Rep. Jay Inslee (D-Wash.)
Congressman Jay Inslee (D-Wash.) sent a letter to Attorney General Eric Holder on Wednesday, imploring him to conduct a full investigation of mortgage fraud related to the 2008 financial collapse.
Inslee sent the letter amid ongoing discussions of a possible multi-billion dollar settlement between the Department of Justice, state governments, and banks who were found to have engaged in fraudulent practices.
The congressman, who is also a 2012 gubernatorial candidate in Washington, urged Holder to reject “blanket immunity” and any resolution that doesn’t include a “substantial fund from which to assist homeowners.”
He claimed that the extent of the damage done by fraudulent lending practices is not yet known, and that “to stave off yet another flood of foreclosures we need tens of billions more than what is reportedly being discussed.”
The Department of Justice did not respond to a request for comment.
On Sept. 22, The Washington Post reported that discussions between the U.S. government and financial institutions alleged to have committed fraud, including Bank of America, J.P. Morgan and Wells Fargo, revolved around a multi-billion dollar deal that would free the banks from future liability.
Reports of an impending deal prompted a number of state attorneys general, including New York Attorney General Eric Schneiderman, to voice their concerns about immunity clauses and the size of the settlement.
