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Iowa Community Group Blasts Miller for Removal of Schneiderman from Foreclosure Committee

The booting of Eric Schneiderman from the executive committee of the 50 state AG “investigation” of foreclosure fraud is pretty funny in this context: the AGs are supposed to be undertaking an investigation. Schneiderman is one of the few AGs actively involved in just such an investigation. And so he’s the one who has to get the boot.

This shows the depravity of once-respected Iowa AG Tom Miller, who is spearheading the “investigation.” He has wanted a settlement to put these issues behind the banks from the very beginning. He wants the headlines that come with the settlement, the pot of money to show that his efforts helped homeowners, and the minimal disruption such a settlement would provide. When Miller was named the head of the “investigation,” he immediately received a windfall of campaign donations from the financial sector. He has chased a deal for almost a year, all time that could have been spent on a real investigation of the shoddy foreclosure practices of the big banks. All of these facts add up to show a representative of the people working more in line with the will of the banks.

This has not escaped the attention of Miller’s own constituents. In a scathing release today, Iowa CCI, the same group that got Mitt Romney to offer his “corporations are people” remark, lambasted Miller for the “politically motivated” removal of Schneiderman from the foreclosure group.

“Miller threw Schneiderman under the bus and as a result we’re likely to see a significantly weaker settlement,” said CCI member Judy Lonning from Des Moines. “We’re extremely disappointed. Tom has really let us down.”

“Scheiderman was the first AG to say that he wasn’t going to back down on the big banks, and he was the first AG kicked out of the investigation,” Lonning said, “There’s no question who this decision favors. It’s all about making life better for the big banks, and we expected Tom Miller to do better than this.”

I didn’t expect better from Miller for several months now. And Iowa CCI is assuming there will be a settlement at all without the participation of New York, which is almost impossible; you can’t have the settlement the banks want while not including the state with jurisdiction over Wall Street.

But it’s good that Miller is feeling the pressure at home. And Iowa CCI is connecting the removal of Schneiderman from the executive committee to the pressure put on him by the Obama Administration to agree to a global settlement.

“Obama wants a quick settlement so this isn’t a campaign issue,” Lonning said. “He seems more interested in raking in campaign donations from Wall Street than he is in winning justice for everyday people and American homeowners, and Miller’s move played right into Obama’s hands.”

“It’s a cheap political shot, made to let the big banks get back to business and put Obama back in the White House,” Lonning said, “and in the meantime, American homeowners get to sit back and watch as the greedy bankers that ruined their lives are let off the hook once again.”

Hopefully more groups in Iowa will speak out.

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David Dayen

David Dayen