Obama Falls Flat on Mortgage Fraud

    GLENDALE, CA - SEPTEMBER 15:  A for sale sign is posted in front of house on September 15, 2011 in Glendale, California. Foreclosures spiked as mortgage default notices filed by banks climbed 33 percent between July and August, the biggest single-month increase in four years. (Photo by Kevork Djansezian/Getty Images)

    Kevork Djansezian

    The Obama administration has talked a good game about prosecuting mortgage fraud, but has done little to demand actual change on Wall Street. David Dayen from Salon reports that a “task force” set up to examine problems in the packaging of residential-mortgage-backed securities during the bubble years isn’t the independent organization it claims to be. “There are no offices, no phones, and no staff dedicated to the non–task force,” Dayen writes. Instead, the “Financial Fraud Enforcement Task Force” is essentially a “press release” factory that secretly piggybacks on existing litigation efforts. The president failed to so much as mention the task force in his State of the Union. A telling fact: he has many things on his plate—this doesn’t seem to be one of them.

    Read it at Salon