President Obama Announces Banks Will Not Escape Investigation and Prosecution

Washington, D.C. — Robert Borosage, co-director of the Campaign for America’s Future, lauded President Barack Obama’s announcement that he is launching an investigation of the big banks on mortgage-related fraud. Hundreds of thousands of concerned Americans signed petitions that went to the President asking for this investigation. This is a victory for those activists and for the American people.

Statement from Robert L. Borosage, co-director of the Campaign for America’s Future:

“After months of troubling rumors that the White House was urging state attorneys generals to hold banks blameless – and after months of protests by concerned Americans – the President is doing the right thing by announcing an investigation of the big banks. We hope news reports are true that he is putting Attorney General Schneiderman in charge of the investigation. It would demonstrate he is serious about investigating the banks.

“Americans from across the political spectrum are angry that the Wall Street banks blew up the economy and got bailed out, while homeowners and taxpayers were stuck with the bill. The bankers that put this economy at risk and hurt millions of homeowners need to be held accountable.

“Hundreds of thousands of concerned Americans signed petitions that went to the President asking for this investigation. This is a victory for those activists and for the American people.”

“What the people want is clear: Penalize the perpetrators, not their victims. Any settlement must have sufficient scope to deal with the scale of the problem.

“It is vital to this country that the banks are made accountable. It is vital that they do not see the law as simply a minor price of doing profitable business, a speed bump on the way to their bonuses. Tonight the President announced a strong step towards the accountability that we need.

“I want to laud President Obama for starting this investigation. And we hope that news reports are true that he plans to choose Attorney General Schneiderman – who has bravely refused to accept a deal that protected the banks from prosecution — to lead this investigation into the foreclosure crisis. His appointment to lead the Justice Department investigation would put a champion in charge – and would the whole effort tremendous credibility.”