Subprime prosecutions stops foreclosures but lets goldman sachs off hook in Massachusetts

[xiamiam]

http://www.huffingtonpost.com/2009/05/12/subprime-prosecution-stop_n_202630.html#postComment


Massachusetts Attorney General Martha Coakley won a victory against the Goldman Sachs Group Monday, forcing the financial firm to cut a $10 million check to the state and pony up $50 million to help around 700 homeowners pay subprime mortgages.

"Goldman Sachs is pleased to have resolved this matter," says Michael DuVally, a Goldman spokesman, declining to comment further.

They were also pleased, no doubt, by the terms in the settlement that allowed Goldman to avoid admitting any wrongdoing. Letting Goldman off excuses what could have been criminal behavior, but it also brings relief to hundreds of homeowners and offers a roadmap to some sort of law-enforcement-driven solution where lawmakers have come up short.

Massachusetts Congressman Barney Frank, chairman of the House Financial Services Committee, said he wouldn't "second guess" Coakley's decision to settle short of criminal convictions. "I don't know what other avenues she had available, but I will say this: Getting significant relief for 700 people is very important, both for them and for the economy. Now, that's a legitimate consideration in getting it done more quickly than waiting for a couple years to go through the criminal procedure," he tells the Huffington Post.

more at link
there are 49 more state attorney generals who need to do the same thing..