House Republican Leader John Boehner (D-Ohio) says House Democratic Caucus Chairman Rahm Emanuel of Illinois should support GOP demands for an investigation into sweetheart loans to Democratic lawmakers considering his home state's attorney general plans to sue Countrywide Financial and its CEO, Angelo Mozilo, for allegedly defrauding Illinois homeowners.
"Congressman Emanuel’s home state attorney general is taking action to hold Countrywide accountable for what she believes is evidence that the company and its officials defrauded Illinois homeowners. She isn’t giving Mr. Mozilo a free pass, and I hope Congressman Emanuel won’t either. I hope he and Speaker Pelosi will join Republicans in calling for congressional oversight hearings on Countrywide and its practice of providing preferential loans to lawmakers," Boehner said in a statement.
The New York Times reported the planned lawsuit today; the state is claiming that "the company and its executives defrauded borrowers in the state by selling them costly and defective loans that quickly went into foreclosure.”
Emanuel's office did not have an immediate response, but we'll post it when we get it. More to come.