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Obama Pushes New York to Settle Cheap with Banks

"Mister Cheap Is The Cheapest"

"Mister Cheap Is The Cheapest" by Paul Graham Raven on flickr

A perfect ‘who we are’ moment provided this morning by the Obama administration. From the NY Times, found at Dean Baker’s Beat the Press website:

The NYT reported that the Obama administration is pressuring Eric Schneiderman, New York’s attorney general, to agree to a settlement with the major banks over improper handling of foreclosures and mortgage servicing. The piece has this stunning statement:

“Mr. Donovan [housing secretary Shaun Donovan] defended his discussions with the attorney general, saying they were motivated by a desire to speed up help for troubled homeowners.”

A perfect Shaun Donovan craven hack moment as a bonus!

The Naked Capitalism headline puts the matter more bluntly (emphasis in original):

Corrupt Obama Administration Pressuring New York Attorney General to Support Mortgage Whitewash

It is high time to describe the Obama Administration by its proper name: corrupt.

Admittedly, corruption among our elites generally and in Washington in particular has become so widespread and blatant as to fall into the “dog bites man” category. But the nauseating gap between the Administration’s propaganda and the many and varied ways it sells out average Americans on behalf of its favored backers, in this case the too big to fail banks, has become so noisome that it has become impossible to ignore the fetid smell.

The Administration has now taken to pressuring parties that are not part of the machinery reporting to the President to fall in and do his bidding. …

Revealingly, one of the Administration’s allies said: “Wall Street is our Main Street.” And the worst is that this remark may not be a cynical Ministry of Truth pronouncement. Team Obama bears all the hallmarks of being so close to banks and big corporations that it has lost all contact with and understanding of mainstream America.

Questions? Comments? Why vote for the financiers’ president back in power? The financiers who destroyed the economy and are now coming after our hard-earned Social Security benefits?

A comment by one of Dean Baker’s readers:

Wall Street is our Main Street?
written by deanx, August 22, 2011 5:54 AM

Only a member of the Federal Reserve could say something this absurd.

We in NYS elected Mr. Schneiderman to throw a few of these crooks in jail. It is always helpful to ‘hang a few coyote skins on fence posts’ as we say in rural NYS.

I am glad to see he is working hard at that. The ‘settlement’ only settles things for a few investors. What about the mortgagees and the general principles of lawful conduct? The settlement ignores ‘all that’.

This article hopefully emboldens (New York State Attorney General) Mr. Schneiderman’s supporters, like myself.

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