Why not give the 700 b to home owners , and ask them

[UndertheOcean]

for community service in return . Much fairer than feeding those swine in wall street

[napi21]

1. Because a lot of those bad loans are not necessarily private

duped homeowners, but are commercial building & house flippers. I have no idea what % are the duped individuals, but something tells me, if you're even talking about a 10%-20% being commercial, the $$'s are astronomical compared to individuals. How could you leagally separate them?

[MichiganVote]

2. Because the loans were sold and resold and parceled and diced and spliced so much...

they are not actually mortgage loans anymore. The banks took their money when they sold the loans to those who then turned around and resold them in batches of debt with a mixture of at risk mortgages, iffy mortgages and sound mortgages. This set up enabled the banks to maintain higher liquidity which enabled them to offer more and more credit.