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Baldwin: Tighten rules for future bank settlements

A foreclosed sign stands in front of a home in the 6200 block of West Stevenson Street in Milwaukee earlier this month. U.S. Rep. Tammy Baldwin wants to make it harder for states to redirect money that comes from mortgage settlements against large banks. (Staff photo by Kevin Harnack)

MILWAUKEE (AP) — U.S. Rep. Tammy Baldwin is asking the nation’s attorney general to make it harder for states to redirect money that comes from mortgage settlements against large banks.

Her comments Tuesday came after Wisconsin was awarded $140 million as part of a national mortgage settlement. Gov. Scott Walker said he plans to use about $26 million of that to help plug a state budget hole.

Baldwin criticized the plan, saying the money needs to go to those who were devastated by the housing crisis.

The Wisconsin Democrat submitted a letter to U.S. Attorney General Eric Holder. In it, she asks that any future settlements that are reached include language that would prohibit states from doing what Walker is planning.

A message left with a Walker spokesman was not immediately returned.

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