Five Banks who were caught destroying the American Dream of home ownership are getting a slap on the wrist and wished well. The banking settlement reached between five major banks and some States Attorney Generals is pathetic pandering. It’s another example of how the 1% make out like bandits, even when they are caught red-handed.
Some state Attorney Generals refused to sign on, because it was far too weak.
In the settlement terms, the five biggest banks involved will pay approximately $2000 to everyone whose home went imto foreclosure when the banks had run amuck. That won’t seem like much to the homeowners who lost huge multiples of that, to the same banks.
It’s as if someone got caught robbing your business of 50K and they got to keep $48,000 and as a penalty had to return only $2000 of what you lost. Meanwhile your business goes under, and the banks make record profits stealing from you.
Or, it is as if a fat cat got drunk, and he crashed his BMW into your Volvo, crippling your daughter and then he had to pay 1% of her medical bills. However, since he could afford a good lawyer, he can still keep their driver’s license, with a promise that next time maybe he wont drink so much when he drives. Such a deterent.
Of course Bank of America, Citibank, JPMorgan, Ally, and Wells Fargo have also agreed to refinance some more loans, which might be a little to their disadvantage. However, the chances they will do that, are the same as their compliance on other matters to date- slim and none. If they ignore the settlement, what will be the consequences? Who will know, other than the next homeowners who go under?
The state of California and Countrywide already had a much bigger settlement about the same illegal practices, but Bank of America, who acquired Countrywide, has ignored the previous agreement. All 5 banks flagrantly ignored legislation aimed to fixing the problem when it was starting to boil over, and did they ever pay a penalty?
No! So why would they worry about complying this time? These settlements are merely a small fee of doing business- dirty business that is anti-American.
Remember none of these Robber Barons have done any jail time. Robosigning is fraud and theft. It was at times like these (homes being lost to unscrupulous banks) that Bonnie and Clyde captured the hearts of the American People, by robbing the banks that brought this country into the depression.
Now the banks are at it again, teamed up with politicians from both parties. Where are the populists of both parties? The little guy needs a voice, has anyone got one? Where is Teddy Roosevelt when we need him?