Protecting Big Money for Political Gain

Eric T. Schneiderman, the attorney general of New York, has come under increasing pressure from the Obama administration to drop his opposition to a wide-ranging state settlement with banks over dubious foreclosure practices, according to people briefed on discussions about the deal.

In recent weeks, Shaun Donovan, the secretary of Housing and Urban Development, and high-level Justice Department officials have been waging an intensifying campaign to try to persuade the attorney general to support the settlement, said the people briefed on the talks.

Mr. Schneiderman and top prosecutors in some other states have objected to the proposed settlement with major banks, saying it would restrict their ability to investigate and prosecute wrongdoing in a variety of areas, including the bundling of loans in mortgage securities.
~ from Attorney General of N.Y. Is Said to Face Pressure on Bank Foreclosure Deal by Gretchen Morgenson ~

Allow me to explain this unfolding story in layman's terms.

The Attorney General of New York has been aggressively pursuing banks and Wall Street for a variety of alleged crimes, including illegal foreclosures. While I'm sure there is some political grandstanding involved, the AG also seems interested in representing the interests of the people of his state. In other words, he is doing what an AG is supposed to do.

The Obama administration is none too pleased with Schneiderman's aggressive investigations. They want the New York AG to go along with a settlement being worked out with big money -- a settlement that will pale in comparison to the amount of damage they have wrought. You know, the kind of an agreement that represents little more than a slap on the wrists that will allow them to admit no wrongdoing AND continue "business as usual."

The reason Barack Obama is trying to rein in Mr. Schneiderman is that the president wants big money to finance his reelection campaign and they will be less likely to do so if the New York AG is hauling them into court and making their lives miserable. It has nothing to with justice OR protecting the rights of the American people.