Attorney General Eric Holder announces the formation of the Residential Mortgage-Backed Securities Working Group, a joint federal and state initiative to investigate the mortgage-backed securities that triggered the housing market collapse and the economic recession.
President Obama first announced the initiative in his State of the Union address on Tuesday as part of his "Blueprint for an America Built to Last." By bringing together individuals from many agencies and task forces, the new task force will have greater jurisdiction and resources to accomplish their main goal of prosecuting those who abused the law by committing mortgage-backed securities violations. According to Attorney General Holder, subpoenas have already been served to key financial institutions.
Additional speakers included Commission Director of Division of Enforcement Robert Khuzami, Housing and Urban Development Secretary Shaun Donovan, and New York Attorney General Eric T. Schneiderman.