NY Fed Suing Bank of America a Damage Control? Or Worse, a "Wag the Dog" Ploy?

(UPDATE)
Adding to my already deepened suspicion, FBI is joining the fray. From AP,

Meanwhile, a federal law enforcement official says the FBI is in the initial stages of trying to determine whether the financial industry may have broken criminal laws in the mortgage foreclosure crisis.

The law enforcement official says the question is whether some in the industry were acting with criminal intent or were simply overwhelmed by events in the wake of the housing market's collapse. The official spoke on condition of anonymity because the investigation is just getting under way.

Well, shall we bother to guess which one? I bet it's of course the latter, that they were simply overwhelmed by events... They were innocent victims...

Currently, the federal government DOES NOT have control over foreclosures. State governments DO. But with the NY Fed bringing a lawsuit and now the FBI investigating, the federal government is trying to sneak in, and probably to take over the mess for yet another feds control and yet another potential bailout by taxpayers. My guess.

The feds will have to cover up; I hate to think how much crap is buried at Fannie, Freddie and FHA. (You could say their entire structure is pure crap.)

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One poster at Zero Hedge ('alien-IQ') posits:

I just realized why the FED is suing BAC (and probably all the other banks)...and it's not good.

This now becomes a Federal case and effectively shuts down all the investigations as well as all the charges being brought against the banks by the AG's of all 50 states. The AG's are more likely to seek criminal charges while the FED is more likely to cut a "bank friendly" deal.

The banks just won...again.

We have been hijacked.

The Zero Hedge article which has this comment points to a curious conflict of interest between Bank of America (who owns 34% of Blackrock) and Blackrock (who owns 5.35% of Bank of America, the largest shareholder), and concludes this putback request is nothing but diversion while they sweep the "foreclosuregate", "fraudclosure", whatever you want to call it, under the rug.

Move on, nothing to see here...

We'll see if they can get away with it this time, but if past cases are any indication, I wouldn't hold my breath.

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