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Why the corrupt, pennies-on-the-dollar, "Get out of jail free" deal with the banksters that Obama's pushing?

Why, campaign contributions for President Fuck You, of course. That's the bottom line of Matt Taibbi's very readable description of the accounting control fraud Obama and Iowa AG Tom Miller are trying to cover up -- and that NY AG Eric Schneiderman is trying -- we all hope -- to blow the lid on:

The issue goes beyond fraudulent paperwork to an intentional, far-reaching theft scheme designed to take junk subprime loans and disguise them as AAA-rated investments. The banks lent money to corrupt companies like Countrywide, who made masses of bad loans and immediately sold them back to the banks.

The banks in turn hid the crappiness of these loans via certain poorly-understood nuances in the securitization process – this is almost certainly where Scheniderman’s investigators are doing their digging – before hawking the resultant securities as AAA-rated gold to fools in places like the Florida state pension fund.

They did this for years, systematically, working hand in hand in a wink-nudge arrangement with clearly criminal enterprises like Countrywide and New Century. The victims were millions of investors worldwide (like the pensioners who saw their funds drop in value) and hundreds of thousands of individual homeowners, who were often sold trick loans and hustled into foreclosure when unexpected rate hikes kicked in.

In a larger sense, even the (often irresponsible) people who simply bought more house than they could afford were victims of this scam. That's because in many of these cases, credit simply would not have been available to those people had the banks not first discovered a way to raise vast sums of money dumping crap loans on an unsuspecting market.

In other words: if Bank of America hadn’t found a way to sell worthless subprime loans as AAA paper to the Chinese and the Scandavians in May, you can be sure that it wouldn’t be going back to Countrywide in June to lend out more money for more subprime loans.

And Countrywide, in turn, wouldn’t then have been sending masses of reps out into the ghettoes to offer juicy home loans to undocumented immigrants and refis to confused old ladies on social security.

This is as bad as white-collar crime gets.

The banksters are filthy and disgusting. As are the legacy parties and the government they own.

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jumpjet's picture
Submitted by jumpjet on

but I did manage to read a piece from earlier in the month giving me more reason to be hopeful about Schneiderman: he and Andrew Cuomo do not get along. Apparently, Cuomo was very late in supporting his run for AG, and has been running afoul of Schneiderman's pro-consumer work while in office.

If anyone can get around the paywall, the link is here: http://online.wsj.com/article/SB10001424...

Cuomo, it's become clear, is a shill for the New York elite. Good on Schneiderman for making yet another of the right enemies.

a little night musing's picture
Submitted by a little night ... on

copied to Schneiderman's personal website:

“The thing about Eric is that he is a fighter,” said Ms. vanden Heuvel, a supporter and long-time friend. “We have a president who has not been willing to find points of conflict in order to even educate the American people … Eric is someone who is willing to take his own side in an argument. Too often in this country, liberals have ducked and bobbed and not been willing to do that.”

In 2008, Mr. Schneiderman penned an article for Ms. vanden Heuvel’s magazine in which he implored liberals to not sacrifice transformational politics for what he called “transactional politics.” The latter involved electing allies and forging compromises to get the best deal possible in the legislature; the former meant shifting the terms of the debate to beat back the tide of reactionary politics.

Implicitly, at least, it is a rebuke to what is currently happening in Washington, where liberals are dismayed that President Obama appears to keep negotiating for himself.

But Mr. Schneiderman’s op-ed also served as something of a rebuke to Mr. Cuomo, who campaigned last year on the government-slashing rhetoric of the right, and who overachieved in his first year in Albany by packing legislative deals on top of other legislative deals.

Veterans of the A.G.’s office say that the relationship between an attorney general and governor is destined to be fraught with tension. The attorney general is the governor’s lawyer, and most of the office’s work involves defending state agencies from lawsuits. But the two also co-exist in a rather nebulous sphere where the prerogatives of the two offices, and the credit for sweeping victories, awkwardly overlap.

Mr. Cuomo and Mr. Schneiderman first met during Mario Cuomo’s 1982 campaign for governor, when the elder Mr. Cuomo rallied from 40 points down to defeat Ed Koch. Still, Mr. Cuomo quietly backed Mr. Schneiderman’s chief opponent, Nassau County District Attorney Kathleen Rice, during the 2010 campaign—though aides argue it had more to do with the desire to have a woman from the suburbs on the ticket.

Soon after he was sworn in, Mr. Cuomo proposed legislation that would have added sweeping new provisions to his portfolio, and ones that could have transferred away much of Mr. Schneiderman’s ability to investigate Wall Street malfeasance. Mr. Cuomo has also demurred in turning over ethics enforcement to the A.G.’s office. Mr. Schneiderman has told friends that he feels himself under “the glare” of Mr. Cuomo, and he has undergone criticism from some allies that he hasn’t more aggressively opposed some of the governor’s initiatives.

For his part, Mr. Schneiderman allied with Comptroller Tom DiNapoli—who suffered a drawn-out investigation by Mr. Cuomo when he was A.G.—to expand his office’s power to investigate public corruption.

“The relationship between the governor and the A.G. is like that of any lawyer with a pain-in-the-ass client,” said one former Cuomo-era official.

The job is made even more difficult by the fact that the past two attorneys general served with their eyes firmly focused on the governor’s mansion. Mr. Schneiderman has asked friends to refrain from even making jokes about him as the “awaiting governor,” and those who know him say that although any statewide elected official can’t help but see himself in the governor’s mansion, Mr. Schneiderman doesn’t seem consumed with ambition to get there quickly.

“Some of the work I am doing won’t yield results tomorrow, or next year, but if we don’t do it we are going to keep losing ground over the long haul,” he said. “This is a moment for a redefinition of American politics.”

(Yeah, I copied and pasted most of the article. I'm getting the feeling no one reads my posts or follows my links. I linked this article in an earlier post I made. ETA: sorry, not whining, just realizing I need to leave more text and punch my content more.)

Submitted by jawbone on

shouldn't worry about reposting important pieces, since not every one can read everything, much less retain everything they do read. And it it's worthwhile, a repost sure doens't hurt.

Anyone who's read it can click right back from it.

I knew from Cuomo's announcement speech that he was running for gov he was going to be similar to Obama: A Repub Lite or Blue Dog is nice clothes. He used many of the same Repub talking points Obama uses. And the looks and sound of his famously liberal father, which makes it easy to bamboozle the public.

I had gathered there was friction between the AG and Cuomo The Younger, but I had not realize Cuomo was trying to neuter the AG. Wow.

Jsut wow.

Not my state, by being in NJ, NY has a lot of impact on what happens in my life. And with the MERS and full investigation of Banksters issues, Schneiderman is perhaps our last hope for justice.

gqmartinez's picture
Submitted by gqmartinez on

I like to point people to data like this, that shows that there are more prime load deliquencies than subprime in total numbers.

I hear over and over again about how it was stupid poor people who had no business buying houses were the problem. Well, um, they shouldn't have been a problem. And they weren't really stupid. Lots of people can't pay for their homes, even people who had good credit.

I find it useful to point out that there were more people who had prime loans who miss payments than those with subprime loans. Its easy to scapegoat the "stupid poor people" on this, but the fact that there were less absolute numbers of delinquent subprime loans is a good segue into the shit that the banks did. It was the stupid *banksters* who fucked up the most, not the "stupid poor people". They didn't just leverage the subprime loans, but they leveraged on the leverage as well. We *have* to stop blaming the subprime loanees. The stupid bankers took loans on the subprime mortgages. So even if the poor folk were stupid, the bankers were even more stupid.

From my conversations, the "too-big-to-fail" mindset is widespread. We need to start undermining that by pointing out that they are incompetent at least as much as we point out they are greedy. Or something. The greedy bankster meme isn't really working anymore.