Tag Archives: Eric Schneiderman

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Schneiderman Won’t Seek Damages From Ex-AIG CEO Greenberg

Schneiderman Won’t Seek Damages From Ex-AIG CEO Greenberg

New York Attorney General Eric Schneiderman told a court he won’t pursue damages against ex- American International Group Inc. (AIG) Chief Executive Officer Maurice “Hank” Greenberg in a lawsuit dating back to 2005.

The state will still seek a court ruling banning Greenberg from participating in the securities industry or serving as an officer or director of a public company, according to a letter New York Solicitor General Barbara Underwood sent yesterday to the clerk of the New York State Court of Appeals.

ERIC SCHNEIDERMAN CHALLENGES OBAMA ADMINISTRATION OVER MORTGAGE INVESTIGATIONS

WASHINGTON — New York Attorney General Eric Schneiderman has privately criticized the Obamaadministration and the Department of Justice for not aggressively investigating dodgy mortgage dealsthat helped trigger the financial crisis, according to senators and congressional aides who met with him this month.

New York’s top prosecutor is co-chair of the administration’s year-old Residential Mortgage Backed Securities Working Group, an initiative that President Barack Obama called for in his State of the Union address last year. In a sign of Schneiderman’s importance to the group, the White House seated him behind Michelle Obama during the speech.

Schneiderman, a Democrat who has attempted to investigate Wall Street, expressed his frustrations with the administration earlier this month during private meetings with Democratic senators on Capitol Hill, arguing that he was “naive” when he first entered into the partnership with the Justice Department, lawmakers and their aides said.

Critics of Schneiderman’s collaboration, which came in exchange for his assent to a national mortgage settlement, warned at the time that the attorney general was being played. His recent criticisms of theadministration may renew allegations that he, too, has compiled a lackluster enforcement record.

Rest here…

NY AG ERIC SCHNEIDERMAN: MORTGAGE TASK FORCE EYEING BROADER SUITS

One year after President Obama launched a new task force to investigate fraud during the subprimemortgage crisis, a co-chair of the group says a desire is now growing among prosecutors for a more aggressive response to the meltdown.

New York Attorney General Eric Schneiderman says there is little question fraud played a role in the 2008 financial crisis. In October, his office filed the task force’s first case, a civil suit alleging “a systemic fraud on thousands of investors” by JPMorgan Chase between 2005 and 2007.

As FRONTLINE reported in The Untouchables, the case also marked the government’s first major fraud suit against a Wall Street bank for the crisis.

“I think what we’ve expanded and what we have done is to increase the appetite for these broader-platform cases that address systemic patterns of fraud rather than going on a deal-by-deal basis,” Schneiderman told FRONTLINE correspondent Martin Smith. “I think that’s a huge step … And that’s what we are seeking accountability for, and that’s what we’ll continue to pursue.”

Schneiderman said his investigations began with the due diligence firms that banks hired to gauge the quality of loans they were buying and packaging into mortgage-backed securities. “We found in several cases that we brought already — and we have other investigations under way — it was a sham,” he said.

This is the edited transcript of an interview conducted on Dec. 4, 2012:

Read it here…

The Brian Lehrer Show: NY AG On Suing JP Morgan Chase (October 17, 2012)

Eric Schneiderman, New York State Attorney General and co-chair the Residential Mortgage-Backed Securities Working Group, talks about the lawsuit against JP Morgan

Here is the audio.

SCHNEIDERMAN’S N.Y.MORTGAGE PROBE SAID TO GET EXTENSION TO SUE 12 FIRMS

New York Attorney General Eric Schneiderman is looking into the mortgage securities practices of at least a dozen financial institutions that have agreed to suspend a deadline for him to bring fraud claims,according to a person familiar with the matter.

Schneiderman, who sued JPMorgan Chase & Co. (JPM) this week for defrauding mortgage bond investors, has so-called tolling agreements with 12 institutions that preserve claims that could expire during a state investigation, according to the person, who declined to be named because the matter isn’t public.

Schneiderman is the co-chairman of a state-federal taskforce that is investigating misconduct in the bundling of mortgage loans into securities in the run-up to the financial crisis. The group includes the U.S. Securities and Exchange Commission and the Justice Department, and the JPMorgan case was its first legal action.

The tolling agreements, reached this year, stop the clock on the six-year statute of limitations and ensure Schneiderman can bring civil fraud claims against banks for conduct going as far back as 2006, said theperson. The agreements don’t necessarily mean that suits will be filed, the person said.

Rest here…

Exclusive: Credit Suisse probed by DOJ, NY AG over RMBS – sources

(Reuters) – U.S. federal and state authorities are investigating Credit Suisse AG over mortgage-backed securities packaged and sold by the bank, people familiar with the probe said on Thursday.

The Justice Department and the New York Attorney General are among those probing Credit Suisse’s actions, according to the sources, who spoke on condition of anonymity.

A spokesman for Credit Suisse, Switzerland’s second-largest bank, declined to comment.

Zurich-based Credit Suisse is the second bank known to be targeted by U.S. authorities probing how banks bundled mortgage loans into securities during the U.S. housing boom.

Read on.

NEW YORK STATE ATTORNEY GENERAL ERIC SCHNEIDERMAN, DOJ, SPEAK ABOUT THE LAWSUIT FILED AGAINST JPMORGAN CHASE

Oct. 2 (Bloomberg) — New York State Attorney General Eric Schneiderman, speaks about the lawsuit filed against JPMorgan Chase & Co. for alleged mortgage fraud. Schneiderman accused the bank’s Bear Stearns unit, which JPMorgan bought in 2008, of using “depceptive” practices in selling hundreds of billions of dollars in mortgage bonds. U.S. Attorney for the District of Colorado John Walsh, U.S. Department of Housing and Urban Development Secretary Shaun Donovan, Assistant Attorney General Lanny Breuer and Acting Assistant Attorney General Tony West also speak at the news conference in Washington. (Source: Bloomberg)

Here is the video.