Subject: Fwd: 3 More Blog Posts on the FCU
From: "BB" <[email-masked]>
To: "ted kaufman" <[email-masked]>, "Alexander Snyder-Mackler" <[email-masked]>, "Biden Hunter" <[email-masked]>, "Eric Schwerin" <[email-masked]>
Date: Wed, 25 Jan 2012 11:40:16 -0500

---------- Forwarded message ----------
From: Lefkon Owen (DOJ) <[email-masked]>
Date: Wed, Jan 25, 2012 at 10:59 AM
Subject: 3 More Blog Posts on the FCU
To: Beau <[email-masked]>, "Butler Charles (DOJ)" <
[email-masked]>, "McConnel Ian R (DOJ)" <
[email-masked]>, "Rogalsky Joseph E (DOJ)" <
[email-masked]>

 ** **

http://abigailcfield.com/?p=832****

** **

Schneiderman isn’t chairing anything. He’s Co-Chairing. That’s a huge
difference. If he’s Chair he’s in charge. If he’s Co-Chair he needs
consensus. And who is he Co-Chairing with? Lanny Breuer. That’s
unacceptable. …he’s an ex- (and likely future) Covington & Burling
partner<http://www.huffingtonpost.com/2012/01/20/eric-holder-banks-lanny-breuer_n_1218452.html>?
Doesn’t matter. His track record speaks for itself. There is only one
reason to have him co-chair with Schneiderman, and that’s to rein
Schneiderman in. …President Obama, if you want to do good policy, you have
to kick off Breuer and Khuzami. They must be recused; fully walled off.
Schneiderman must run the show, not Co-Chair it. Unless his Co-Chair is
Neil Barofsky. Schneiderman must have full subpoena power backed up by the
resources to fully investigate and prosecute. And indictments must be
immediate.****

** **

http://www.nakedcapitalism.com/2012/01/is-schneiderman-selling-out-signs-up-to-co-chair-committee-designed-to-undermine-defectors-to-mortgage-settlement-deal.html
****

** **

…And while I’d like to think better of Schneiderman, an announcement
earlier this evening has strong hallmarks of Schneiderman falling prey to
the combined pressures and blandishments of the Administration and its
allies.****

** **

…Neil Barofsky, former prosecutor and head of SIGTARP, doesn’t buy the
logic of this committee either:****

****

…The wee problem is that this committee looks like yet another bit of
theater for the Administration to pretend, yet again, that it is Doing
Something, while scoring a twofer by getting Schneiderman, who has been a
pretty effective opponent, hobbled.****

** **

…And it seems awfully plausible that the aim of getting Schneiderman on
board with an Administration “investigation” is to undermine the effort by
15 Democrat attorneys general to devise their own strategy for dealing with
mortgage abuses. We’ve heard reports privately that some of the defecting
AGs are in a panic.****

** **

…It’s clear what the Administration is getting from getting Schneiderman
aligned with them. It is much less clear why Schneiderman is signing up. He
can investigate and prosecute NOW. He has subpoena powers, staff, and the
Martin Act. He doesn’t need to join a Federal committee to get permission
to do his job. And this is true for ALL the others agencies represented on
this committee. They have investigative and enforcement powers they have
chosen not to use. So we are supposed to believe that a group, ex
Schneiderman, that has been remarkably complacent, will suddenly get
religion on the mortgage front because they are all in a room and
Schneiderman is a co-chair?****

** **

Maybe Schneiderman has convinced himself that he will get more reach or
resources this way, but I have trouble fathoming the logic. While he did do
a real service by begin the first to question the AG settlement when that
was a isolated and courageous position, and was also early to crank up
investigations, other less well resourced states (Delaware, Nevada,
Massachuseetts) that started later have filed serious cases. In particular,
Catherine Cortez Masto of Nevada has been doing old fashioned,
go-after-the-foot-soldiers-to-get-the-capos prosecutions of the sort Eliot
Spitzer recommended in Inside Job. Why has Schneiderman, after such a
promising start, done so little?****

** **

http://news.firedoglake.com/2012/01/25/the-schneiderman-gambit-financial-fraud-unit-appears-designed-to-fail-and-grease-skids-for-foreclosure-fraud-settlement/
****

** **

…But “co-chair” is the operative word here, and it suggests that the entire
maneuver was created to grease the wheels for the pre-arranged settlement,
while turning this investigatory arm into nothing so much as regulatory
theater.****

** **

…First of all, this becomes part of a three year-old Financial Fraud Task
Force <http://www.stopfraud.gov/about.html> which has done approximately
nothing on Wall Street accountability outside of a few insider trading
arrests.****

** **

…I have a lot of respect for Schneiderman, at least for the stances that he
has taken since becoming AG. He has begun a lot of investigations with
respect to mortgages and foreclosures, but hasn’t actually put forward any
lawsuits, unlike counterparts in Delaware, Nevada and Massachusetts. Maybe
he just wants to work from within and leverage federal resources.****

** **

…As one observer close to an AG told me last night, “I don’t know how Eric
Schneiderman gets a wave and a wink from the President of the United States
in the State of the Union address without standing behind the
Administration’s agreement.” Indeed. That upsets the entire balance of
power with respect to the settlement. If Schneiderman joins, it undermines
the group of “Justice Democrat” AGs who were working on how to deal with
investigations in the absence of a settlement. AG offices are freaking out
about this, and it will be tough to keep them from acquiescing now. After
all, they have a fig leaf of this new new investigation.****

** **

…More important, this announcement has collapsed the unified wall of
objection on the left to a settlement. And I mean COLLAPSED. Just a day
ago, activists were getting in the face of their
AGs<http://articles.baltimoresun.com/2012-01-23/business/bs-bz-foreclosure-settlement-appeals-20120123_1_douglas-f-gansler-advocacy-groups-settlement>,
warning them of the dangers of a weak settlement that provides little in
the way of relief<http://bottomline.msnbc.msn.com/_news/2012/01/24/10226930-proposed-mortgage-settlement-offers-little-relief-for-homeowners>to
homeowners. Now I have dozens of press releases in my inbox from
liberal
groups offering huzzahs to the President for this wonderful investigatory
panel.****

** **

Bob Borosage of
CAF<http://www.ourfuture.org/news-release/2012010424/president-obama-announces-banks-will-not-escape-investigation-and-prosecutio>:
“After months of troubling rumors that the White House was urging state
attorneys generals to hold banks blameless – and after months of protests
by concerned Americans – the President is doing the right thing by
announcing an investigation of the big banks.”****

Justin Ruben, MoveOn.org: “This is a huge deal for the American people and
the biggest victory yet for the 99%.”****

The New Bottom Line (who I expected a bit more from): “We congratulate
(Obama) for making the smart move of naming New York Attorney General Eric
Schneiderman to co-chair the task force that will lead a full investigation
of the role of Wall Street in the financial collapse and the mortgage
crisis.”****

Peggy Mears of the Alliance of Californians for Community Empowerment:
“This decision is good news for the millions of homeowners whose lives have
been turned upside down by the reckless conduct of Wall Street.”****

Dan Cantor of the New York Working Families Party: “Americans should
welcome the announcement by President Obama that the rule of law applies to
every American, no matter how wealthy or powerful.”****

The Campaign for a Fair Settlement: “The President faced significant
pressure from Wall Street CEOs to let the banks off the hook. By creating
the mortgage crisis unit, President Obama showed real leadership – and
proved that his top priority is fixing the economy for working Americans.”**
**

Rich Trumka of the AFL-CIO: “Recognizing the need for accountability the
President powerfully insisted on a more humble Wall Street subject to a
thorough investigation of the misconduct in the mortgage markets that
wrecked our economy by the full range of federal and state civil and
criminal authorities.”****

** **

I’d really like to be wrong about this. But this just reads like a gambit,
a fix, a charade.****

** **

** **

** **

** **

-- 
Confidentiality Notice:  This electronic message and any attachment(s) are
confidential and may be subject to the attorney/client privilege and/or
work product immunity.  This e-mail is only for the use of the intended
recipient(s).  If you have received this e-mail in error, please notify the
sender immediately by replying to this e-mail, then delete this message and
any attachment(s) from your system.  Any unintended transmission expressly
shall not waive the attorney/client privilege or any other privilege