REPORT: The Major Banks Are About To Strike A Big, $20 Billion Foreclosure Settlement

[stockholmer]

Source: Business Insider

The big banks are all up nicely, in part, perhaps, because of a Fox Business report http://www.foxbusiness.com/markets/2011/10/10/foreclosure-settlement-imminent-bank-sources-say/ about how they're about to sign a foreclosure-gate settlement with the DoJ and most states attorneys general.

A $20 billion settlement, which would go in part to some kind of victim "fund" could be hammered out in a matter of days.

Here's the thing though: The last news from this front was that California had dropped out of talks, and so without California, it's hard to imagine that any deal would involve the finality.

It's also not clear that New York would be on board.

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Read more: http://www.businessinsider.com/report-of-foreclosure-settlement-2011-10

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Trial balloon? The markets are up big on this news.

Bear in mind, $20 billion is less than the US government spends in TWO DAYS, and last year alone, the banks paid out $150 billion just in bonuses. I also expect this will give the banksters further reason to toss more fees onto their customers' backs. Will this be prohibited in the settlement langiage? What of homeowners in states that do not agree to this settlement? They will no longer have the force of all 50 state AG's behind them as a counterweight to the bank's huge power.

[dmosh42]

1. This will stop any chance of criminal charges from their foreclosure...

activities in those states. And $20 billion is probably a pittance of what's involved. Just more letting the banksters off the hook!

[Hell Hath No Fury]

8. Ding ding ding ding!

We have a WINNER!

Take it from a Californian who watched Arnie settle with the energy companies who fucked over my State just as our AG filed a huge suit against those very same companies. Not only did we get a fraction of what was owed us, but it put any attempt at criminal prosecution right off the agenda. :mad:

[truebrit71]

2. Matt Taibbi had an excellent piece about this rip-off...

...and it is one that is being pushed by the Obama administration...http://www.rollingstone.com/politics/blogs/taibblog/attorneys-general-settlement-the-next-big-bank-bailout-20111005

[aquart]

6. I'm sure Geithner loves it.

[mod mom]

12. "the Obama administration’s current plan is to let them all walk after paying a few shekels apiece"

:mad: thanks for the link!

[dixiegrrrrl]

13. key bit of info from the piece:

“ will be a bigger bailout than TARP.”

"Any foreclosure settlement will allow the banks to pay one relatively small bill to cover all of their legal liabilities stemming from the monstrous frauds they all practiced in the years leading up to the 2008 crash ......."

Just remember, it is the Democratic administration that is allowing this, the Just-US Dept is doing
NOTHING to prevent continuation of fraud.

[Supersedeas]

18. thanks for the link

[QC]

3. So hopeful! n/t

[Angry Dragon]

4. In my opinion it is an injustice to the American people

it borders on terrorism
it is a corruption of the judicial system of this country

it tells the American people it is okay to commit fraud and theft

[aquart]

5. This is pennies.

And will only amp up public rage. Dumb deal.

[dixiegrrrrl]

7. Couple of things:

1. BP loudly proclaimed it had a 20 billion "settlement" fund also, and then spent 2 years figuring out ways to not spend it.

2. I and a few others here said this would happen, when Mortgage Gate was starting to get attention.
There would be a civil "settlement", NO criminal charges for the massive fraud, and no change.

Good news: more fuel for the Occupy fire.

Bad news: ALL mortgage holders are screwed, one way or the other.
There is no way in hell I trust my "servicer" BOA, to give me an honest deed if I ever pay off the mortgage.

I am furious at the this news, not surprised tho.

[TBF]

9. Translation: 1% no liability, 99% getting screwed again. nt

[Selatius]

10. The agreement basically papers over widespread document fraud perpetrated by the banks.

If one is simply seeking monetary gain out of the banks for their fraudulent practices, yes, it would be a good idea to take the 20 billion, even if it is a small amount compared to what the banks typically deal with on Wall Street.

On the other hand, if it is the rule of law you are looking for, then taking the deal is decidedly not the thing to do because it will simply absolve the banks of any wrongdoing. There will likely be a lengthy trial, and there are no guarantees the trial will be successful, but if it is successful, the damages awarded to the plaintiff might actually be greater than just 20 billion.

[whatchamacallit]

11. Another total miscarriage of justice. Where's our president... again...

This is the reason for OWS.

[tawadi]

14. kicked

for more exposure.

[Bigmack]

15. Would this settlement preclude investors from suing..?

We have to remember, a lot of the people screwed in this mess are Very Important People, and they ain't gonna let go of this easily.

I'm waiting for the 1% ers to go after each other around this thing.

[unblock]

16. the markets are up big on europe, not this.

$20bn is a drop in the bucket as far as foreclosures go, and getting the money into the hands of people who will do something economically constructive will take a while. settlements like this can take along time before reaching the victims.

[SoCalDem]

17. "Sorry we threw you out of your house". Call this number

1-800-hah-haha




ask for "Peggy"

[truedelphi]

19. Like Michael Hudson keeps saying - "The Obama

Administration has de-criminalized Banking Fraud."

With Attorney General Holder, who once represented the Master Mind of Death Squads - what else could we expect? That he and his boss would be for We the People?

[lindysalsagal]

20. Question about mortgage holders about to be forclosed:

How will it affect people who have been in foreclosure limbo for years? Does this do anything to release them from their balooned mortgage principles? Does is reduce their interest rate?

[No Elephants]

21. Change we can bereave in.

[fasttense]

22. Just another sell out of the American people and a blanket get out of jail free

card for the banksters.

This is just so sad. It is the death of the rule of law. Now onto the rule of the whim of a fat rich man.

[Scuba]

23. Steal a trillion, settle for 20 billion. They're good at math. n/t