Huffington Post: NY Attorney General Kicked off Government Group Leading Foreclosure Probe

[Fergasun]

Huffington Post: NY Attorney General Kicked off Government Group Leading Foreclosure Probe

WASHINGTON -- New York Attorney General Eric Schneiderman on Tuesday was kicked off the committee leading the 50-state task force charged with probing foreclosure abuses and negotiating a possible settlement agreement with the nation's five largest mortgage firms, according to an email reviewed by The Huffington Post. Schneiderman was one of roughly a dozen state attorneys general leading the talks with the five companies, alongside representatives of the U.S. Department of Justice, the Department of Housing and Urban Development and other federal agencies. The government launched the negotiations in the spring after widespread reports of foreclosure irregularities, such as so-called "robo-signing" and illegal home seizures, emerged.

...

Sources said attorneys general like Schneiderman, along with the top legal officers from Massachusetts, Delaware and Nevada, among others, were complicating that goal by questioning the plan to scuttle the state and federal investigations in exchange for a settlement.

These attorneys general have said they're reluctant to sign on to an agreement that effectively kills their ongoing investigations or prevents new ones from being launched.

Fed's to State AG's: Stop investigating financial fraud so hard! You're going to kill the financial industry! I can't believe stories like this don't get more press... all the while people bicker and argue about who's going to be the next Captain of the ship in 2012 (this is an attack more on the corrupt Federal system we have than specific targets).

[Beans]

I can't believe stories like this don't get more press... all the while people bicker and argue about who's going to be the next Captain of the ship in 2012 (this is an attack more on the corrupt Federal system we have than specific targets).

Believe it. Most people don't understand what's really important. They are too stupid to realize that the devil is always in the details, and they allow the press to define what issues they are passionate about. They'd rather argue about DADT, gay marriage, money for abortions, etc. Whatever, I've lost hope. In 2012, this country will just elect another turd sandwich or giant douche.

[twa]

Just a matter of competing interests between protecting citizens(and states interests in keeping housing values up) and the federal money machine

want to guess who is gonna win?

[Bang]

We're just ****ed.

~Bang

[Destino]

This is corruption. The government is saying that they are seeking a settlement in exchange for dropping an investigation when they could very easily have both in this instance. The Banks have no negotiating power in this unless they have legally not done anything wrong, which we know they have. If you find the wrong doing you hold all the cards and can demand a settlement of any size depending on how much impact you wanted to have on their institution.

What we are seeing instead is this "government for sale" situation that you'd think would be less out in the open. How much are you willing to pay for us to grant you immunity and stop asking questions? Corporate persons get these types of offers but you people reading this would never enjoy this benefit from our government no matter how rich you are.

My question is this: Why are they only investigating institutional wrong doing and not looking for executives to lock up? They should be doing both instead they are doing neither and trying to sell a get out of jail free card after we already gave bail out money... in essence the government is going to end up paying for it's own settlement with the banks.