The Administration PR Fail on the Securitization Task Force

Remember that mortgage securitization task force that would supposedly satisfy the public’s deep yearning for some basic law enforcement by prosecuting the banks for securities fraud? Well, lately people have been pointing out that the task force isn’t showing many signs of life, and is showing every indication of being slow walked by the Feds. For starters, more than two months after the task force’s creation, it hasn’t been staffed with the 55 people its budget calls for. How’s that for serious commitment from the Feds?

Well, yesterday the Administration pushed back, telling Reuters about the subpoenas the task force has issued. Turns out the Administration has picked a good law to use, FIRREA, which was designed in the wake of the S&L crisis specifically to make going after banks for fraud easier. And that’s great.

But just as I was starting to feel better about the task force, I hit this part of the article:

“The Justice Department last month posted a one-year position of full-time coordinator for the working group who could help manage discovery and coordinate investigations, according to the job posting.”

Rest here…

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4closureFraud.org