Eric Holder, the U.S. Attorney General was a partner at a Washington DC firm, Covington & Burling, which represents several of the major banks according to Reuters. See article here. The law firm has represented the banks for over two decades. Therefore, I think it is fair to ask if this close association has any impact on the Justice Departments work in addressing the mortgage crisis.
Now, we have all come accustomed to the revolving door between our federal government and the private industry in DC. Whether it is former Congressional members working as lobbyist or ahem ‘historians’ for Freddie Mac. But when the top government enforcer in the U.S. Attorney General has that sort of close relationship and we have a mortgage crisis of huge
proportions, I submit that the mix is more dangerous than anything we have seen in the past.
A former Congressman may be able to persuade his or her former colleagues to pass a bill or vote against one and the effect on the folks is muted because the burden is shared across the country. But when a family loses their home, which is often that family’s only life savings, due to fraud and other illegal activity and the government fails to take action then we
have the potential for hundreds of thousands of our fellow citizens losing everything.
This is why the efforts to deal with the foreclosure crisis are so critical. No family should have been thrown out of their home using fraudulent documents. Our government including the Justice Department should be aggressively investigating and prosecuting those individuals and companies that engage in fraudulent ways. However, this may be difficult if government
officials are too close to those they are suppose to police.
Maryland residents facing foreclosure please call me today for a free consultation. Joe Githuku. 410-849-9529.
This article is provided for informational purposes only and should not be construed in any way as legal advice. This article does not create an attorney-client relationship.