Obama's New RMBS Investigation Unit Takes Shape

The special mortgage investigation unit announced by President Obama during his State of the Union address Tuesday night has taken shape.

The new Residential Mortgage-Backed Securities (RMBS) Working Group will operate within the Financial Fraud Enforcement Task Force. The president has tasked the group of federal and state investigators with uncovering those responsible for pooling and selling RMBS that contributed to the financial crisis.
At a press conference announcing the formation of the new task force Friday, U.S. Attorney General Eric Holder touted recent actions taken by his organization, the U.S. Justice Department, which as part of this effort, issued civil subpoenas to 11 financial institutions this week as a result of ongoing investigations into their RMBS dealings.
“[Y]ou can expect more to follow,” Holder told reporters, adding that the new RMBS Working Group has considerable DOJ resources behind it as it builds on activities that have been underway through the broader Task Force.
Currently, 15 attorneys, investigators, and analysts from the Justice Department and U.S. Attorneys’ Offices have been designated as part of the RMBS Working Group. The FBI has assigned 10 agents and analysts to the group, and in the coming weeks, another 30 attorneys, investigators, and support staff from U.S. Attorneys’ Offices will join the team.
The group will work closely with state and federal organizations that are investigating similar misconduct under their own authorities, according to Holder.
The Working Group held its first full meeting following the press conference Friday morning, but Holder says the co-chairs – which include New York Attorney General Eric Schneiderman and Robert Khuzami, director of enforcement for the Securities and Exchange Commission, as well senior officials at the DOJ – have already met to discuss the structure of the group’s investigations, organizational details, and communication efforts.
The RMBS Working Group “will be able to hit the ground running,” according to Holder.
“I can assure you that, if we uncover evidence of fraud or other illegal conduct, we will bring the appropriate criminal or civil charges,” he said.