Sen. Warren P.R.: Senate Passes Bipartisan Truth in Settlements Act

[laserhaas]

Source: Press Release Senator Warren's website

WASHINGTON, DC - On Monday evening, the United States Senate passed by unanimous consent the Truth in Settlements Act, a bipartisan bill introduced by Senators Elizabeth Warren (D-Mass.) and James Lankford (R-Okla.) to increase transparency around major settlements reached by federal enforcement agencies.

When federal agencies close investigations and settle cases, they often tout the dollar amount obtained from the offender, but in many cases that amount is misleading because of tax deductions and other "credits" built into the settlement that reduce the settlement's true value. The Truth in Settlements Act will require more accessible and detailed disclosures about these agreements to allow the public to hold regulators accountable for the true value of these deals.

"The idea behind this bill is straightforward: If the government is going to cut deals on behalf of the American people, the American people are entitled to know what kind of a deal they're getting," said Senator Warren. "I'm glad the Senate unanimously passed the Truth in Settlements Act to provide more transparency around government settlements. This legislation will shut down backroom deal-making and ensure that Congress, citizens and watchdog groups can hold regulatory agencies accountable for strong and effective enforcement that benefits the public interest."
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Read more: http://www.warren.senate.gov/?p=press_release&id=964

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This BILL will stop the games being played upon the public - as noted from the FACTS sheet...

Truth in Settlement Act FACT Sheet (in PDF format - HERE)

. The Department of Justice (DOJ) and other entities recently settled a case with JPMorgan Chase for
$13 billion. However, it appears that approximately $11 billion of the settlement amount will be tax
deductible, which reduces the ultimate value of the settlement to the taxpayer by up to $4 billion.

Federal Agency Settlements that Include “Credits” for Routine Conduct

1. In 2013, the Federal Reserve and Office of the Comptroller of the Currency claimed that they settled for
$8.5 billion with 13 mortgage servicers accused of illegal foreclosure practices. Of that $8.5 billion
figure, $5.2 billion – over 60% of the settlement value – was in the form of “credits” for what the
agencies described as “loan modifications and forgiveness of deficiency judgments.” But that vague
public statement left out a key detail: servicers could simply rack up those credits by forgiving mere
fractions of large unpaid loans. For example, a servicer that wrote down $15,000 of a $500,000 unpaid
loan balance would get a credit for $500,000, not $15,000.

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Here's the actual BILL

http://www.gpo.gov/fdsys/pkg/BILLS-114s1109es/pdf/BILLS-114s1109es.pdf
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[JDPriestly]

1. K&R.

[laserhaas]

2. Thanks -- and I'm with you on Warren for 2016

But -- with her and Bernie being almost 1 and the same on ideals;
IMO they are unbeatable as a team -- Sanders/Warren 2016

[Betty Karlson]

3. K&R n/t