Power Play in Foreclosure Arena: New York Attorney General Sides with Consumers
New York Attorney General Eric Schneiderman stands alone on the side of the consumer, seemingly everyone else against him.
The banks are trying to wipe out all of the potential claims against them, and they are being helped by the Obama administration, the Federal Reserve, and most of the State Attorney Generals. Only one man, New York Attorney General Eric Schneiderman, seems to find anything wrong with the idea that the banks should pay only $20 billion to wipe out all liability from their widespread fraud, perjury, and tanking of the world economy.
Now the Obama administration is in a full court press trying to get Mr. Schneiderman to drop his objections. Housing and Urban Development Secretary Shaun Donovan has reportedly been calling the AG’s office to try to get Mr. Schneiderman on board with the patented “Get out of jail for a pittance” plan.
Thankfully, Mr. Schneiderman seems to have other, more radical, ideas like actually doing his job. He has opened numerous inquiries with real, live experts to look into the well documented systemic disregard for the law and ethics.
Mr. Schneiderman also sued to stop Bank of America from rushing through their $8.5 billion settlement with investors in Countrywide’s mortgage backed securities (MBS). While the big boys like the New York Fed and Bank of New York Mellon secretly negotiated the settlement, they are refusing to let other plaintiffs, like teachers’ pension funds and retirees in Europe, see if the deal is fair.
Apparently, such action was too much; the AG simply crossed the line by protecting teachers and retirees.
Kathryn Wylde, a board member of the New York Fed charged with looking after consumers