New York Attorney General Eric Schneiderman says there is a desire among prosecutors to respond more aggressively to the 2008 sub-prime mortgage meltdown. This was after President Obama launched a task force to investigate fraud during the meltdown. The first case filed by the new task force was filed against JP Morgan Chase claiming “a systematic fraud on thousands of investors between 2005 and 2007.” Schneiderman stated he started with due diligence firms that determined the quality of loans that the banks were buying and putting into mortgage-backed securities. He said it was a sham.
Schneiderman told FRONTLINE correspondent Martin Smith, “I think what we’ve expanded and what we have done is to increase the appetite for these broader-platform cases that addressed systematic patterns of fraud rather than going on a deal-by-deal basis. I think that’s a huge step…And that’s what we are seeking accountability for, and that’s what we’ll continue to pursue.”