The latest in the state attorneys general negotiations with major lenders is an attempt to get immunity for major banks over irregularities in handling foreclosures in light of evidence emerging that banks are continuing to file questionable documents[1]. Bank of America, Wells Fargo, Citigroup, JP Morgan Chase and Ally Financial could get immunity from civil lawsuits by states in exchange for up to $25 billion in penalties and commitments to follow new rules.
Wells Fargo recently paid $85 million to settle civil charges that it falsified loan documents and pushed borrowers toward subprime mortgages with higher interest rates[2]. In light of facing civil suits like that one, paying $25 billion could ultimately be a deal. Do you think that this proposed settlement term is fair? Should the banks take it?
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[1] http://www.reuters.com/article/2011/07/20/foreclosure-banks-immunity-idUSL3E7IK4EN20110720
[2] http://www.google.com/hostednews/ap/article/ALeqM5il5l74WqsGWbgKiQ9LeTXmf0914A?docId=1f2480785aef413ba941e74b3de0e74a
He’ll no! My bank promised a loan of 50% of appraised value. When their appraiser came in at $1,007,000, they offered a loan of $400,000 to be drawn as needed and place mortgages totaling $400,000 on the property. When the loan amount drawn reached $275,000 the refused any additional draws and demanded interest payments. They then foreclosed and have listed the property for $480,000. How can we set a limit on crooks like this?
How dare they do this, once again the little guys suffer and the big guys get away with stuff. How do we petition to stop this, it is outrageous that they get to cut deals.
I think it’s crazy, they should be sued and imprisoned for their actions, Bankers have been ripping off people for years and giving them future immunity for acts they are presently committing is insane because it gives them no incentive to act in accordance with law.
So, now it appears that the big banks are not only “Too Big To Fail”, but they are also “Too Big To Prosecute”. I’m in the wrong industry. And one more thing – where is the logic in”Too Big To Prosecute” when the big banks continue to break the law? Jim Myers
I assume such lawsuits as this benefit only the states budgets… not the consumer.. thus with the states so far in debt they care not that they settle for us and give us nothing… NO NO.. class action suit against the banks or individual suits for fraud.
A similar (insurance company protection) action has been passed recently in Texas basically giving immunity and protection from civil law suits to the insurance companies. The little man gets screwed again, and the big boys always seem to win.
Gives new meaning to the mortgage term “Pre-Payment Penalty”.
thats unbelievable i guess the money goes to pay for state pensions unbelievable
How pathetic that money seems to be winning. This country’s justice system has been thrown out the window. Maybe if all the AG’s get sued, all the public trustees, all the senior Freddie and Fannie people, all the OCC and OTS officials, all the people who have run Tarp and HEMP and Hope and whever other pathetic excuse for a program, and every President and Vice-President of every major Bank, the SEC, ALL for criminal negligence for selling the people of the United States down the river that might be one avenue. The fraud is so massive, that even right minded people can’t get their arms around the problem. What 99% of the populous don’t realize, is that if the Bank’s get this kind of relief, they also have committed fraud on every citizen who has a mortgage through a Bank in this country. All mortgages, in foreclosure or not are effected by the Bank’s fraud. They have tainted by their actions every mortgage in the country. Keep fighting for justice otherwise you will be robbed.
The unholy alliance continues its inexorable expansion – big government alligned with big banking, big business, and big media, which is why the nation finds itself at the precipice. Resilient and creative as the private sector has proven itself to be over the years, their greed and lust for power may finally kill the goose that lays the golden eggs.
I saw this coming months ago – isn’t it always the way?
What we serfs must realize is that “big governmnet” IS big business, there is no difference between then. Twenty five billion dollars is peanuts for these banks to pay, but you can bet your empty wallet that the cost of the fine will be passed to us lowly serfs.
Presently, there are thousands of people that have joined mass litigation suits against the banks. This is why they halted all foreclosures. They were just biding time until they could buy off the states and get out from under legal entanglements that could have potentially cost them trillions and criminal indictments.
And what about all these pending law suits? Will they all get kicked to the curb? Probably so! Can we stop this? I believe we can. But, it will take a concerted effort by all citizens to mount a publicity campaign to make it well known that a backroom deal is quietly being contrived to let the bankster criminals off the hook. We must stop being spectators and get off our duffs and become activists, and I don’t mean going to the ballot box. As we have seen, voting has become a useless activity in this country. We should be screaming for criminal indictments!
Big money (our money) reaches the pocket of every lying politician we have put into office. They say that power corrupts, but it is really money that is responsible. So, are we going to sit by and lose once again, or are we at least going to make an attempt to seek a small iota of justice? We should mount a campaign that calls for NO SETTLEMENTS, but does call for CRIMINAL INDICTMENTS.
We have power in unity.
This is the rule of law and due process being sold to corp america.
The rules/laws that allow murderers to go free if due process is not met is at the heart of a /our legal system, the envy of the world, in that it holds the legal and corporate system accountable at any cost.
We are being sold out at any level
Obame selling trillions of dollars of bank liabilities of the major banks to Freddie and Fannie for the lies they sold loans with and should have had to buy back is one of the biggest roberies possible. Fan and Fred will now have to eat all of those losses instead. Those banks make $25 billion in eight hours. It could not be a better deal for them. Now the AGs are doing the same.
Thye people hear about a $50B fine and it seems like a big number to them Yeah
These big banks need to be let go. MJaybe a new president wont be led by the nose by the likes of Geitner
Just today, I had two things happen that show just how corrupt banksters are: I have a short sale listing, and a MORTGAGE BROKER RECOMMENDED that the owner try to “ride it out” while she purchases a NEW home (with another FHA loan)…nothing like recommending a bump and dump! The other thing was that Wells Fargo INSISTED that the same owner (who is in danger of imminent default due to a medical nightmare) HAS to default on her mortgage before they will allow a short sale. Oh, really? If I can get this on tape, it WILL go viral. Their valuation from five years ago was DOUBLE what the unit will sell for today, AND the NEW buyer is getting an FHA loan, so…guess what? The appraisal determines both the short sale price AND the new buyer’s purchase price. Guess the appraisal will be a lie, don’t you? I’ll keep you posted. Every day, the banks lie to consumers and wonder why we’re having a huge resurgence of people moving their money to credit unions! They’re not much better, but at least you have a STAKE in a credit union!
$25 Bil. fines “AND” a commitment to follow new rules !! Who is getting paid off in this deal ?