"This could have been a last-ditch effort to push them to the finish line," Sanders said of the settlement talks.
Schneiderman has been one of the most aggressive state attorneys general in investigating the actions of financial firms and others leading up to the housing bust. Along with California Atty. Gen. Kamala D. Harris, Schneiderman has balked at broadly releasing banks from legal liability as part of the foreclosure settlement talks.
They and several other attorneys general are concerned that the immunity would be so broad that it would preclude other investigations into the causes of the crisis.
A spokesman for Schneiderman said he would not sign on to any settlement that would limit his ability to investigate the mortgage crisis. Meanwhile, a spokesman for Harris said the attorney general believes that the current settlement proposal is inadequate for Californians.