Will Discuss Financial Regulatory Reform; Proposed Consumer Financial Protection Agency

For Immediate Release: October 9, 2009

Contact: Alex Zaroulis (617) 549-0358, Mathew Helman (617) 821-8004

BOSTON – Today, Attorney General Martha Coakley and three other Attorneys General will travel to Washington, DC to meet with President Barack Obama to discuss the financial regulatory reform legislation that is currently before Congress. This legislation would provide the federal government with the necessary tools to avert future financial crisis.

“The current economic crisis caused by irresponsible subprime lending and inadequate oversight has highlighted the importance of comprehensive and effective consumer protection and enforcement,” said Martha Coakley. “I support the establishment of a consumer financial protection agency, combined with joint enforcement by state officials, to protect consumers, promote sound credit practices and restore confidence in the financial markets.  I look forward to discussing this issue with President Obama.”

As Attorney General, Martha Coakley has a proven track record of taking on Wall Street and protecting consumers, recovering over $135 million dollars for taxpayers and victims. She has:

• Brought First-in-the Nation Enforcement Actions against two major subprime lenders, Fremont Investment & Loan/Fremont General and H&R Block/Option One Mortgage Corporation, and obtained groundbreaking injunctions restricting those lenders’ ability to foreclose on unfair loans.
• Recovered Record Settlements in Enforcement Actions from Wall Street companies for violating consumer protection laws, unique among State Attorneys General:
  • Goldman Sachs & Company – record $50 million to borrowers and $10 million to the state
  • Fremont Investment & Loan - $10 million in consumer relief, civil penalties and costs
• Testified Twice Before Congress on Consumer Protection Issues such as loan modifications, auction rate-securities and foreclosure rescue schemes.
• Led Multi-State Effort on Loan Modifications seeking real progress from lenders and servicers on loan modifications.
• Enhanced Attorney General’s Abandoned Housing Initiative –Devoted additional resources and staff to provide cities and towns in Massachusetts the resources necessary to turn around vacant properties and end crime and blight. 
• Leadership on Foreclosure Issues:
  • Issued consumer protection regulations banning foreclosure rescue transactions and loan modification advance fees
  • Worked with Department of Justice and Federal Trade Commission on adopting a federal approach
• Issued New Regulations governing mortgage brokers and mortgage lenders in Massachusetts, addressing an array of unfair and deceptive practices in home lending that contributed to the foreclosure crisis
• Obtained Indictments  against unscrupulous individuals seeking to make a profit off the foreclosure crisis through complex schemes to defraud homeowners and mortgage lenders in numerous real estate transactions
• Filed Legislation on:
  • Loan Modifications - requiring loan modifications prior to foreclosure when feasible;
  • Abandoned Housing - creating a state abandoned property registry for municipal officials and law enforcement to track vacant properties and prevent crime and theft; and
  • Economic Crime - enhancing economic crime statutes to give law enforcement the necessary tools to investigate and prosecute sophisticated criminal activities and enterprises in the 21st century. 

As Senator, Martha Coakley will support efforts to enhance and strengthen financial regulatory reforms. She will work with the business and financial community to develop and implement effective regulatory reforms to prevent another economic failure and give the government the necessary tools to protect the markets in the future.

Coakley became Massachusetts’ first female Attorney General in January 2007. She has established herself as a leader on issues affecting Massachusetts residents, including the foreclosure crisis that has plagued families in Massachusetts.  In addition, she has protected workers in Massachusetts and achieved record recoveries for employees and the Commonwealth in enforcing the Massachusetts wage and hour laws.

Coakley, 56, was raised in North Adams. She is a graduate of Williams College in Williamstown, MA, where she was a member of the first class admitted to the college that included female students.  She received her law degree from Boston University School of Law in 1979.  Coakley resides in Medford with her husband, Thomas F. O’Connor, a retired police Deputy Superintendent.

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