Schneiderman Steps Up As Mortgage Crisis Task Force Gets To Work
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A new federal mortgage crisis unit is officially up and running, and it’s co-chaired by New York State Attorney General Eric Schneiderman. NY1’s Erin Billups filed the following report.With a team of 80 attorneys, analysts and investigators already established, 30 more on the way, and several other state attorneys general, the Justice Department hopes its new residential mortgage task force will shake things up on Wall Street.
"We are bound and determined and will hold people accountable in this sector," said U.S. Attorney General Eric Holder.
New York Attorney General Eric Schneiderman, one of five co-chairs, will be at the helm.
"Collectively, we have jurisdiction to go after every aspect of the artificial inflation of the housing bubble and the mortgage-backed securities bubble and the crash that brought down the economy," said Schneiderman.
But with it being more than three years after the housing bubble burst, many wonder why now’s the right time for the task force.
Critics suggest much more could have been done in the aftermath of the mortgage crisis.
"It is not as if we have not been doing anything. We've been doing a great deal, but I'm confident that with this new structure that we're putting in place today that our efforts will be enhanced," said Holder.
They plan to hit the ground running. Immediately following the official announcement Friday, the full working group met for the first time behind closed doors.
"I'm very excited about the prospect of going forward. I think these are the agencies we need to give us the jurisdiction and the resources to really dig in," said Schneiderman.
And when it comes to any reservations with the administration's pending settlement with the some of the nation's largest lenders, Schneiderman insists he's no longer concerned the deal will shield banks from future investigations.
"The president, the justice department, the SEC and I clearly would not be undertaking this investigation if we thought the releases provided in the servicing settlement would impede the investigations. So I'm confident the releases have been narrowed, are being narrowed and the investigation is going to go forth aggressively," said Schneiderman.
The working group hopes at some point to be able to compensate victims and homeowners affected by the housing market crash.