Tag: Eric Schneiderman

The surprise announcement by President Barack Obama that he was appointing New York State’s Attorney General Eric Schneiderman to head a new group, the Residential Mortgage-Backed Securities Working Group, that would be investigating securities fraud from the housing bubble and financial crisis. The announcement elicited some interesting reactions from the President’s supporters and critics expressing both praise and doubt about the new committee and just how much force it would really have considering the other appointees to the panel. Public opinion seems to be that few if any of the real perpetrators of the housing bubble and financial crisis have been held accountable.

On Friday, the group held its first press conference. US Attorney General Eic Holder, along with Mr. Schneiderman and Housing Secretary Scott Donovan, explained the purpose of the group, on what it would be focusing some of its powers and announced it had already issued 11 subpoenas:

“We are wasting no time in aggressively pursuing any and all leads,” Mr. Holder said. “In sending out those subpoenas, we consulted with the S.E.C. in making a determination as to where they should go.” Officials would not say which companies received the subpoenas.

“We are not going to be looking at the same things they are examining,” he added. “We’re going to be working with them but looking at a separate group of institutions.”

Schneiderman added that by working together with the SEC, IRS and Justice Department state Attorneys Generals would give them more information with which to bring prosecutions and civil suits at the state level:

In addition, the New York State Martin Act, which gives the attorney general broad powers to elicit information during investigations, “is more flexible than federal securities laws,” Mr. Schneiderman said. The New York and Delaware attorneys general also have jurisdiction over the trusts that hold the mortgages that underlie the mortgage-backed securities, making them “the bricks and mortar of this entire structure.”

By coordinating their efforts, group members might be able to share documents and information that usually would be in individual agency silos, Mr. Holder said.

Friday evening, Schneiderman sat down for an interview with MSNB’s Rachel Maddow, where he further discussed the committee’s focus, the agencies that would be involved and the roll of the states. Dayen, who still has strong reservations about the RMBS working group, thinks that the group lacks serious substance mostly because the use of wording like “resolving allegations”, not “crimes” and the lack of supporting staff and the appearance of disinterest by Assistant Attorney General for the Criminal Division Lanny Breuer who was absent at the press conference. However, he does see some promise. In the past, the IRS was reluctant to get involved, but as David Dayen at FDL News Desk indicated there could be huge tax fraud implications:

But I want to pull out the sentence I highlighted previously in Schneiderman’s interview which shows that at least he is thinking creatively about this. He said that “We have the Internal Revenue Service in because there are huge tax fraud implications to some of the stuff that went on.” I suppose he could be talking about a few different things (like the tax evasion from the banks using MERS instead of recording mortgage transfers at public records offices and paying a fee), but my guess is he’s talking about REMIC claims.

REMICs are an acronym for Real Estate Mortgage Investment Conduits. When you’re talking about mortgage pools used in securitization, you’re talking about REMICs. And REMICs have special tax treatment; they are exempt from federal taxes provided they only invest in “qualified mortgages” and other permitted investments. Here’s the important part: under the 1986 Tax Reform Act, the REMIC must receive all of its assets in the trust within 90 days and the assets have to be performing (not in default). Any REMIC violations make the vehicle subject to a penalty tax of 100%, with additional penalties as they apply.

Well, the strong suspicion is that, during the bubble years, the trustees did not properly convey the mortgages to the REMICs. Which makes the whole investment vehicle a massive tax fraud. That’s a huge level of exposure. You’re talking about $3 trillion in REMICs.

This obviously goes much deeper than fraud.

I became Attorney General about a year ago and started digging into this, and realized that New York and Delaware, which is why my collaboration with Beau Biden was so important, we had a unique place. Because all of the mortgage-backed securities were actually pools of mortgages deposited into New York trusts or Delaware trusts. We started looking at what she’s talking about, did they actually get all the paperwork done, things like that. And we realized that there’s a lot of work to do but a lot of potential for proving liability. [..]

To get this done Rachel, you need resources, you need jurisdiction, and you need will. And when I stood there today with Eric Holder and my other colleagues in government and other prosecutors, I really felt that we had that level of commitment […] what we realized as we started to go back and forth over the last few months is that we all need to work together. There are situations that, New York’s securities law is a stronger law in some ways than the federal laws. Some of our statutes of limitations, though, are shorter. So we can’t go as far back. The federal statute is longer. We need everyone together. And the folks that we have in on this… the Consumer Financial Protection Bureau, Rich Cordray just, a whole array of new powers just came into existence with his appointment, which the President just got done very recently. That’s a huge addition. We have the Internal Revenue Service in, because there are huge tax fraud implications to some of the stuff that went on. All of the people who are in this, all of the agencies who are designated, working together, can achieve so much more than any one of us on our own.

h/t David Dayen for the transcript.

There is still a lot of doubt about this commission and it’s purpose and goals. Matt Stoller at naked capitalism is curious to know if this panel will indict Vikram Pandit, the CEO of Citibank, for possible violations of Sarbanes-Oxley. He sees two problems with this task force. The first is the Obama administration’s policy “to protect the banking system’s basic architecture, which means the compensation structure and the existing personnel who run these large institutions.” And secondly:

Obama personally believes in the legitimacy of the existing banking institutional framework and he strongly suspects that no crimes were committed.  He has hired a raft of people – including Jack Lew, Tim Geithner, Eric Holder, Larry Summers, and so on and so forth – who agree, and has implemented policies such as Dodd-Frank that assume as much. [..]

These people aren’t stupid, they aren’t without principles, and they aren’t electorally driven.  They are ideologues.  They really believe in a neoliberal political economy, where government throws money at the economy through private channels and private channels do with it whatever they think best.

That’s quite a conflict of ideologies. Stoller concludes with more questions and doubts:

There are many details of the task force that are as of yet not public, so it is not clear to me that doing a case like this is possible.  But it’s quite obvious that mega-bank officials and regulators lying about the perilous state of various financial institutions to the public was a key part of the crisis, and that accountability on this front is probably critical to restoring faith in the system.  It would certainly be a big statement upfront if this is what this task force attempted to take on.  Will it?  That’s a very good question, and one I hope we get answers to, soon.

Here’s hoping that this isn’t just an election year sham and Eric Schneiderman has the will to stand up to the Obama neoliberals.  

While there are there are many reasons to cheer President Obama’s announcement during his State of the Union address that he was forming a special unit within the Financial Fraud Task Force to investigate the fraud and other illegalities that caused the financial crisis and collapse of the housing market, there are plenty of reasons to be very skeptical.

The unit will be co-chaired by New York Attorney General Eric Schneiderman who withdrew from the DOJ panel of state attorney generals that was working on a settlement with the big banks over their part in mortgage fraud. That’s about all the good news there is. The other members of the unit are Lanny Breuer, assistant attorney general at the Criminal Division of the Department of Justice, Robert Khuzami, director of enforcement at the SEC; John Walsh, a U.S. attorney in Colorado, and Tony West, assistant attorney general in the Civil Division at DOJ.  Also, the And there in lies the farce of this unit.

Lanny Breuer, along with Attorney General Eric Holder, was partner in the Washington DC law firm Covington & Burling that represented a number of big banks and MERS which are at the center of alleged foreclosure fraud. He recently appeared on “60 Minutes” making numerous lame excuses justifying the lack of prosecutions out of the Justice Department. Despite the evidence, including records from federal and state courts and local clerks’ offices around the country, showing widespread forgery, perjury, obstruction of justice, and illegal foreclosures on the homes of thousands of active-duty military personnel, the Holder DOJ has not brought any criminal cases against big banks or other companies involved. There is a clear conflict of interest and possible ethics violations.

The director of enforcement of the SEC is another embarrassment. Robert Khuzami, a former general counsel at Deutsche Bank, one of the leading trustees in securitization, will no be looking into the instruments of the fraud he helped create. It has been Khuzami’s office that has been giving the banks no-fault settlements which recently were rejected by U.S. District Judge Jed S. Rakoff.

U.S. Attorney in Colorado, John Walsh, is most notable for justifying the crackdown on medical marijuana dispensaries in that state. He doesn’t appear to have any experience in prosecuting banking fraud.

The last unit member is Tony West, the brother-in-law of California’s Attorney General, Kamala Harris who like Schneiderman withdrew from the DOJ agreement because it was too little and didn’t hold the banks or companies libel. West, a lawyer with a Oakland, CA law firm and a former US attorney, appears to have little experience with financial fraud.

Is this really the way to do this? Why not create a Special Prosecutor with the budget and subpoena power rather than a committee within a task force that has done minimal in the last three years to investigate fraud? Both David Dayen at FDL News Desk and Yves Smith at naked capitalism think that Schneiderman is being used for a charade that would eventually let the banks get away with fraud anyway. But is Schneiderman that easily misled or dazzled by Obama’s offer? He certainly didn’t sound like he was going to end his state level investigation in this release from his office:

I would like to thank President Obama for his leadership in the creation of a coordinated investigation that marshals state and federal resources to bring justice for the victims of the misconduct that caused the mortgage crisis.

In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the economic crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again.

The American people deserve a robust and comprehensive investigation into the global financial meltdown to ensure nothing like it ever happens again, and today’s announcement is a major step in the right direction.

(emphasis mine)

Considering who has run the Treasury, the revolving door of bankers in the Oval Office and Obama’s weak efforts in investigating or prosecuting any person or entity that would ruffle the feathers of his Wall St. contributors over the last three years, there is a whole lot of reason to be doubtful about the president’s sincerity or any future hope of substantial relief for homeowners.

New York State attorney General Eric Schneiderman and Steve Linick, the inspector general supervising Fannie and Freddie and the Federal Housing Finance Agency (FHFA) have joined forces giving the NY AG access to documents and depositions taken by the FHFA Office of Inspector General as part of its investigation into mortgage and securities fraud perpetrated against Fannie and Freddie. As Yves Smith at naked capitalism points out this is a “well deserved slap in the case to the Department of Justice”:

I’m not certain of the precise scope of powers of the FHFA inspector general. But typically, federal inspector generals have limited scope of action. They can only subpoena documents and cannot subpoena witnesses. And, of course, they are not prosecutors and cannot launch cases. The theory of IGs is that if they uncover something unsavory, they’ll hand it off to the Department of Justice. But as a former IG has pointed out, the DoJ does not take case leads from the IGs unless they are fully fleshed out, and that is well nigh impossible to do in the absence of speaking to witnesses.

The Department of Justice has AWOL on the mortgage and banking beat, no doubt to avoid ruffling powerful possible Obama donors. Inspectors general are in theory independent, and on top of that, the FHFA is an independent agency and is not running the Administration playbook (I’ve been told by people involved in bank regulation that Geithner has tried pressuring FHFA acting chief DeMarco to no avail).

So what does the FHFA inspector general do, certain that Eric Holder will ignore any misdeeds he finds? Turn to another prosecutor who can bring cases that can bring cases that are national in scope.

According to Shahien Nasiripour writing for the Financial Times this alliance could “make it easier for authorities to bring fraud charges against Wall Street companies”.:

Investigators will be able to share documents and findings, and pool resources, according to people familiar with the co-operation agreement. It was signed in recent weeks by Eric Schneiderman, New York attorney-general, and Steve Linick, the inspector general supervising Fannie and Freddie as well as the Federal Housing Finance Agency , the regulator responsible for the two taxpayer-owned home loan financiers.

The collaboration escalates Mr Schneiderman’s probe of about a dozen banks and mortgage insurers as part of a broad investigation into whether banks properly bundled hundreds of billions of dollars worth of home loans into now-soured securities sold to investors.

The New York attorney-general is armed with the state’s Martin Act, considered one of the most powerful prosecutorial tools in the country. The law allows Mr Schneiderman to investigate anyone doing business in New York and to bring cases without having to show that the accused intended to commit fraud. State prosecutors need only prove that a fraud was committed, which state courts have defined as “all deceitful practices contrary to the plain rules of common honesty”.

The law allows Mr Schneiderman to pursue civil and criminal probes, and to seek felony criminal convictions. The Martin Act confers broader powers than federal securities laws used by agencies like the US Securities and Exchange Commission, which must show intent when bringing fraud cases. Previous New York prosecutors such as Eliot Spitzer have wielded the law to extract billions of dollars from Wall Street firms for alleged wrongdoing.

In conjunction with with lawsuits from Delaware’s Beau Biden, Massachusetts’ Martha Coakley and Nevada’s Catherine Cortez Masto, this is really great news. As David Dayen at FDL says “this is an end run around the justice department”:

Recall that Linick has recently come out with some explosive reports, including a report that the GSEs know about foreclosure fraud back in 2003. So that’s a wealth of knowledge from which to draw, and the IG can compel some more of it, though as said above they are somewhat limited. If Schneiderman sought these documents and depositions by himself, federal regulators could have overruled him. Now he can just use Linick as a conduit.

The FHFA, over which Linick monitors, sued 17 banks for securities fraud earlier this year. So you’re almost seeing a consolidation of lawsuits and actions between Schneiderman and a rogue independent housing agency. It’s really nice to see.

Another step in getting justice for homeowners.

Some members of Congress have begun to make noise about the proposed settlement of foreclosure fraud by some state attorney generals that would give immunity to the banks. David Dayen at FDL reports:

Raul Grijalva and Keith Ellison, co-chairs of the Progressive Caucus, are the latest. It’s pretty hedged, however:

   “We applaud President Obama and the Justice Department for this effort to hold these banks accountable. However, a $25 billion settlement pales in comparison to the trillions of dollars in lost home equity, retirement savings and exploding public debt caused by these institutions,” Grijalva and Ellison said Friday in a joint statement.

   “Instead of immunity for Wall Street banks, let’s stand with the American people and demand a fair deal for homeowners.”

Dayen also makes a couple of salient points about the problems with this settlement and solutions:

The whole gambit just reinforces the randomness of the foreclosure crisis. Borrowers didn’t choose to get a bank-owned loan, or a loan sold to Fannie and Freddie, or a loan securitized and sold as part of a tranche of securities to a pension fund in Norway. But where their loan landed has a direct bearing on their outcomes. Who services their loan, another outcome under which they have no control, also matters. And what state you live in matters. If you’re in Nevada, for example, you may never face foreclosure no matter what your delinquency situation [..]

Just criminalizing the standard law governing foreclosures in Nevada has basically ended foreclosure starts. Lucky for Nevadans – but why are folks in the rest of the country in a different place? For all the talk of moral hazard, there’s nothing moral about the foreclosure process right now. If there were, there may also be something like justice or accountability.

The New York and Maryland Attorney Generals, Eric Schneiderman and Beau Biden lay out their strategy in dealing with what they see as a two pronged man-made mess, the housing market and the mortgage-backed securities market:

These two markets are inextricably linked. Any real effort to repair the damage caused by the collapse of the housing bubble must address the injury in both sectors. Tens of millions of homeowners and millions of investors – including retirees with money in pension and mutual funds – were devastated by this manmade catastrophe.

We recognized early this year that, though many public officials – including state attorneys general, members of Congress and the Obama administration – have delved into aspects of the bubble and crash, we needed a more comprehensive investigation before the financial institutions at the heart of the crisis are granted broad releases from liability.

We undertook such an inquiry, building on the work of many others. And we know time is of the essence. Homeowners and investors are suffering every day, and patterns of abuse and misconduct are continuing. We’re working hard to complete the first – and most critical – phase of our investigation before the end of 2011.

The key to our strategy to root out the conduct that triggered the biggest financial crisis since the Great Depression is recognizing that a comprehensive effort requires an attack from both sides – looking at harm both to borrowers and to investors. So we are investigating four distinct, but interdependent, areas of abuse. Only one of those areas is being discussed in the negotiations now under way among the banks, the administration and some of our colleagues.

These determined AG’s explain that they are investigating several areas:

They conclude that while their AG colleagues “seek to settle these servicing-related issues, the financial institutions on the other side of the negotiating table have predictably sought releases that are as broad as possible from future liabilities, delaying the process.”

Biden and Schneiderman state that they support the effort but they are not going to back down on the criminal investigation of securitization, origination and MERS:

Reforming the servicing of mortgages is crucial. But these servicing abuses did not create the mortgage bubble. Robo-signing did not blow up the U.S. economy. Rather, these are symptoms of a more far-reaching and insidious problem.

The American people deserve a full investigation and public exposure of the conduct that got us into the economic quagmire we face today. We must ensure that it never happens again. And we must restore public confidence that ours is a nation committed to the goal of equal justice for all.

Every American deserves due process before their homes are taken form them that is just not happening for far too many. There is no excuse.

The Obama administration is about to screw Main St. one more time by letting the banks get away with mortgage and foreclosure fraud with a pittance of a fine and indemnifying the banks from state-level prosecution for a series of crimes at practically all stages of the mortgage process. It has been pointed out that by not enforcing the law, which includes investigating and prosecuting fraud, Barack Obama is in violation of his oath of office. Remember? The one he took on front of a rapt nation on the steps of the Capitol where he swore to up hold the Constitution and Law. I don’t recall any part of that oath including letting the banks get away with bringing the US economy to its knees through fraudulent practices.

Cutting to the chase: if you thought this was the deal that would hold banks accountable for filing phony documents in courts, foreclosing without showing they had the legal right to do so and generally running roughshod over anyone who opposed them, you are likely to be disappointed.

This may not qualify as a shock. Accountability has been mostly A.W.O.L. in the aftermath of the 2008 financial crisis. A handful of state attorneys general became so troubled by the direction this deal was taking that they dropped out of the talks. Officials from Delaware, New York, Massachusetts and Nevada feared that the settlement would preclude further investigations, and would wind up being a gift to the banks.

It looks as if they were right to worry. As things stand, the settlement, said to total about $25 billion, would cost banks very little in actual cash – $3.5 billion to $5 billion. A dozen or so financial companies would contribute that money.

The rest – an estimated $20 billion – would consist of credits to banks that agree to reduce a predetermined dollar amount of principal owed on mortgages that they own or service for private investors. How many credits would accrue to a bank is unclear, but the amount would be based on a formula agreed to by the negotiators. A bank that writes down a second lien, for example, would receive a different amount from one that writes down a first lien.

Sure, $5 billion in cash isn’t nada. But government officials have held out this deal as the penalty for years of what they saw as unlawful foreclosure practices. A few billion spread among a dozen or so institutions wouldn’t seem a heavy burden, especially when considering the harm that was done. {..}

The deal being discussed now may also release the big banks that are members of MERS, the electronic mortgage registry, from the threat of some future legal liability for actions involving that organization. MERS, which wreaked havoc with land records across the country, was sued last week by Beau Biden, Delaware’s attorney general, on accusations of deceptive trade practices.

The MERS registry was also subpoenaed last week by Eric Schneiderman, the attorney general of New York, as part of his investigation into the fun-while-it-lasted mortgage securitization fest. If he were to sign on to the settlement, his investigation into MERS could not move forward.

Angry yet?

Morgenson highlights another feature of the plan:

   One of the oddest terms is that the banks would give $1,500 to any borrower who lost his or her home to foreclosure since September 2008. For people whose foreclosures were done properly, this would be a windfall. For those wrongfully evicted, it would be pathetic. Roughly $1.5 billion in cash is expected to go into this pot.

“Pathetic” isn’t strong enough. Let’s look at the damages sought by Nevada attorney general Catherine Masto in her second amended complaint against Bank of America: civil penalties of $5000 per violation, or $12,000 for elderly or disabled borrowers. An individual loan can, and likely does, have multiple violations. The suit also seeks restitution, costs for wrongful foreclosures, plus the cost of damage to municipalities and homeowners from unnecessary vacancies. Note that an AG victory on the issue of wrongful foreclosure would pave the way for private lawsuits, and here the damages would be massive, particularly if state law or precedent allows for penalties (as we’ve noted, Alabama has statutory tripe damages for wrongful foreclosure, and recent rulings have had applied penalties in excess of nine times).

And what did Masto get from a different servicer, Morgan Stanley’s Saxon? The settlement is estimated to average somewhere between $30,000 and $57,000 per borrower. And the basis of action wasn’t erroneous or fraudulent foreclosures, but deceptive practices in mortgage lending and securitization.



Look at the MERS compplaint filed by Delaware AG Beau Biden. He’s suing MERS over deceptive practices, at $10,000 per violation. It’s quite possible that he may find more than one violation per mortgage. And I would imagine that success against MERS would pave the way for actions against servicers who relied on MERS in the face of knowledge of its deficiencies.

In other words, the suits filed by two AGs alone make a mockery of these negotiations.

So, how much are the banks contributing to the president and the attorney generals who are going to try to let them off the hook?  

This is how foreclosure fraud should be handled on the federal level and is not. It’s not that hard.

New York Attorney General Eric Schneiderman has received a lot of the headlines for his no-holds-barred investigations against the banks, but he’s had a partner in Delaware’s Beau Biden. Because New York and Delaware were where most of the securitization trusts were originated, having a united front on this issue of fraud is vital, and despite the family ties with the White House, Biden has been uncompromising. His latest salvo is a lawsuit against MERS, the electronic registry owned and funded by the banks, which they used to evade the public land transfer system and save money on county recorder fees:

“    The Delaware attorney general’s office sued Merscorp Inc., which runs a national mortgage registry used by banks, saying its practices are deceptive and hide information from borrowers.

   The MERS database, which tracks ownership interests in mortgages, obscures information from borrowers and impeded their ability to fight foreclosures, Delaware Attorney General Beau Biden said in a complaint filed today.

   “MERS engaged and continues to engage in a range of deceptive trade practices that sow confusion among consumers, investors and other stakeholders in the mortgage finance system, damage the integrity of Delaware’s land records, and lead to unlawful foreclosure practices,” Biden said. “

(Reuters) – MERS, the electronic mortgage registry used by the banking industry, was sued by Delaware on Thursday and accused of deceptive practices that led to unlawful shortcuts in dealing with the foreclosure crisis.

New York’s attorney general also took action against MERS, subpoenaing the registry this week for information about how it is used by major banks and a foreclosure law firm, a person familiar with the matter said on Thursday.

The suit and subpoena were part of a joint New York-Delaware mortgage probe, the person told Reuters.[…]

Schneiderman’s subpoena also seeks information on Amherst, New York, foreclosure law firm Steven J. Baum, which the attorney general has been probing since at least last spring.

Lauren Passalacqua, a spokeswoman for the New York attorney general’s office, declined to comment.

   The damages sought are substantial, $10,000 per violation. Since MERS is a tiny company, with under 50 employees and many of its operations outsourced (and no reason for it to maintain a substantial balance sheet), success in court would almost certainly mean bankruptcy for MERS. In theory, a new consortium or private investors could buy the database out of bankruptcy, but how would one structure its operations so as to not run afoul of the law? Yet with so many mortgages recorded in the MERS database (the registry has claimed over 60 million) the banks will need to find a way to keep it going and operate it more in line with the law […]

   Unless MERS gets injunctive relief, these two provisions effectively stop foreclosures in MERS’s name in Delware. MERS has repeatedly said it does not hold any interest in the property or note in depositions. And the mortgage registry system had also quietly put out a notice to members months ago telling members to stop foreclosing in the name of MERS. Not allowing MERS members (servicers, banks, and their foreclosure attorneys) to assign mortgages out of MERS will stop the foreclosure apparatus cold. This is a legitimate legal strategy to get a foreclosure freeze and force the servicing industry to the table to negotiate a much bigger fix.

If only the US Attorney General had this agenda.

Accord With Comptroller Will Help Attorney General Pursue Corruption Cases

By Nicholas Confessore

Attorney General Eric T. Schneiderman and Thomas P. DiNapoli, the state comptroller, have entered into an agreement that will grant Mr. Schneiderman powers to criminally prosecute corruption involving taxpayer money, significantly expanding the attorney general’s authority to pursue public integrity cases.

Under the agreement, the comptroller and the attorney general will establish a joint task force on public integrity. Mr. Schneiderman’s prosecutors will work with Mr. DiNapoli’s investigators and auditors looking into legislative earmarks, state pensions and government contracts.

But in a twist, Mr. DiNapoli has also agreed to employ a little-known provision of state law to refer any findings from joint investigations to Mr. Schneiderman for criminal prosecution.

“We’ll coordinate our respective roles to uncover and prosecute government waste, fraud and abuse,” Mr. DiNapoli said in a statement. “This is a powerful message: New York’s two independently elected oversight officials are partnering together to ensure integrity and accountability to every level of government in New York State.

snip

“It could be a very effective approach,” said Eric R. Dinallo, who headed the securities bureau in the attorney general’s office under Eliot Spitzer and was later superintendent of the State Insurance Department. “If you can’t get legislative relief around ethics issues in government and you’re trying to get jurisdiction, sometimes the law has all the jurisdiction you need – if you look at it in a creative way.”

Good work, gentlemen, and much success.

Note: from Progressive Blue and cross-posted at DailyKos.

In the quest to maintain a Democrat majority it seems easy to overlook the race for New York State Attorney General. Considering a powerful social and economic justice policy position where the jurisdiction includes Wall Street and the traditional influence this office has had over media and talk shows it’s not about majority but justice vs. injustice.

Now Eric Schneiderman who is committed to “protecting homeowners and consumers from bad actors on Wall Street” faces a Republican who has suggested that he would “de-emphasize the high-profile securities fraud cases that defined the tenures of Attorney General Andrew M. Cuomo and Eliot Spitzer.” In a nation where the banking lobbyist induced false claim that “sound economics means hands off Wall St.” is too often heard, think back the early 1990’s when nobody seemed interested in the big money crimes and Eliot Spitzer did much to change the national focus.

But Senator Schneiderman represents so much more that that. Not just a politician but a public servant with the energy and willpower to fight for the people. Looking at what this man has to offer in this high profile office with the power to steer the national debate, it seems obvious that a NY loss would be a setback for all Americans.