The mortgage banks are doing their best to escape liability for their large-scale mortgage fraud:
They’ve trotted out Kathryn Wylde, the President of the Partnership for New York City, to attack Eric Schneiderman for his intervention in the Bank of America settlement with investors over mortgage backed securities. Wylde is going to bat for BofA as well as the Bank of New York Mellon, the trustee for the MBS in the settlement. And she is actually arguing that Schneiderman, by defending the rights of investors and seeking the truth on out and out securitization fraud, is threatening the existence of the financial sector in New York City. No, really.
Tanks in the streets and cats living with dogs if the state governments don’t look the other way when the banks commit fraud. That’s certainly a new one. Interesting to see that they’re having to pull it out on a regular basis, isn’t it?