Obama Administration Wants Schneiderman to Lay Off Banks a Little

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Schneiderman.Photo: Michael Nagle/Getty Images

New York's attorney general, Eric Schneiderman, among others, is against a proposed settlement reached with several large banks over questionable foreclosure practices, like robo-signing. Schneiderman believes the terms of the deal would hinder his ability to fully investigate whether banks acted illegally in bundling mortgage-backed securities; the Obama administration is reportedly pressuring him to just move on. A spokesman said the administration simply wants a monetary settlement in the hands of the wronged homeowners as soon as possible, so surely the pressure has nothing at all to do with trying to mend Wall Street fences in advance of election fund-raising. [NYT]