Sometimes, the regulators and the banks really are on the same page. This odd coupling usually crops up unexpectedly.

For example, when Judge Jed Rakoff nixed the SEC's settlement with Bank of America over all manner of Merrill Lynch-related improprieties, the two were forced to defend the original deal together. Now comes word that federal regulators have joined banks in a common desire to force New York AG Eric Schneiderman to cease his opposition to a far-reaching settlement with banks and mortgage servicers over dubious foreclosure and mortgage practices.

A settlement between the banks on one hand and federal and state officials on the other looms as one key to finally ending some of the uncertainty that plagues banks right now. Many states have agreed to a deal that has unfortunately languished for months, as the hard-charging New York AG balked. The main sticking point is whether banks deserve some sort of blanket immunity from additional state prosecution.

The New York Times reports that some Justice Department officials and the head of HUD have lobbied Schneiderman personally to play ball. But it's unclear how much luck they've had. The administration would like to get all this settled, and thus help banks get back on a path to recovery, which the economy could use.

But is that justice? Is that the prime concern of a law enforcement official? In some ways, you have to admire Schneiderman's stand. But if a lot of pressure is brought to bear, at some point, the question becomes what the AG can get out of dropping his opposition. 

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