New York Attorney General Eric Schniederman helping to launch the federal government's new financial fraud unit in Washington, D.C. on Friday after being tapped by the president to co-chair the fraud-fighting unit.
"I am confident that you will see actions in the weeks and days ahead that will demonstrate that this is going to be a very aggressive effort and with the will and the jurisdiction and the resources, I'm confident of our ultimate success," Schniederman said.
Residential mortgage-backed securities are the huge investment packages of what turned out to be near-worthless mortgages that bankrupted many investors and contributed to the nation's financial crisis.
Appearing with Attorney General Eric Holder, New York Attorney General Eric Schneiderman, a co-chair of the initiative, said the effort will link state and federal probes of the mortgage-backed securities bubble.
The collapse in value of mortgage-backed securities resulted in unprecedented losses and "all of us" in law enforcement are dedicated to holding accountable financial institutions that lied and cheated and misled investors, said Robert Khuzami, director of the enforcement division at the U.S. Securities and Exchange Commission.
President Barack Obama disclosed the effort in his State of the Union address Tuesday night.