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During his State of the Union address, President Barack Obama announced the formation of a Housing Task Force, officially called the Residential Mortgage-Backed Securities Working Group.  This new agency, led by New York Attorney General, Eric T. Schneiderman, will be responsible for cracking down on financial firms that have improperly bundled mortgage loans into securities for investors.  The task force will focus on Wall Street firm and large lenders. 

This is not be the first time the current administration has attempted to institute some form of investigative body to investigate or prosecute crimes related to the financial crisis.  The task force is the latest effort by the administration to address the complaints of so many homeowners and investors that the government has not done enough to hold the financial institutions accountable, or to address and correct the behavior and practices that led to the financial crisis.

Mr. Schneiderman has stated that the new task force will make a more focused, concerted and aggressive effort to address the issues.  Reportedly, 15 attorneys from the U.S. Attorney General’s Office and 10 FBI agents will join the task force staff of 30 attorneys in the investigative and prosecution efforts.  The Securities and Exchange Commission will also be involved.

The task force has already sent subpoenas to the 11 largest financial institutions, which as of today remain undisclosed. More subpoenas are expected.

—Craig I. Kelley, West Palm Beach Bankruptcy Attorney of Kelley & Fulton, P.L., represents individual and business debtors and creditors in Chapter 7, 11, 12, and 13 proceedings. He is A.V. rated by Martindale-Hubbell directory, which is the highest rating as voted on by his peers in the legal profession. He is an Adjunct Professor of Bankruptcy Law at Palm Beach Community College and lectures nationally on the subject. You can get more information about bankruptcy from an experienced bankruptcy attorney in West Palm Beach by contacting Craig I. Kelley at 561-491-1200 or by emailing info@kelleylawoffice.com.

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