Friday, August 26, 2011


NYT editorial says Schneiderman
shouldn’t go along with
foreclosure settlement

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This is big. The New York Times editorial board is saying that New York Attorney General Eric Schneiderman shouldn't go along with the Obama administration's, and Iowa AG Tom Miller's, efforts to have a broad settlement of their ongoing foreclosure fraud investigation.  (John reported on the administration's efforts to push prosecutors to settle, here.)

The Times ed board then rebuffs HUD Secretary Shaun Donovan, who has been pressuring Schneiderman to stop rocking the boat. The Times doesn't get all their facts right - the settlement in discussion isn't for a narrow immunization around robosigning. But what's most impressive, beyond them calling out the Obama administration's efforts to help Wall Street avoid investigation and accountability, is how the Times accurately calls the settlement inadequate and one of the weakest options out there for helping homeowners
The administration also says that the proposed settlement would require the banks to write down the principal balance on underwater loans. According to news reports, the banks are likely to pay around $20 billion in the deal. With 14.6 million homeowners owing $753 billion more on their mortgages than their homes are worth, how far does the administration think $20 billion would go?

The administration should pursue principal reductions for stressed borrowers, and it could do so immediately by calling on Fannie Mae and Freddie Mac to refinance the underwater loans of borrowers who are current in their payments. What it shouldn’t do is pretend that the proposed settlement is the only — or best — way to get quick relief to homeowners.
The numbers being tossed around with the foreclosure fraud settlement are tiny. Even at ten times what's being talked about, the settlement figure, which would be spread across five major banks, would be inadequate. And the administration already has tools at its disposal to directly benefit underwater homeowners. They're just refusing to use them.

Phillip Anderson of New York's top political blog, The Albany Project, suggested that people call and thank Schneiderman for standing up for the rule of law and for homeowners. If you're in NY, drop his office a line and tell him you stand with him: 
Maybe we should all call our AG (800 771-7755 or 212 416-8000) or e-mail him and thank him for standing up to the banksters and their enforcers in DC. I bet he would appreciate the show of support.

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  • blueoysterjoe
    Man, I was so happy to send an email to the AG thanking him for his belief in the frackin' rule of law.

  • Snaggletooth
    If newspapers actually wrote the truth, how many more people would actually buy them?

  • PeteWa
    How long until Schneiderman is Spitzer-Weinered?
    Place your bets, everyone!

  • sammi72
    Last week Elliot Spitzer wrote a great piece on slate that was posted here. Untill we solve the housing problem we will not fix the econonmy! Simple! This administration is bought and paid for by Goldman Sachs and hedge funds. They have no clue and no new ideas. The base is disgusted and a lot of people are going to stay home in Nov 2012. I keep waiting for this administration to bring in new blood and new ideas; it is not happening. I detest Pat Buchanon;however he did make a remark about this administration a year ago that is sadly on target. He said"they are so faculty lounge".

  • Tmkane
    This is a kiss up, crap down country.  

    Kiss the ass of the rich and powerful, crap on your own people, country. 

    I'm ready to go to a unicameral parliamentary system, where we can have more than one party in two guises to vote for, and where the ruling executive has to debate his positions openly infront of the oppositioin in a public forum.

    Not that that's gotten England or Canada very far, but there you have it. 

  • RandyAW
    It appears Hope and Change was what Wallstreet managed to get in the last election.
     Does Obama's camp actually assume every one on the left is like the Foxtards on the right, and like they did with Bush, we will believe anything Obama's bottom feeders say to us? 
     Everytime O says he's going to do something to help the middle class, I just tuck my head between my legs and kiss my ass goodbye one more time.

  • Tmkane
    vote green. vote socialist. write in Elizabeth Warren.

  • dracosolon
    It's nice to know at least somebody in our government hasn't been wholly bought and paid for by Wall Street and the rich yet. I'm sure the pressure that's being exerted on him to cave point is quite personal at this point, (future job prospects in and out of government, etc, etc.) and no longer has anything to do with policy.

  • Poor guy, about to be smeared and lose everything. You don't stand up to the powers that be and come away unscathed.
    Maybe they'll just kill this one.

  • Indigo
    It's all to the good.  The Obamacrats are ruining what's left from the Bush Debacle. Throw them out!

  • BrooklynRiderCollapse
    Bernie Madoff went to jail for life for his crimes. The banks committed the same crimes on a scale that makes Madoff seem insignificant. If corporations have the same rights as a person, then prosecute them the same way (and include a death penalty).

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