Wednesday, January 25, 2012

NY AG Eric Schneiderman promises aggressive financial fraud probe

New York Atty. Gen. Eric Schneiderman, who was tapped by President Obama to co-chair a new state and federal mortgage crisis unit, promised Wednesday to move aggressively to coordinate investigations into the causes of the subprime mortgage market meltdown.

"We’re undertaking a more coordinated effort to pull together all of the various strands of investigations relating to the conduct that created the mortgage-backed securities bubble and led to the market crash," Schneiderman told reporters in Washington after an event at the Consumer Financial Protection Bureau.

"There have been investigations going on in various states and branches of the federal government," he said. "We’re now making a concerted effort to pull everything together and move forward aggressively to address these issues."

He said the new unit, part of the existing federal Financial Fraud Enforcement Task Force, would go after "every aspect of the conduct that created the bubble and crash," including the origination of mortgages and the packaging of them into securities.

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