Thanks to federal agencies “cutting in” on deals with lenders to settle foreclosure problems and try to resolve the lack of confidence instilled in consumers thanks to last fall’s robo-signing fiasco, some lenders may avoid the $20 billion in penalties for faulty foreclosures proposed by the investigative team of attorneys general several weeks ago[1]. According to a report from Bloomberg, Bank of America, Wells Fargo and several other mortgage servicers are “more likely to dodge a threatened $20 billion in penalties…by signing deals [with federal agencies] without fines”[2]. Currently, the Federal Reserve, the Office of the Comptroller of Currency, Office of Thrift Supervision and the FDIC are making deals without the AGs on board in an effort to “ease pressure on banks,” said former Fed attorney Gilbert Schwartz. Schwartz added that this handicaps the AGs’ ability to negotiate because having deals in place already will “set an upper limit on what the banks would be willing to do.”
Thomas Miller, Iowa’s AG, has released a statement expressing his “disappointment” in these possible settlements and pointing out that working with the AGs would “protect the public interest to the fullest.” Other AG representatives have stated that any settlements reached will be viewed “as a floor, not a ceiling” on what the group might seek in damages from lenders.
Do you think that this move to cut out the AGs is a questionable one?
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[1] http://www.bizjournals.com/sanfrancisco/morning_call/2011/04/wells-bofa-may-skip-20b-foreclosure.html
[2] http://www.bloomberg.com/news/2011-04-06/banks-get-edge-in-talks-on-foreclosure-penalties-as-feds-settle.html
Money does the talking. Lots of our elected officials, judges, AGs and regulators, etc. are heavily influenced by the banks’ massive lobbying
funds. Justice and integrity of this country has become a distance reality. It’s up to us to present the truth and reality. We are the evidence how
banks defrauded this great nation and its people.
It’s high time to break up ‘too big to fail’ banks and demand criminal investigation and criminal prosecution.
Please sign the petition at http://www.wellsfargomortgagefraud.com and join the fight. Stop and destroy the business model built on fraud.
He (Glenn Beck) blames “big government” which is nonsense. “Big Government” is a symptom of damage control from the very existence of a small private group of tyrants given government powers to issue the nation’s currency (FED). It allows a few bankers, investment tycoons and war mongers to rape any and all “wealth” left in America, that was built on a solid foundation of Constitutional money (silver and gold). What really drives these thieves are the teleprompter dolts (politicians) who parrot the rhetoric of the Council on Foreign Relations and their ilk and convince the “Dumb-Masses” that government should continue on the status-quo.
AG, Tom Miller, of Iowa, is the smartest guy in the state of Iowa. And has been for 55 years. He is 66. He taught classes in our parochial H.S. while he was still attending it. And we were the top ranked H.S. in the state, academically. He has everyone’s trust from both parties, and has deserved it.