"As settlement discussions between the Attorneys General, the federal agencies, and the mortgage servicers continue, we want to reiterate our view that pressure for an immediate settlement must not outweigh the more important need for a settlement appropriate to the vast scale of the laws broken and the harm done," they write. "We understand that industry is pressing to limit relief and for overly broad releases; they must not be allowed to succeed. To the extent that institutions or individuals committed illegal acts, there have to be consequences for breaking the law that are in proportion to the seriousness of the violations."

The letter echoes the view of New York attorney general Eric Schneiderman, who has defied the wishes of the Obama administration and has resisted their efforts to get all 50 A.G's to settle with the banks.  Schneiderman has argued that the banks should not be immune from prosecution and has pushed for a larger monetary settlement.

Earlier this year, we wrote about how Schneiderman's tenure is almost a rebuke to the Obama administration and and an answer to many on the left who call for a more robust Democratic Party, one that is less acquiescent to big business and the right.

The letter comes from Americans for Financial Reform, an umbrella group of labor and progressive organizations.

The issue also came up last night on MSNBC's the Last Word. Video and full letter are below:

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AG Letter 8-24-11 (1)