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ProSense

(116,464 posts)
Wed Jan 25, 2012, 01:15 AM Jan 2012

SOTU: Schneiderman will co-chair mortgage probe (updated)

Last edited Wed Jan 25, 2012, 02:30 AM - Edit history (2)

SOTU: Schneiderman will co-chair mortgage probe

Attorney General Eric Schneiderman will co-chair a presidential task force intended to identify the causes of the mortgage meltdown — an assignment handed to him by President Barack Obama as part of the State of the Union message.

Obama made the announcement during a section of the speech devoted to tougher financial oversight, calling on federal AG Eric Holder to create the unit. Schneiderman was not mentioned by name, but his office confirmed his new role and that he was in Washington for the speech.

Schneiderman’s new role was first reported after 8 p.m. by the Huffington Post, which has been covering Schneiderman a whole lot lately.

<...>

Just after Obama mentioned the new unit, Schneiderman’s office released this:

“I would like to thank President Obama for his leadership in the creation of a coordinated investigation that marshals state and federal resources to bring justice for the victims of the misconduct that caused the mortgage crisis.

“In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the economic crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again.

“The American people deserve a robust and comprehensive investigation into the global financial meltdown to ensure nothing like it ever happens again, and today’s announcement is a major step in the right direction.”
Update: The White House has provided more background on the new panel, which will be specifically tasked with investigating misconduct that contributed to the mortgage meltdown through the pooling and sale of residential mortgage-backed securities.

- more -

http://blog.timesunion.com/capitol/archives/109262/sotu-schneiderman-tapped-to-co-chair-mortgage-panel/


Udated to add this link, worth checking out: http://www.stopfraud.gov/news-index.html

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SOTU: Schneiderman will co-chair mortgage probe (updated) (Original Post) ProSense Jan 2012 OP
Need some more facts but I hope this didn't buy the NY AG's agreement on the 50 state deal.. winstars Jan 2012 #1
And Delaware and California. elleng Jan 2012 #2
It's great news! n/t ProSense Jan 2012 #4
Yes. Hope it works. elleng Jan 2012 #5
Good group. n/t ProSense Jan 2012 #13
This message was self-deleted by its author sakabatou Jan 2012 #3
? elleng Jan 2012 #6
Afraid not. JackRiddler Jan 2012 #12
This message was self-deleted by its author sakabatou Jan 2012 #14
There was an information vacuum in regards to sub-prime mortgages. Corporations applegrove Jan 2012 #7
It means the markets don't work, simple, elleng Jan 2012 #9
Wish he'd appointed Spitzer. But this is welcome news! nt gateley Jan 2012 #8
Can't touch Spitzer yet, I think, gate, tho I agree. elleng Jan 2012 #10
Hard to think of a better choice or move in this matter. JackRiddler Jan 2012 #11
He ProSense Jan 2012 #15

winstars

(4,213 posts)
1. Need some more facts but I hope this didn't buy the NY AG's agreement on the 50 state deal..
Wed Jan 25, 2012, 01:20 AM
Jan 2012

We all saw him on the TeeVee and I don't think he would/could be bought off... but... The Prez is going to Nevada where the AG is also not on board with the sweetheart deal for the banks. It will be interesting to see what happens...

elleng

(130,126 posts)
2. And Delaware and California.
Wed Jan 25, 2012, 01:26 AM
Jan 2012

Given what we've seen of Schneiderman, I suspect there's enough teeth in this job so it can really amount to something.

Response to ProSense (Original post)

Response to elleng (Reply #6)

applegrove

(118,008 posts)
7. There was an information vacuum in regards to sub-prime mortgages. Corporations
Wed Jan 25, 2012, 02:16 AM
Jan 2012

made millions based on the fact they knew the mortgages were crap and the people signing up for them or buying the packaged mortgages didn't know how bad it was. Used to be that you assumed your bank would be sure about whether you were a good candidate for a mortgage. That was the assumption many people out there were still working under. Bankers made millions in bonuses based on all the loan transactions they were able to make, the derivative transactions they were able to make, all based on a lack of good information their customers had.

That seems to be a new business meme: to make money off of people less informed than they are. The basic assumption under all economic models of markets is that given perfect information, demand and supply will find some healthy equilibrium. If the assumptions in the economic models is no longer correct, what does that mean for markets everywhere?

elleng

(130,126 posts)
9. It means the markets don't work, simple,
Wed Jan 25, 2012, 02:22 AM
Jan 2012

so the mess we've got/had is not, in fact, a fault of capitalism, but the fault of fraud and failed government oversight.
Lets try to sell THAT message to repugs!

ProSense

(116,464 posts)
15. He
Wed Jan 25, 2012, 09:28 AM
Jan 2012

has certainly made his views clear. His position is well documented.

This is a really good thing.

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