The conservative Washington Post editorial board has weighed in on the settlement talks between banks and
fifty forty-six state attorneys general around robosigning. Oddly the WaPo blames New York Attorney General Eric Schneiderman for the foreclosure crisis, because he wants to investigate what is happening and prosecute any illegal actions by the banks. The WaPo ed board basically wants a quick settlement so they can move on with as little damage to banks as possible (undisclosed coincidence: Warren Buffett owns a big piece of the Washington Post, as well as Bank of America and Wells Fargo).
But beyond the usual dishonesty that goes along with any pro-banker screed around foreclosure and securitization fraud, the Post’s editorial board just makes up a few facts in their attack on Schneiderman:
The majority of the other attorneys general, led by Tom Miller of Iowa, have kicked Mr. Schneiderman out of the negotiations, accusing him of making excessive demands. Mr. Schneiderman protests that the banks are to blame, for trying to use the robo-signing case to get immunity they could use on the securities front. Mr. Miller and his colleagues respond that they have no intention of letting the banks off that particular hook.
First, Miller kicked Schneiderman off of the executive committee unilaterally. There was no vote of other AGs, at least according to, ahem, the Washington Post.
Second, and more importantly, Miller is offering the banks a release around securitization fraud. Shahien Nasiripour at the Financial Times reported on Monday night:
State prosecutors have proposed effectively releasing the companies from legal liability for allegedly wrongful securitisation practices, according to five people with direct knowledge of the discussions.
As we’ve seen before, when the banks send their allies out to attack Eric Schneiderman, there is little regard to the truth.