We all know there is no justice when it comes to criminal and even civil prosecutions for the financial crisis. We all know there is no justice when it comes to foreclosures. Are you aware the Obama administration is about to let the banks once again off the hook?
Maybe this has something to do with it. Reuters gives us just a little insight as to why their have been no criminal prosecutions of banks and civil penalties have been slaps on the wrist.
U.S. Attorney General Eric Holder and Lanny Breuer, head of the Justice Department's criminal division, were partners for years at a Washington law firm that represented a Who's Who of big banks and other companies at the center of alleged foreclosure fraud.
Great, so the highest prosecutor in the land had the Banksters as clients for years.
Holder and Breuer were partners at Covington, the firm's clients included the four largest U.S. banks - Bank of America, Citigroup, JP Morgan Chase and Wells Fargo & Co - as well as at least one other bank that is among the 10 largest mortgage servicers.
Reuters is really piecing together the implications with this paragraph. Wow!
Holder has resisted calls for a criminal investigation since October 2010, when evidence of widespread "robo-signing" first surfaced. That involved mortgage servicer employees falsely signing and swearing to massive numbers of affidavits and other foreclosure documents that they had never read or checked for accuracy.
Even 60 Minutes asked why isn't anybody in jail? Story after story on banks committing mortgage fraud appear yet almost nothing is done. We also see fines being a token pay to play fee in comparison to the loot made off of the toxic housing bubble. The statistics show prosecutions of financial crime generally are way down with this administration. Multiply that statistic by the worst financial disaster since the Great Depression and it's downright criminal to see this lack of justice.
To wit, we now have a sweetheart deal being pushed by the Obama administration to completely let banks off the hook for mortgage fraud. The settlement deal with all 50 states literally absolves banks of civil liability for mortgage fraud, misconduct and abuses. The settlement is $25 billion yet the banks made much more than that with their fraudulent foreclosures. Just look at the booty of the top 5:
The nation’s five largest mortgage firms – BofA, JPMorgan, Wells Fargo, Citigroup and Ally – saved more than $20bn since the housing crisis began in 2007 by taking short-cuts in processing troubled borrowers’ home loans, according to a presentation prepared for state attorneys-general last year by the US Consumer Financial Protection Bureau.
The kicker on this deal requires all 50 state attorney generals to sign on and drink the Kool-Aid. Naked Capitalism is hot under the collar on this one.
The latest bit of corrupt behavior is that the Obama administration has a full court press on to push the heinous “multi-state” settlement deal over the line. We’ve pooh poohed previous reports from Iowa state attorney general Tom Miller that a deal is just around the corner, since he’s been doing his variant on a Chicken Little act for a full year. But it appears the President wants a talking point, ideally for the State of the Union address or as shortly thereafter as possible.
So this time is different: the administration is putting far more pressure on the dissident and skeptical Democratic attorneys general. And precisely because Tom Miller’s efforts have appeared to be going nowhere, particularly after California AG Kamala Harris left the talks, the grass roots effort to oppose the talks has slackened off.
There is an online petition for no sweetheart deal with big banks. It has 350,000 signatures already. Word from Obama? Supposedly instead of obtaining justice, the administration is simply strong arming state attorney generals to agree to the sweep it under the rug agenda. We'll see if Naked Capitalism is right and this deal is peddled like other snake oil in the SOTU speech.
Our Future, is pushing for this deal to be stopped. Beyond the lack of justice, here's the real meat of Eric Holder's deal and why it is so unjust. It squeezes the very investors who took the hit on toxic mortgages originally. The banks themselves ain't gonna pay a dime.
Banks deceived investors into buying bundled mortgages (mortgage-backed securities) that they knew were worth far less than they were paying. Now, as part of this settlement deal, they could shaft those investors again. Many of the investors are from the 99 percent, not the one percent. As the head of the Association of Mortgage Investors told the Financial Times, "It would be a pyrrhic victory to settle the mortgage crisis with the money of public institutions, pension funds and seniors."
The proposed deal would force banks to meet a certain dollar limit for reducing mortgage principal. But it's designed to let them use other people's money - mortgage investors' money - to reach that limit. They would have to reduce principals by a larger amount if they were using someone else's money.
This deal reads like a crime scene clean-up ad, sweep-pro, like it never even happened.
$25B "Settlement" Deal
This same deal is being reported to "go to the States" and will be in SOTU. Lovely.
Naked Capitalism explains how this sucks money from pensions never mind is no justice.
25 Billion Settlement Deal. Banks need more accountability
Total Injustice Over and Over Again! Will it ever stop?? I am a homeowner in Charlotte, NC that was given 2 different Trial Modifications since 2009, and completed both successfully!! JPMC has only been the biggest pain in my you know what ever since. They refuse to offer me the Permanent Modification that I was sent in and Email.... although they continued to take my payments up until just recently around X-MAS 2011. All of 2011 they did nothing but constantly harassed me with rude phone calls, and Fed Ex packages threatening to take home, and continuously sending people to take pictures of my house. I cant begin to tell you the effect this has had on my family, marriage, and health. If our government doesnt hold them accountable, then I know who will, Almighty God has the last say! Thanks for this opportunity to voice my situation. It's a shame the world has come to this:(
101 yr. old woman evicted from foreclosed home
Just yesterday there was a 101 yr. old women foreclosed on, evicted. This is why we push to contact the attorney generals in the above link as well as your Congress representatives.
We have story after story like yours on HAMP, never mind the brazen fraud in foreclosures.
What ever you do, don't take it personally or think you did something wrong. You did not do anything wrong. It's the system and honestly, we've been writing about this since 2008 as have others, but one thing is certain, if you "go away quietly" this will never been exposed. Frankly you probably won't get justice but tell your story anyway.
This isn't a political issue, it's a ripoff issue.
One AT hold out, Illinois
naked capitalism details the press release.
But it says only for one week.
Couple of conflicting articles
Supposedly the NY AT who has been touch on "settlements, is one of the new Financial fraud unit's co-chairs. HuffPo Story, at the end.
Next, supposedly BoA is behind blocking AZ AT from investigating mortgage fraud.