The New Task Force For Investigating The Mortgage Crises Has Already Subpeonaed 11 Banks

eric holder

Attorney General Eric Holder officially announced the creation of the Residential Mortgage-Backed Securities Working Group, co-chaired by New York Attorney General Eric Schneiderman today.

The group’s aim is to look back into the past and find the root of the mortgage crises, then take proper enforcement action against those responsible.

From Attorney General Holder’s speech today:

With this new Working Group, we will marshal our civil and criminal capabilities to build on these efforts – by focusing on abuses in the residential-mortgage backed securities market. I am pleased to report that this Working Group has considerable Department resources behind it as it builds on activities that have been underway through the broader Task Force. Currently, 15 attorneys, investigators, and analysts – here at Main Justice and throughout our U.S. Attorneys’ Offices – are supporting the investigative efforts that this Working Group will be focusing on going forward. And the FBI has assigned 10 agents and analysts to work with the group immediately. In the coming weeks, another 30 attorneys, investigators, and support staff from U.S. Attorneys’ Offices will join the Group’s work.

We are wasting no time in aggressively pursuing any and all leads. In fact, as part our current investigations, the Department recently issued civil subpoenas focusing on issues related to the market for residential mortgage-backed securities to 11 different financial institutions – and you can expect more to follow.