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McClatchy, a news gathering organization, skeptical of Obama's Fraud Unit

(Or "OFU" heh). McClatchy:

A sympathetic member of the congressionally created Financial Crisis Inquiry Commission, charged with getting to the bottom of the 2008 financial crisis, also questioned Obama's timing.

"He should have done it three years ago in January 2009, when the trail would have been fresh, witnesses' memory would have been fresh, the statutes of limitations would have been necessarily missed," said the commissioner, who requested anonymity to speak freely. "I think it's high time that it be done — people need to be held accountable." ...

McClatchy's investigative reporting after the crisis showed how Goldman Sachs duped investors who were buying mortgage bonds, and how the ratings agency Moody's Investors Service traded top ratings for mortgage bonds for more business from big Wall Street banks. This reporting was later confirmed by Senate hearings and the Financial Crisis Inquiry Commission, which held lengthy hearings and issued a comprehensive report outlining causes of the crisis. ...

Moreover, there already is a Financial Fraud Enforcement Task Force, comprised of more than 20 federal agencies and 94 U.S. attorneys offices, along with state and local law enforcement officials. ...

A Department of Justice official, demanding anonymity because he was not authorized to speak, said the agency will create a new Residential Mortgage-Backed Securities Working Group [When everybody is responsible, nobody is responsible]. It will be run as an offshoot [screams powerlessness] of the existing task force [successfully delivering zip, nada, squat since 2009] and will look narrowly [not systemically, heaven forfend] at how mortgages were [note passive voice] bundled together into mortgage bonds [not sure if all financial instruments are included in that category].

"There are currently active civil and criminal investigations [not prosecutions] by task force members into this market, as well as new investigations [not prosecutions] forthcoming, and this new working group [when everybody is responsible, nobody is responsible] is a specialized offshoot [rather like the vermiform appendix] of the (task force) that brings together [much as a Rube Goldberg device] the DOJ, state attorneys general and other federal entities in an effort [we're trying] to collaborate on these investigations, pool resources and streamline processes to investigate [and not prosecute] those responsible [but not criminally] for misconduct [mistakes were made] contributing to [and not causing] the financial crisis in a comprehensive way," the official said.

Wowsers. I've highlighted the inside bureaucratese that screams "Committee effort, derailed, going nowhere." Heck, where's the Special Prosecutor? The Rs got one over a blow job, but now... They're oddly silent. Or not.

[New York Attorney General Eric Schneiderman's] appointment to the new unit, however, seems a way to clear obstacles for a proposed settlement that was sent to states for review on Monday, prompting speculation that a deal is near.

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Submitted by jawbone on

way for acceptance of the proposed abominable settlement?

He is still AG of NY and has the strong NY financial sector laws at his disposal.

Is he supposed to disappear due to being one of four co-chairs of this commission?

And what about Phil Angelides' Financial Crisis Inquiry Commission report and findings? Which, iirc, he sent on to DOJ for actions?