Skip to main content

The most dangerous political agenda on the horizon today is the sweetheart deal that the banks are about to get in the foreclosure settlement package.  If this deal goes through it will have widespread economic, social and political consequences that will be felt by some for generations.  The rich will win big time and anyone who is vulnerable will be hurt.

Let your State AG, your elected officials and the Obama administration know you are furious about this deal and you will hold them accountable if it happens.

The clear winners are the banks, who cash out their criminal and legal liabilities for less than three cents on the dollar.  

The clear losers are those who lost their homes in a nation-wide mortgage fraud scandal. They will only get 1500-2000 dollar cash payments for permanent damage to their economic lives.

What did the bankers do that required this 'settlement'?

•    Defrauded tens of millions of homeowners
•    Stole millions of homes
•    Bankrupted millions of people through predatory fees, no-win loans, etc.
•    Unilaterally privatized national property records
•    Screwed up national property records until nobody knew who owned what
•    Systematic document forgery to defraud millions of people out of their homes
•    Caused the worst economic crisis & meltdown since the Great Depression
•    Industry-wide conspiracy to defraud investors, causing economic collapse
•    Destroyed towns and cities
•    Cost millions of people their jobs
•    Held the world economy hostage, until they were bailed out for their crimes

What price will they pay? About 25 billion dollars in 'soft money'.  So you understand how little money this is, consider this: homeowners owe the mortgage industry 700 billion dollars more than their houses are collectively worth.

So the banks are cashing out of this problem for less than three cents on the dollar.

What will those who saw their homes stolen by the bankers get? 1500-2000 dollars.

I think that says it all.  

But it doesn't. It gets worse.  

Read this diary, do your homework, start asking some very serious questions and tell your elected officials that this deal will hurt the economy, let criminals off the hook and provide no justice for those who were robbed.  If we let this deal through we will be screwed economically and the bankers will fuck us again.

Its hard to pin down the details on a moving target, and I haven't seen more than the outline of the deal.  While there has been tentative agreement, they haven't signed the document.

Terms of the Deal
As I understand it, the banks are committing 25 billion dollars in the deal. Some of that money will be cash payments to those who lost their homes. Several million Americans will get 1500-2000 dollars.

That bears repeating: those who lost their homes - often in tandem with losing their jobs - get 1500-2000 dollars for the likely, permanent economic destruction of their lives and potential permanent poverty of their children.

To use legal parlance, they have hardly been 'made whole'.

Some will go to the states. I can't speak to those details, but anyone who ever followed the money trail of lottery and cigarette industry settlement funds will fall over laughing if any politician claims that money will go to the victims of banker criminality or to solving the problems they caused.

But this is just window dressing, most of it will come in the form of modified loans. So the money is 'soft' and exists only as the collective value of all American mortgages.

A Drop in the Bucket
So you understand the scale of the problem fully, US homeowners owe 700 billion more on their mortgages than their properties are worth.

So, even if the WHOLE 25 billion went toward reconciling the gap between mortgage and property values, no more than 3% of that gap would be assumed by the banks.

But when this sum is discounted by the money paid to defrauded former homeowners or the states, it is likely that only 1% of the debt/value gap will be addressed.

The Damage it Will Do
The real damage will come when - as financial industry analysists expect - foreclosures will dramatically rise, if the banks feel they have settled their liabilities. This will further wreak havoc on local and national economies.  

Property values will plummet as discounted housing hits the market, so all you lucky folks who still own your homes will see your property values go down.  

Some of you will pay more for your mortgage than your property is worth and the 'debt gap' between property values and property debt will rise.  Adding more stress to the economy, with all the cracks and damage happening at the bottom of the economy.

What do you think will happen next?

There will be a huge wave of foreclosures, collapsing home values and undermining local economies and the recovery.  This, in turn, will lead to another wave of foreclosures and the banks will be in a better position to capitalize again on the crisis they create.

But this is just ledgerbook stuff.

Banker Immunity and the Next Wave of Economic Crisis
This deal also gives bankers immunities, demands little in commitment, undermines home security and once again, throws the victims of the worst economic crisis since the Great Depression under a bus.  This would be a disgusting deal if it were peddled by Republicans. But for a Democrat, this is political stupidity to boot.

If you thought the public was angry in the 2010 election, imagine their mood in Nov. 2012, if the foreclosure crisis has gotten worse and knocked the phantasmagorical 'economic recovery' off its axis!  

We already have thousands of cities and towns trapped in a spiraling cauldron of joblessness, exploding foreclosures and massive warehousing of residential, commercial and office properties. This deal will explode the foreclosure crisis and its attendant abandoned housing, joblessness and local economic crises.

It will ripple throughout all household economies where the primary economic asset is the home that they own and owe to the bank.  

How much will that add to the economic recovery?  If your calculus doesn't produce negative numbers, you need new economic equations.

To add insult to injury, this commitment from the banks is about 1/2% of the bailout given to these banks by the Feds and the US government since they crashed the economy in 2007-2008.

This deal will cause economic harm to everyone, except the bankers and their co-conspirators in what might be the worst banking scandal in human history.

Post-Meltdown Banker Behavior
Lest there is anyone left on the planet who still believes that the behavior of our current crop of financial elites is going to change, let's consider what they've been doing since the Federal Reserve, the US government and countries all over the world poured trillions into their coffers and saved the rich while they abandoned the poor.

In the three years since we bailed the banks out with trillions of dollars, they:

•    Continue to peddle dubious derivatives and ‘financial instruments’
•    Used taxpayer dollars for massive bonuses to those who crashed the economy
•    Shook down European countries for their debt, forcing pro-bank reforms
•    Held national, state and local governments hostages to their debt
•    Warehoused millions of residential & commercial properties
•    Colluded with developers thru lending practices to consolidate property
•    Starved economic base, by refusing to lend & predatory banking practices
•    Continued practices of predatory fees, innovated mortgage games, etc.
•    Continued shady accounting tactics to hide problems from investors & regulators.

In town after town, homes are being abandoned, plunging them into deep economic crisis and neglect.  Bank seizures destroy municipal coffers, collapse neighboring home values, and indirectly destroy jobs.  Indeed, they have destroyed whole economies, when their predatory practices are judged across all activities and the direct economic consequences are considered.  

Let us not forget that the people who crashed the economy 3 years ago, are the same folks who rewrote the structures of our economy over the past 30 years, that collapsed wages and working conditions, outsourced jobs and buried us all in debt.  

And yeah, some of these people are in the Obama administration, or were appointed by him to pilot the recovery.

The major banks and financial institutions caused the worst economic disaster since the Great Depression and this deal absolves them of responsibility for their criminal behavior for mere pennies on the dollar and mostly with 'soft money'.

We've bailed them out for trillions of dollars and they continued to shave the edges of the law, failed honor their agreements with homeowners or the federal government in good faith, continued their loan-sharking, con-artist ways with devastating consequences for local, national and international economies.

And for three cents on the dollar and chum change for their victims, they will be getting off the hook. Why are we letting this happen?

Take Political Action
This deal will make the economic crisis worse at the local level, cause real and permanent damage to anyone caught in this crisis, and have knock-on affects throughout the social base. These problems will become more visible as we move toward election.

Not only is this a morally reprehensible deal, a potential threat to the economy and another bailout for the bankers, its political stupidity to boot.  What kind of mood to you think the electoral base of this party will be in, if foreclosures are rising at election time?  What happened in 2010?

Why would anyone who lost their home during this crisis vote for the political party responsible for their losses? And who do you think will be blamed when foreclosures are peaking around election time?

Call your state attorney general, call the white house and every elected official you can think of, and tell them you are in no mood for bank bailouts or any deal that lets these criminals off the hook or gives them any more power in our economy than they already have.

This deal needs to die a quick and ugly death or we will be grave economic and socio-political trouble by the end of the year.

Originally posted to Tom Taaffe on Sat Feb 11, 2012 at 10:10 AM PST.

Also republished by Jobs Wages and Community Investment Working Group, Income Inequality Kos, and The Democratic Wing of the Democratic Party.

Poll

Who is the biggest winner in the impending Bank Foreclosure Settlement?

81%31 votes
5%2 votes
2%1 votes
2%1 votes
0%0 votes
2%1 votes
5%2 votes

| 38 votes | Vote | Results

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  I'm about as conservative as anyone on Dkos.... (11+ / 0-)

    yeah, it's partly  that I'm older, 72, always had to work pretty hard for what I got, and do see the corruption of our political system.....and yes, that includes both sides of the aisle, not equally, or I wouldn't have written 300 diaries and a googleplex* of comments

    * a real word, that's older than Google TM

    But, this melt down is so tragic.  Look up MERS to see how bad it is, that it's almost enough to make me a radical.  I don't know whether this free enterprise-rule of law concept can be sustained.

    So, I endorse this diary fully, and perhaps even more.  The banks should have been nationalized, as by definition they were not part of private enterprise when they were bailed out.   I would like to blame it all on the financiers, but it was a weak mendacious political class, mostly Republicans, but with a generous number of Democrats (Read "Reckless Endangerment") that are responsible.

    It's as though we have been through a silent catastrophe, a thermo nuclear strike, yet it's not acknowledged.  But it happened-- with commensurate damage, and I don't know how long we can pretend that it didn't.

    And yes, this Foreclosure Bill only makes the tragedy worse.

    Great Diary.

      •  Another venue (4+ / 0-)
        Recommended by:
        aliasalias, Chi, Tom Taaffe, chuckvw

        you may consider is OpEd News.  It's crowded but get's a large readership, and you can take the exact diary that you already have from the edit page, links and all, and copy it into their submission form.

        It is a bit tricky at first, but it's worth while when you have a meaningul article such as this, and went to leverage your work.

        Then you can give a little time as an editor,and get priority posting, which means no approval.   If you have trouble you can contact the one man show publisher,  at this email

        Rob Kall-- rob@opednews.com

        Are you familiar with MERS, and how people who paid off their mortgage still may have a negotiable instrument that could be enforced against them for the value of the mortgage.  Those banksters didn't want to spend the few dollars to stamp them "cancelled"

        This is almost too outragious to believe, except it has been reported in the N.Y. Times.   Throw a link to the article search MERS if you do the OpEd news thing.

        Al Rodbell
        alvrdb-brt@yahoo.com

        •  thanks for the sophisticated advice (4+ / 0-)
          Recommended by:
          arodb, Greyhound, Chi, chuckvw

          Its appreciated. I'll check that out.

          No I'm not familiar with MERS. Wow. That needs more explanation.  

          Throw a couple of links up here, it begs further examination.  

          Yeah, the doodoo is very deep. And rotten goes all the way down.

          We need to sound the alarm on this deal.  Everyone needs to read the fine print.  The closer you read it, the worse it looks.

          •  Go to the NY Times and serch MERS (3+ / 0-)
            Recommended by:
            Chi, Tom Taaffe, chuckvw

            You will get a half dozen articles.  It was alluded to in your diary here:

            Screwed up national property records until nobody knew who owned what
             •    Systematic document forgery to defraud millions of people out of their homes

            If this had been done by the Mafia, there would the king pins would have been in jail for life,   If done by a foreign power we would have nuked them.

    •  Just for fun...I agree with your assessment... (3+ / 0-)
      Recommended by:
      pfiore8, arodb, Catte Nappe

      but the real word is googolplex.

      Only the ones who made all the money mistook the spelling.  

  •  It's not popular here, but I agree completely. (5+ / 0-)
    Recommended by:
    Wolf10, pfiore8, aliasalias, Chi, Tom Taaffe

    This is so completely outrageous... beyond corrupt. Criminal in itself.

    "Those who can make you believe absurdities can make you commit atrocities." - Voltaire

    by Greyhound on Sat Feb 11, 2012 at 10:46:18 AM PST

    •  yeah, I noticed nobody was talking about it (3+ / 0-)
      Recommended by:
      pfiore8, aliasalias, Chi

      That's why I pointed out it would affect their property values too.  Its a little too easy for affluent liberals to ignore the plight of others, until it affects them too.

      •  there have been posts about it... (4+ / 0-)
        Recommended by:
        Tom Taaffe, aliasalias, Chi, chuckvw

        i just had a short one up today, just to try to get some kind of visual understanding

        156bn banker bonuses... 25bn to homeowners

        also a link to a good FDL analysis in there.

      •  That's the problem with the rich "liberals". (2+ / 0-)
        Recommended by:
        Tom Taaffe, chuckvw

        Since every solution to the catastrophe that is "our" economy involves those with too much receiving less, and ultimately becoming just another person like everybody else, they are not really inclined to help further the agenda.

        The only difference between the Democratic rich and the Republican rich is that the Democrats feel a little badly about what their ambition has wrought. But in the end, "I've got mine, fuck you." wins out every time.

        "Those who can make you believe absurdities can make you commit atrocities." - Voltaire

        by Greyhound on Sat Feb 11, 2012 at 12:31:12 PM PST

        [ Parent ]

        •  Tell me about it! (3+ / 0-)
          Recommended by:
          prndl, CentralMass, Greyhound

          This country is divided between those with money to invest in markets and those without. When Obama speaks about the 'middle class', he's talking about the first group, not the second.

          Obama started by saving the banks and stopped when he worked his way down to the investor class, leaving everyone else to drown in the worst economic climate since the Great Depression.

          A lot of people have seen their economies destroyed - possibily forever - and these ivy league, trust fund babies don't even notice the damage.  They just keep piling it on.......

          To follow on your thought, what's the difference between Democratic and Republican economic agendas?

          Republicans want to turn us into slaves and the Democrats want us to feel good about the experience.

      •  what are you talking about? People were screaming (1+ / 0-)
        Recommended by:
        highacidity

        about it before and during and after time it was announced.
        What, the 'affluent liberals' don't care?

        And what is so outrageous. The scope of this release is so narrow that it stops almost nothing and it is a civil settlement only, not a criminal release.
        Mers is mentioned, well Mers is still being sued

        At the same time, the $25 billion federal-state settlement preserves New York's right to pursue litigation against the Mortgage Electronic Registration System (MERS) and three of the nation's largest banks, as well as actions that could arise from a continuing investigation, according to Attorney General Eric T. Schneiderman
        Individuals or class actions suits can still be brought (and settlement will provide funds to do so)

        Government can still pursue any claims related to the packaging of loans into securities, any criminal actions, fair lending violation and on and on....

        I was startled to see there was an agreement, that the AGs holding out had signed it. Then I heard them talk about it, then I read how limited the release is and how much more there is ahead. I was glad

        People would be right that 25 billion is not enough if it was a full release, if this is all they get. Maybe it's a con and they do stop now...
        Or maybe the AGs we do trust are not conning us, maybe the investigations do go on and with this settlement at least homeowners can get some immediate help

        But with this diary I wonder if I hallucinated that it was not a full release  and the diaries I read yesterday
        ah well. I must be too affluent to care.  

        •  Thank you for the additional details (0+ / 0-)

          As I said, stories about what has been agreed to a bit of a 'moving target'. Most are based on conversations with negotiators and other reports.  Some reports agree, some do not.

          I've heard they got some immunities, but didn't get others.  I've heard the banks are exposed to prosecution for meltdown-era crimes. By implication, that means they have some protection against robo-document crimes.  

          Why else would the banks sign the agreement if it didn't resolve some liabilities and get some protection against lawsuit?

          The cheap, cash-out for the dispossessed, the fact that this does nothing but paper over the mortgage debt problem and the question of immunity are all anyone should need to ring the alarm bell and pull the brake chord on this settlement.

          This needs to be debated in public.

          I see that the vultures are expecting another wave of foreclosures.  I work in a town that is already reeling from wave after wave of foreclosures that devastated this town and pushed it to the edge of open rebellion over this shit. Another wave might tip them over the side.

          And no, I don't trust my state AG (Coakley). Nor do I trust AG Holder or anyone in the Obama administration when it comes to dealing with the banks or protecting the economically endangered.  

          I think the Obama administration - indeed the whole democratic party - are too deeply in bed with the banks, financial institutions. I knotice Obama's shiny, new Super Pac just opened for business, this settlement would be a great 'confidence booster' to get the campaign donations flowing.........

          They did nothing but bail out the guilty and leave everyone in economic danger to drown.  To them, we're just a stroke in the ledgerbook. An acceptable loss.  1500-2000 dollar compensation for defrauded homeowners looks like more of the same.  

          I don't trust this party to defend our interests and I think they are in bed with the bankers. Indeed, I don't trust the privileged classes to defend our interests. I spent too much time in their company and think they are all too comfortable with our exclusion from opportunity.  

          We need a full and open debate about this settlement before anyone signs away people's rights or liabilities or cashes them out for pennies on the dollar.

  •  But a Republican would do worse, right? Although (9+ / 0-)

    it's getting ever more difficult to make that claim.

    It appears that the settlement's triumphant announcement is irresponsibly and unethically premature not to mention likely to get worse than we have been lead to believe. See:
    Mortgage Settlement as Attorney General Sellout: Deal is Not Done, and Final Version Guaranteed to be Worse Than Advertised

    The frog jumped/ into the old pond/ plop! (Basho)

    by Wolf10 on Sat Feb 11, 2012 at 10:49:19 AM PST

  •  And what is the alternative? It will be extremely (1+ / 0-)
    Recommended by:
    pfiore8

    hard to prosecute the banks for the crimes covered under the settlement. Most of the stuff you're talking about is not covered by the settlement. The time to really go after banks was when TARP was funded, now not much can be done.

    •  "now not much can be done". Hmmmm, (2+ / 0-)
      Recommended by:
      pfiore8, Greyhound

      how the heck did that happen?

      The frog jumped/ into the old pond/ plop! (Basho)

      by Wolf10 on Sat Feb 11, 2012 at 11:12:34 AM PST

      [ Parent ]

      •  A lot of the stuff banks did wasn't technically (1+ / 0-)
        Recommended by:
        Catte Nappe

        illegal. What was illegal will be extremely hard to prove. When banks still had (or wanted) TARP money, it would have been much easier to force them to make some changes in their behavior, give up some profits etc. Now this leverage is mostly gone so we end up with a relatively small settlement like this one.

        Btw, if it was so bad some state AGs would have opted out. White House has rather limited influence on them. Apparently, it's good enough for them to stay in.

        •  This was a great moment to write down debt (3+ / 0-)
          Recommended by:
          aliasalias, Wolf10, chuckvw

          stablize the housing market and keep people in their homes, as well as addressing the damage these thieves did to millions of people.

          Instead, AG Holder sold us out and gave away all the leverage that will keep a couple of people in their homes.

          I'm not voting for this bullshit again.

          •  Holder wasn't on board then (0+ / 0-)

            TARP started under the Bush admin.

            from a bright young conservative: “I’m watching my first GOP debate…and WE SOUND LIKE CRAZY PEOPLE!!!!”

            by Catte Nappe on Sat Feb 11, 2012 at 01:56:43 PM PST

            [ Parent ]

            •  Geithner and Bernanke (4+ / 0-)
              Recommended by:
              Wolf10, aliasalias, J Orygun, prndl

              are responsible for the bank bailout, Holder is responsible for this mess.

              And Obama supported the TARP, he appointed all these guys to their respective jobs, and he did nothing about joblessness and the mortgage crisis in his first two years of office - when he had a bulletproof, supermajority - so the excuse that the 'republicans won't let him' holds no water.

              He bought the banker's argument and now he's surprised that we have growing inequality. He needs look at his own policies and advisors to see the problem.

              And it happened again here: they threw the most vulnerable under a bus, again for the benefit of the bankers. Perhaps they are hoping for a good return in their super pac.

              This is not going to end well for anyone but the bankers.

        •  Wasn't technically illegal? (3+ / 0-)
          Recommended by:
          Tom Taaffe, chuckvw, Wolf10

          When did forgery, (robo-signing) become legal?  The message, and the reality of this bullshit is that if you have enough money, you are above the law.  If any AG can't make a case out of millions of acts of forgery, they must be piss poor attorneys.  I know Eric Holder is a piss poor attorney, but then he used to work for the Banksters.  I'll bet money that he gets a high paying job with them again, after he stops warming a chair at the DOJ.  What an asshole!  Obama will just write another book, and the banksters will by a million or so copies, so he gets paid.  He's another asshole that just sold out union members with the signing of the FAA reauthorization act, and now this shit.

          •  Even if he resigned under a cloud (1+ / 0-)
            Recommended by:
            Wolf10

            Holder will resurface as director of some major economic or policy operation, constructed to advance the new world order and the corporatization of everything for the benefit of the very precious few.

            He did more to prevent prosecutions of bankers than he did to find justice for anyone. Never mind actually protecting the public from the predator clases.

            Obama's cabinet is a closet full of corporate creeps, with the same school ties and the same backers as Republicans.  No wonder the economy lies in a coma. The people who put it on life support are still running the economy.

            I'll bet this deal will do wonders for Obama's new Super Pac.  

        •  not technically illegal (2+ / 0-)
          Recommended by:
          prndl, Wolf10

          One of my big questions (which I sent to my AG) is "what would be different if the banks did the same thing again? (And we all know they will.)". As far as I know, nothing has changed.  The same behavior will again result in no-one paying a price, except taxpayers.

          Here's an idea: how about the people run the government and the corporations can line up for whatever we leave for them.

          by J Orygun on Sat Feb 11, 2012 at 05:09:29 PM PST

          [ Parent ]

    •  You do a lot more than prosecute (0+ / 0-)

      They've committed so many crimes, insider trading, fraud, money laundering, tax evasion, fraudulent bookkeeping and who knows what else,  there's no shortage of prosecution opportunities.

      And every person who lost their home is a lawsuit waiting to happen. What's lacking is the will to do a god damn thing about it, except sweep the problem under the carpet and get back to advancing the New World Order.

      Yes, the bankers should have had their throats cut back in 2008. But pandering to them now does no one any good.  

      If Obama and his banker boy cabinet wanted to jam the gears of the greedy, declare an open-ended primary home foreclosure moratorium until the matter is satisfied to the benefit and protection of homeowners.

      Then you will have them by the short hairs again.  They will be so eager to negotiate, it will be comical.

      But this administration would rather sell us out to the bankers than help anyone in real economic danger.

  •  What did Eric Schneiderman have to say about it? (2+ / 0-)
    Recommended by:
    We Won, Catte Nappe

    http://www.washingtonpost.com/...

    Pressed on whether a settlement that could result in as little as $2000 per injured homeowner could really be called a victory, Schneiderman said the fact that banks had not obtained any immunity on pre-crash conduct would ultimately yield the fruits of a major victory for the left.

    “The conduct that led to the crash is still fair game,” Schneiderman said. “I’m confident the releases are narrow enough so our investigation into misconduct should produce more significant relief going foward.”

    We don't want our country back, we want our country FORWARD. --Eclectablog

    by Samer on Sat Feb 11, 2012 at 12:12:22 PM PST

    •  millions of forged documents (4+ / 0-)
      Recommended by:
      splashoil, mightymouse, aliasalias, Chi

      and millions of defrauded homeowners apparently isn't sufficient for criminal charges...........

      What Schneiderman seems to forget is that this isn't about 'victory for the left', but justice for the people defrauded of their homes, as well as the families and communities destroyed by their behavior.

      By that measure - or the losses to come from this deal - its an unmitigated disaster for everyone, except the bankers.

      •  You misunderstand my point. (2+ / 0-)
        Recommended by:
        sharonsz, joynow

        Schneiderman doesn't view this as the end of the road, but a needed piece of a larger whole.

        We don't want our country back, we want our country FORWARD. --Eclectablog

        by Samer on Sat Feb 11, 2012 at 02:03:37 PM PST

        [ Parent ]

        •  I don't see it that way at all (3+ / 0-)
          Recommended by:
          aliasalias, splashoil, chuckvw

          One out of twelve homes are empty in the town I work in. And many more are standing on the edge of foreclosure, while whole neighborhoods are sinking like a stone.

          This sleazy deal will open the floodgates and a wave of foreclosures to follow.  These will start rising through the summer as the election approaches, giving legitimacy to the otherwise lunatic ideas of the right.  

          Unless there is substantive intervention in this situation, on the side of the homeowners and the communities affected, its gonna be a long hot summer and a very ugly fall election.

          This bill will leave more people homeless and destroy their economies for the rest of their lives.  If might just trigger another angry backlash voter response - and another devastating Democratic defeat - leaving the lunatics and corporations free to rape the country.

          If that's an advance for the left, call me something else!

  •  Naked Capitalism & FDL Dave Dayen (2+ / 0-)
    Recommended by:
    Tom Taaffe, chuckvw

    No Term Sheet!

    This is incredible. The Administration, the AGs, everyone involved in this made a big show of an agreement reached on foreclosure fraud. But there is no piece of paper with the agreement on it. There’s no term sheet. There are just agreements in principle.

    There’s a HUGE difference between an agreement in principle and the actual terms. I mean night and day. The Dodd-Frank bill was for all intents and purposes an agreement in principle. It left to the federal regulators to write hundreds of rules. And we have seen how that process of implementation has faltered on several key points. But the Administration wanted to announce a “big deal,” the details be damned. And they got buy-in from the AGs. Everyone else stayed silent.

    "Worse than Advertised!"
    This may not sound all that important to laypeople, but most negotiators and attorneys will react viscerally to how negligent the behavior of the AGs has been. The most common reaction among lawyers I know who been with white shoe firms (including former partners) is “shocking”. Let me explain why.

    Negotiating of large, complex deals (or even little deals) does not happen in one fell swoop. Even when the two sides have outlined the major terms, and in sone cases hammered out the really important ones in some detail, there is still a great deal of negotiating that takes place in finalizing the text of the contract. The negotiation over the definitive agreement makes a great deal of difference on how fair the pact turns out to be. For instance, one of the sayings of transaction lawyers is “He who controls the document controls the deal.” The party that writes up the initial version of the contract has undue influence because that becomes the default and the other side has to negotiate back from that language.

    Rotten to the core.  
  •  Unilaterally privatize property records? (0+ / 0-)
    I know that MERS (the "mortgage electronic registration system") was flipping properties quickly and not properly filing the transactions with the county recorders,

    BUT don't they have to do that now?

    I mean, can't everyone now go to the County Recorder and find out who owns their home loan?

    Also, I believe this settlement has already been signed by most states--including California.  At least that was the news on Thursday.

    Separation of Church and State AND Corporation

    by Einsteinia on Sat Feb 11, 2012 at 05:47:32 PM PST

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site