The lawsuit alleges that employees for the three banks — Bank of America, Wells Fargo and JP Morgan Chase — filed false and misleading foreclosure actions in New York and federal courts using the controversial Mortgage Electronic Registry System, undermining the state’s foreclosure process and public records system.
Last week, President Obama named Schneiderman to help lead a new effort by federal and state authorities investigating the run-up to the financial crisis. The joint federal and state initiative, which Obama announced in his State of the Union speech, could seek criminal charges for financial executives, something liberal activists have long pushed for.
