Going After Wall Street

Statement by AFL-CIO President Richard Trumka

On New York Attorney General Schneiderman’s Lawsuit Alleging That Bear Stearns Fraudulently Issued Mortgage-Backed Securities

October 2, 2012

In an era when the rich and powerful line their own pockets at the expense of workers, homeowners, and investors, New York State Attorney General Eric Schneiderman is striking a blow for accountability and equal justice. We applaud the lawsuit that Attorney General Schneiderman filed alleging that the former investment bank Bear Stearns created fraudulent mortgage-backed securities. The facts alleged in this case suggest an industry-wide pattern of wrongdoing that may result in billions of dollars in bank liabilities after the dust settles. We welcome and encourage the continued support of the Obama Administration, the Justice Department, and bank regulators in providing resources to aid these cases.

Our economy will not fully recover until law and order is restored to our banking system. It is not an exaggeration to say that today’s jobs crisis can be traced back to the collapse of the Wall Street-driven housing bubble, and the mortgage-backed securities fraud that Schneiderman has alleged.

Statement online here: http://www.aflcio.org/Press-Room/Press-Releases/Statement-by-AFL-CIO-President-Richard-Trumka-On-New-York-Attorney-General-Schneiderman-s-Lawsuit-Alleging-That-Bear-Stearns-Fraudulently-Issued-Mortgage-Backed-Securities