NYTimes Profiles Ohio AG Richard Cordray '86 and His Fight Against Wall Street Malfeasance
The October 11 issue of the New York Times included a long profile of Richard Cordray, '86, Ohio Attorney General. Below is an excerpt, and the complete article can be read here.
Back East, at the corner of Broad and Wall Streets, the view is swell. The Dow is soaring, and bankers look pleased.
But here on East Broad Street, the mood is gloomier. At least 90,000 residential and commercial foreclosure notices will be filed in Ohio this year. Pension funds for teachers, secretaries and janitors have suffered grave losses. And multitudes of the unemployed in Ohio now speak of turning to prayer.
Ohio’s attorney general, Richard Cordray, might be seen as their pinstriped avenger.
“There’s a belief here that Wall Street is a fixed casino and it’s back in business, and we’re left holding the bag,” said Mr. Cordray, whose office overlooks East Broad. “It’s important for us to show we’ll go after a company that does wrong.”
Mr. Cordray in two years in office has demonstrated a willingness to sue early and often, filing lawsuits against global financial houses, rating agencies, subprime lenders and foreclosure scammers. He has wrested about $2 billion so far, a string of gilded pelts: a $475 million Merrill Lynch settlement, $400 million from Marsh & McLennan and $725 million from the American International Group.
Last week, he filed suit against GMAC Mortgage, accusing the loan servicer of filing fraudulent affidavits in hundreds of Ohio foreclosures.
His office has returned money to investors, pension funds, schools and cities. And he has directed millions to agencies fighting foreclosure.
“We see what Washington doesn’t: the houses lying vacant, the eyesore stripped for copper piping with mattresses out back,” Mr. Cordray says. “We bailed out irresponsible banks, but we forgot about everyone else.”