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NY AG Brings New Charges Against Big Banks

NY AG Brings New Charges Against Big Banks

Today New York State Attorney General Eric Schneiderman charged several major U.S. banks with executing a range of “deceptive and fraudulent” foreclosure filings through the creation and use of MERS, a private national mortgage electronic registry system.

According the the compliant, agents and employees of Bank of America, JPMorgan Chase and Wells Fargo “have repeatedly submitted court documents containing false and misleading information that made it appear that the foreclosing party had the authority to bring a case when in fact it may not have.”

The complaint also alleges that the MERS system eliminated the ability of homeowners and the public to track property transfers, further clouding the foreclosure process.  “The banks created the MERS system as an end-run around the property recording system, to facilitate the rapid securitization and sale of mortgages. Once the mortgages went sour, these same banks brought foreclosure proceedings en masse based on deceptive and fraudulent court submissions, seeking to take homes away from people with little regard for basic legal requirements or the rule of law,” Schneiderman said.

This is just the latest in a series of lawsuits surrounding foreclosure fraud, and likely not the last. While there has been plenty to be upset with in terms of how the Obama administration has responded to Wall Street pressure, no one can accuse Schneiderman of taking it easy on Big Finance. Given his new role in the Obama administration and this announcement following so closely, expect to see more in the way of punitive actions taken against the financial sector.

Related Stories:

City Of Berkeley Plans To Pull $300 Million Out Of Wells Fargo

Tell Obama: Don’t Let Banks Off The Hook For Mortgage Fraud

 

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Photo from tracy o via flickr.

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46 comments

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9:36PM PST on Feb 7, 2012

thank you.

9:32PM PST on Feb 7, 2012

Ernie M
I totally agree but with one stipulation, that these greedy SOBs who ruined millions of American lives are not to be put in any "country club" prisons but directly into federal maximum prisons so they can "bunk with Bubba"...

6:55AM PST on Feb 6, 2012

Sweet! now give them Jail time should be about the top 1000 officers in each bank. there should also be large fines and room for affected people to file civil suit for damages also.

6:09PM PST on Feb 5, 2012

ALL of the people involved in the Deceptions & Out-Right LIES that have caused so many PEOPLE & FAMILIES to lose their homes or left otherwise dependable, law-abiding, hard-working people from being able to buy homes should have their homes taken away as well as ANY & ALL monies they were being paid {including, hush-money, bonuses, & wages}, their licensing, accreditations, & any
means for them to make a LIVING wage. Let these sleazy, corrupt, SNAKES-IN-THE-GRASS know EXACTLY what it feels like to be HOMELESS & unable to procur employment that could help assure them of iving out their HOPES & DREAMS and see how their attitudes change!!!!!!!!!! See how easy it would be for these people who own cars that cost more than some peoples homes could receive assistance in finding: Safe/Secure/Income-Effective/ & Comfortable housing, Food, Transportation, Educational funds for their kids, Medical/Dental/Life Insurance, Clothing, & someone/Anyone to give a Damn about just how hard they were struggling for their Families needs! As it stands these THIEVES don't have to worry about providing wants for themselves & their families, whereas they were perfectly willing to do whatever it took to STEAL peoples Homes/Hopes/Dreams/Security/ & Safe-Havens from them!!!!!!!!!! The SHAME ALONE SHOULD BE ENOUGH TO MAKE THEM THROW THEMSELVES OFF OF BRIDGES, but htey are too ARROGANT for that & have too much STOLEN money to spend to even consider trying t

2:02PM PST on Feb 5, 2012

ALL too big to il companies….even banks should be split up by law. Any company too big to fail is dangerous to our country.

7:51AM PST on Feb 5, 2012

Schneiderman is the best, and I'm so glad that Obama appointed him to head the committee. I very much agree with another commentator, and have said so for years, that the Glass-Steagal Act must come back. That repeal started our problems.

11:02PM PST on Feb 4, 2012

Something needs to be done to the Banksters.

6:25PM PST on Feb 4, 2012

If you are too big to fail, you are too big to exist. Bring the Glass Steagal act back and enforce it. These banks need to be broken up and sold while the Presidents and top CEOs go to prison, move over Maddoff.

This recession is said to be 70 times worse than the S&L scandal but so far no one has gone to prison. The person responsible for the S&L prosecutions can't understand why and says there is more fraud this time. We deserve answers and they deserve HARD TIME!!!!

5:22PM PST on Feb 4, 2012

Ah! Greed! Greed! Greed!

That seems to be the only minset of Big Banks in the US, Canada world wide. I applaud the New York State attorney general for taking action against these criminals masquarading as the "beacons of business".

I agree with the other commentary about the unregulated environment that led to the scandulous sub prime crisis in 2008. The US government bailed them out and they still persist in these unsrupulous acts. I think that the leash beeds much more tightehing on these heartless and souless corporations.

L. Vaccarello

5:20PM PST on Feb 4, 2012

Jail the crooks !!!!

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