State attorneys general just announced a major settlement on foreclosure fraud, or "robosigning."1 For over a year, banks have been fighting tooth and nail for a deal that would have given them a "Get Out of Jail Free" card for their actions that caused the economic crisis.2 Today they didn't get it, thanks to the efforts of MoveOn members and other progressives, who helped a brave group of state attorneys general stand up to the banks.
The final settlement still has major flaws, but it's very limited in scope—it won't let banks off the hook for the majority of their role in taking down the economy. It also provides a small first step towards compensating homeowners who were directly affected, though it's not nearly enough.3
In short, we stopped the banks from getting all of what they wanted. But we haven't nearly started to hold them fully accountable to the American people.
For every family helped by this deal, there are many, many more who still face foreclosure or who owe the bank far more than their home is worth. We all have to keep fighting hard to make sure they get the help they need and that we hold banks fully accountable.
President Obama's federal investigation task force, co-chaired by New York Attorney General Eric Schneiderman, is just getting started, and is going to face major obstacles from banks fighting hard to conceal their actions—-and from their allies in the administration.4 That's why we need to tell the White House we'll be watching the investigation to make sure it truly holds banks accountable, and that we're committed to fighting to make sure banks deal fairly with homeowners who are trying to reset their mortgages to fair market value. Your calls and commitment got us this far—now let's keep it going.
White House comment line: 202-456-1111
Thanks for all you do.
–Elena, Mark, Amy, Eli, and the rest of the team
1. "States Negotiate $26 Billion Agreement for Homeowners," The New York Times, February 8, 2012 http://www.moveon.org/r?r=271039&id=35585-10220574-cEHYcWx&t=3
2. "A Deal That Wouldn't Sting," The New York Times, October 29, 2011
3. "States Negotiate $26 Billion Agreement for Homeowners," The New York Times, February 8, 2012 http://www.moveon.org/r?r=271039&id=35585-10220574-cEHYcWx&t=5
4. "Eric Schneiderman promises aggressive financial fraud probe," Los Angeles Times, January 25, 2012
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