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Despite some initial boasting and misdirection the Mortgage Fraud settlement by the Too Big To Jail Banks is actually... total bullshit. From the New York Times:

Under the terms of the settlement, the banks will provide $26 billion worth of relief to borrowers and aid to states for antiforeclosure efforts. In exchange, they will get immunity from government civil lawsuits for a litany of alleged abuses, including wrongful denial of loan modifications and wrongful foreclosures. That $26 billion is paltry compared with the scale of wrongdoing and ensuing damage, including 4 million homeowners who have lost their homes, 3.3 million others who are in or near foreclosure, and more than 11 million borrowers who are underwater by $700 billion.

The settlement could also end up doing more to clean up the banks’ books than to help homeowners...

This is actually another bailout under the guise of law enforcement.
When it comes to helping homeowners, banks are treated as if they still need to be protected from drains on their capital. But when it comes to rewarding executives and other bank shareholders, paying out capital is the name of the game. And at a time of economic weakness, using bank capital for investor payouts leaves the banks more exposed to shocks. So homeowners are still bearing the brunt of the mortgage debacle. Taxpayers are still supporting too-big-to-fail banks. And banks are still not being held accountable.
But it gets even better according to two policy experts in this Bloomberg Law discussion. The experts, Matt Stoller of the Roosevelt Institute and Neil Barofsky, the former Special US Treasury Department Inspector General for the Troubled Asset Relief Program (TARP), explain that the settlement is not only insufficient to help homeowners but, echoing the Times editorial, actually hurts homeowners and America's system of justice:



So not only have fines been reduced, subsidies guaranteed, but under this agreement it is permitted to fraudulently foreclose on homeowners.

There is no law in America anymore, only Power.

Originally posted to Occupy Wall Street on Mon Mar 19, 2012 at 10:22 AM PDT.

Also republished by ClassWarfare Newsletter: WallStreet VS Working Class Global Occupy movement, Income Inequality Kos, and Anonymous Dkos.

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Comment Preferences

  •  Must keep the Banksters happy! (8+ / 0-)

    Grrrrrrrrrrrrrrr!

    Republicans take care of big money, for big money takes care of them ~ Will Rogers

    by Lefty Coaster on Mon Mar 19, 2012 at 10:27:22 AM PDT

    •  & advisors with THIS attitude (5+ / 0-)
      None of them is anywhere near as "imperious and heavy handed" as Summers, who Suskind actually caught musing that "One of the challenges in our society is that the truth is kind of a disequalizer." According to Summers, "One of the reasons that inequality has probably gone up in our society is that people are being treated closer to the way that they're supposed to be treated."
      (from the Froomkin link)

      without the ants the rainforest dies

      by aliasalias on Mon Mar 19, 2012 at 12:07:13 PM PDT

      [ Parent ]

  •  One more example of this administration's (15+ / 0-)

    contempt for the rule of law.

    One more example of this administration's willingness to coddle the rich, despite comforting words to the contrary...

    This, too, shall pass. Just like the last global ecological cataclysm. C'est la vie, dude. Take a chill pill, recite the serenity prayer, go with the flow and the moderates into that "goodnight".

    by Words In Action on Mon Mar 19, 2012 at 10:28:17 AM PDT

  •  It's possible we could have had a different (14+ / 0-)

    outcome - if, say we had a president in the TR or FDR mode, with some intestinal fortitude and the will to stand up to the corporate overlords . .  but in the present administration you can't swing a cat without hitting a phalanx of corporate toadies, from the press secretary to the secretary of defense to the laughable POS at the Department of Justice.  

    I tremble for my country when I reflect that God is just; that his justice cannot sleep forever. ~Thomas Jefferson

    by bobdevo on Mon Mar 19, 2012 at 10:34:44 AM PDT

    •  "Summers is doing a heck of a job!" (3+ / 0-)

      •  from the Froomkin article Cenk cites (8+ / 0-)

        http://www.huffingtonpost.com/...

        Obama's most seminal speech on the crisis was his March 2008 address at Cooper Union. There, he laid part of the blame for the disaster on Clinton-era financial deregulation, including the 1999 repeal of the 1933 Glass-Steagall Act. That repeal, which broke down barriers between commercial and investment banking, led to the growth of financial behemoths that were able to take enormous risks with impunity because they were "too big to fail."

         "[I]nstead of establishing a 21st century regulatory framework, we simply dismantled the old one, aided by a legal but corrupt bargain in which campaign money all too often shaped policy and watered down oversight," Obama said. "In doing so we encouraged a winner take all, anything goes environment that helped foster devastating dislocations in our economy."

        Among the foremost champions of that deregulatory regime were the key members of President Clinton's economic team, including Robert Rubin, who was Clinton's treasury secretary, Larry Summers, who succeeded Rubin, and Timothy Geithner, who worked directly under both of them.
        But once Obama was elected, and was staring into the maw of staggeringly large financial crisis, he made a fateful decision: He left most of his progressive economic advisers behind -- including such liberal luminaries as Robert Reich and Joseph Stiglitz -- and chose to go with name brand Clinton officials instead. Summers became his chief economic adviser, Geithner became his Treasury secretary, and fellow Rubin protégé Peter Orszag became his budget director. (According to Suskind, Obama even offered Rubin himself an office in the White House.)
        (all emphasis mine)

        I agree, how does someone believe this man?

        without the ants the rainforest dies

        by aliasalias on Mon Mar 19, 2012 at 11:37:07 AM PDT

        [ Parent ]

  •  Same as it ever was. (8+ / 0-)

    And no doubt a Republican president ... would do the very same thing.

    Except if it wer a Republican president, all of us would oppose it and point it out.

  •  There is only one possible explanation for all the (5+ / 0-)

    crap that has surrounded this whole shoddy affair from the very beginning.

    Capitalism has been proven to be an abject failure and the government ( whether it be run by Republicans or Democrats )  can simply not bring itself to admit that one simple and very important fact and begin to take appropriate action.

    This country needs a very strong dose of Socialism and a very strong dose of even handed Justrice and it needs it fast or the nuclear arsenal of the United States is going to end up in the hands of a bunch of Revolutionaries ---  and who can predict what will happen after that.

  •  Who could have predicted? nt (2+ / 0-)
    Recommended by:
    Marie, Lisa Lockwood

    “In the beginning there was nothing, which exploded.” Terry Pratchett

    by 420 forever on Mon Mar 19, 2012 at 11:08:19 AM PDT

  •  Banks are getting away with no consequences (6+ / 0-)

    What would an actual OWS participant give as a lesson from the beating of Cecili  on Wall Street's OWS 6 month annibversary march Saturday?

    Do videos and publicity of violence and deliberate police brutality help move the issue or fix problems? NO. It doesn't hurt Occupy movement history to be featured on videos, on blogs and comments, in the news. Especially shown or highlighted or made viral on the new media. That is an attention getter, true, but the continued ORGANIZATION BUILDING, organizing despite the violence, despite the preaching to become passive again and wait for the electoral system to throw up a bunch of candidates, and vote for the "lesser evil", or find a "savior", or a "white knight" to help us is KEY.

    That organizing despite being forbidden, besides activists being threatened with job loss or other blackmail MUST go on.

    because the electoral parties despite some individuals who mean well inside them grew out of this system, thrive in this system and have become enablers and props for the system regardless of labels, Blue Team, Red Team, Dems, Republicans, libertarians, Conservies, libs.

    We need a new paradigm, and demonstrations, marches, widespread Occupys are discovering new tactics, which efforts are supported and grow the movement and its organization and that most important principle and test, shaping our future is kept in our own hands.

    Mind you, we can march and chew gum, vote on occasion when the opportunity presents, but have no illusions. Occupy and demonstrate, be activists, be alert, correspond, teach, strike, assemble, surround, learn, remonstrate, persuade, pick out deserving opponents to embarrass, discover the lies, the truth, air out what is systematically hidden, and do it at the same time on parallel tracks.

    That is the way to cast away illusions and prepare for struggles to come. On the issue of the violence, the police forces' deliberate attacks some may ask:

    "Why isn't AG Holder etc, or (fill in the name of a politician here) doing something?" answer:

    " Because, things are going as intended, nowhere fast or staying stalled, looking for magic solutions so far..". What is going on now is, officially there is no problem, except for crushing resistance. just like Quaddafi in Libya, or Assad in Egypt, or the mayors of Oakland and NYC and Seattle....etc. etc, As long as the people that are benefiting from the institutional injustice are not troubled by this escalation it will continue.

     Bankers' $26 billion of which the TBTF cabal gives up barely 4 to 5 billion or a thousand dollars or two per litigant is hush money, to make the nuisance go away.  The indemnification, the dropping of all pretense of criminal accountability and punishment is a massive triumph for the biggest thieves and abusers of economic power in our crumbling system.   The profiteers and the war criminals made over a trillion dollars from invading Iraq.  Their pals on Wall Street made several times that in the scams and grifting of ordinary Americans they ran past us at home while their buds ran over defenseless people elsewhere with full violence direct and unleashed.

          We as ordinary citizens will pay most of that bank "settlement" so they don't have to lose a dime, but use this new package to enmesh and ensnare us deeper into their blood sucking ways. Thanks, Democrats and Republicans, you are so bipartisanny and nice to your inferiors who will love you for this!   NOT.

    We know this electoral  process of no change or fake changes has no future. The alternative has to be fleshed out, made clearer and grow inside the old system. That is how it works, the way change becomes real and wins out.

    This signature....is currently under construction..

    by BeeDeeS on Mon Mar 19, 2012 at 12:10:38 PM PDT

    •  They are actually getting Rewarded for crimes n/t (4+ / 0-)
      Recommended by:
      aliasalias, Losty, glitterscale, BeeDeeS
      •  And, to all appearances, they're (1+ / 0-)
        Recommended by:
        DSWright

        expecting to be "greeted as liberators."
        They are as out of touch with the realities on Main Street as Cheney was with the people of Iraq.
        Anyone who cannot see the coming fall of our system need only look to the old Soviet Union.

        It is becoming increasingly clear that Too Big to Jail now includes our government and its agents. From war crimes to crimes against humanity to crimes against our citizenry, from the top officials to the cops beating protestors with impunity, the signs of a failing system have become all to visible.
        Something has to give. Much like climate change, the time to do something decisive to correct our course is almost past.


        "When the powerless are shut out of the media, we will make the media irrelevant" ~Anonymous~

        by Lisa Lockwood on Tue Mar 20, 2012 at 03:57:36 AM PDT

        [ Parent ]

    •  Politicians, including Obama (4+ / 0-)
      Recommended by:
      DSWright, aliasalias, joe wobblie, BeeDeeS

      are always saying we need to have a conversation about this or that. And then we never have that conversation. OWS is starting that conversation and apparently the ptb don't actually WANT that conversation after all.

      But we do. WE see the injustices, the criminality, the systemic failures. If the country was a body, a human body, you would have to say that it has critical organ failure. All of its regulatory systems are going bonkers. And the blood supply is out of whack. The heart is dying. I don't think, in the end, that we CAN wind up with our country back. I think we will have to create a new country.

      Congress is at 9% approval rating - within the +/- of making herpes more popular than congress! - Webranding

      by glitterscale on Mon Mar 19, 2012 at 02:55:42 PM PDT

      [ Parent ]

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