Go Get'em General Coakley

I was thrilled to see Massachusetts AG Martha Coakley file a lawsuit against five major banks and MERS for their egregious and fraudulent behavior in foreclosing on homeowners: http://www.mass.gov/ago/news-and-updates/press-releases/2011/five-nation....

For a year now, a good faith effort by multiple Attorneys General to negotiate a fair settlement with these banks has been met with resistance, stonewalling and a reckless failure to recognize all the damage they've done to American homeowners. As much as I admire the AGs leading the effort to bring important and necessary relief to long-suffering homeowners and devastated communities, these negotiations were fundamentally  hindered by the banks' belief that they would not be forced to pay a tougher price for failing to reach a reasonable settlement. With yesterday's action, AG Coakley and her staff proved that belief misguided and significantly raised what's at stake for the banks.

Now let's see what the Massachusetts AG's office finds when they get an even closer look at the banks' records. It's my guess that it won't be pretty and the cost of a multi-state resolution for the banks just got considerably more expensive. Thank you, Martha Coakley!

Written by Executive Director, Ira Rheingold, National Association of Consumer Advocates