Well in this not so-good-news story, there may be one small silver lining: individual States may be able to "opt out" of the MERS Settlement deal and pursue legal action of their own against the Mortgage Electronic Registration System, and the Big Banks behind them.
Banks May Face Fraud, Municipal Claims After Mortgage Accord
Bloomberg-Businessweek -- October 12, 2011
Oct. 11 (Bloomberg) -- U.S. banks may still face state securities-fraud claims and municipal lawsuits over unpaid mortgage fees under a settlement that is "getting closer," the official leading talks for state attorneys general said.
[...]
Several attorneys general, including New York's Eric Schneiderman, Delaware's Beau Biden, and Massachusetts Attorney General Martha Coakley, have raised concerns about the scope of the liability releases that would be given to the banks as part of any deal.
They have said the banks shouldn't receive releases for matters that haven't been fully investigated, including the packaging of mortgage loans into securities and the use of a mortgage database known as MERS.
[...]
California Attorney General Kamala Harris said Sept. 30 that she was rejecting a proposed settlement with the banks and would conduct her own mortgage investigation because the state "was being asked for a broader release of claims than we can accept and to excuse conduct that has not been adequately investigated."
Finally, some Attorney Generals with backbone!
The not-so-good part of the Settlement story -- Matt Taibbi equates it to another "get out of jail" Bailout for the Banks, which by some accounts "will be a bigger Bailout than TARP" ...
The Next Big Bank Bailout
by Matt Taibbi, rollingstone.com -- Oct 5, 2011
California Attorney General Kamala Harris sent a letter to state and federal regulators explaining that she pulled out because the proposed settlement amount for banks guilty of bad securitization practices leading up to the mortgage crisis -- said to be in the $20 billion range -- was too small. From Business Week:
Harris says in a letter to state and federal negotiators that the pending settlement is "inadequate" and gives bank officials too much immunity.
[...]
In fact, any federal foreclosure settlement along the lines of what’s been proposed will amount to a last round of post-2008-crisis bailouts. I talked to one foreclosure activist over the weekend who put it this way: “[The AG settlement] will be a bigger bailout than TARP.”
[...]
Any foreclosure settlement will allow the banks to pay one relatively small bill to cover all of their legal liabilities stemming from the monstrous frauds they all practiced in the years leading up to the 2008 crash (and even afterward), when they all schemed to create great masses of dicey/junk subprime loans and then disguise them as AAA-rated paper for sale to big private investors and institutions like state pension funds and union funds.
To give you a sense of the extent of crimes perpetuated by these MERS-enable Mortgage Banks, I invite you to check out my cliff-notes summary of the 60 Minutes report on the topic:
This is what happens When 'Corporations become People' -- Real People get tossed aside -- by jamess -- Oct 10, 2011
If that blatant fraud doesn't make you mad about Wall Street's unbridled greed -- then you must be a GOP Free-Market, No-Regs, Corporatist.
Here is some more background on the proposed MERS Settlement (as of a few months ago):
Should MERS get a Get-out-Jail-Free Card -- while MERS' victims just have to Get-Out?
by jamess -- Jun 22, 2011
As the Mortgage Meltdown World Turns ...
by jamess -- Aug 27, 2011
It was only going cost MERS something around $20 Billion to make all their criminal mischief -- just "go away" ... all those non-legal below-the-radar Mortgage Transfers, and subsequent Foreclosure Fraud, using out-sourced Document Mills to cover up their tracks, and their utter lack of valid legal paperwork.
Fraudulent Paperwork, used to kick millions of people OUT of their homes.
$20 Billion to get out Jail Free -- Priceless!
Do you think the Treasury and the Fed, will "spot them" the 20-Large Loan, this time around, to make their "bail"? -- to pay their "parking ticket"?
I sure hope NY, CA, MD, MA, and other states join in, and sue MERS (and their owners) for all they're worth ... and stick it to them where it hurts them most -- right in middle of their offshore Bank Accounts.