August 24, 2011

Miller caves to big bank pressure

Decision to remove NY AG from foreclosure group was politically motivated

Des Moines, IA – Members of Iowa Citizens for Community Improvement (CCI) say that Iowa Attorney General Tom Miller took one step closer to letting the big banks off the hook Tuesday, following reports that Miller had removed New York Attorney General Eric Schneiderman from the group of AGs investigating foreclosure fraud.  Scheniderman was kicked off the team leading the investigation after refusing to grant the big banks immunity for fraud committed before, during and after the greatest financial disaster in modern history caused by Wall Street greed.

“Miller threw Schneiderman under the bus and as a result we’re likely to see a significantly weaker settlement,” said CCI member Judy Lonning from Des Moines.  “We’re extremely disappointed.  Tom has really let us down.”

“Scheiderman was the first AG to say that he wasn’t going to back down on the big banks, and he was the first AG kicked out of the investigation,” Lonning said, “There’s no question who this decision favors.  It’s all about making life better for the big banks, and we expected Tom Miller to do better than this.”

Miller did not take similar action after several pro-corporate AGs threatened to walk away earlier in the discussions.  The news about Scheiderman’s dismissal follows reports that Miller and the Obama administration were pressuring several AGs to get in line and to settle quickly.  CCI members say that any quick settlement can only favor big banks by preventing a thorough investigation and eliminating the possibility of tough penalties and fines.

CCI members also questioned the influence of the Obama administration in Scheiderman’s removal.  A thorough investigation would take a significant amount of time and put big bank officials and donors under the spotlight, and would highlight the White House’s continued failure to hold big banks accountable.

“Obama wants a quick settlement so this isn’t a campaign issue,” Lonning said.  “He seems more interested in raking in campaign donations from Wall Street  than he is in winning justice for everyday people and American homeowners, and Miller’s move played right into Obama’s hands.”

“It’s a cheap political shot, made to let the big banks get back to business and put Obama back in the White House,” Lonning said, “and in the meantime, American homeowners get to sit back and watch as the greedy bankers that ruined their lives are let off the hook once again.”

Iowa Citizens for Community Improvement is a group of everyday people who talk, act and get things done on issues that matter most. With thousands of members from all walks of life – urban and rural, black and white, immigrants and lifelong Iowans – CCI has been tackling tough issues and getting things done for more than 30 years.  CCI is a member of National People’s Action and The New Bottom Line.

~

4closureFraud.org