Obama's $26 Billion Boondoggle On Banks And You

[mudwhistle]

Ally Financial Inc., Bank of America Corp.,Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. all agreed to a settlement to pay the US government up to $26 billion dollars for alleged foreclosure abuse.

"The Obama administration made a full-court press over the past four days to secure the support of key state attorneys general, including those from Florida, California and New York." Nothing like a little presidential persuasion to help one with overcoming one's conscience. Because in America the push to abrogate the very foundation of contractual agreements comes from the very top. But wait, there's more - just to wash its hands of the guilt associated with this settlement which shows once and for all that the Democratic administration panders as much if not more to the banking syndicate as any republican administration, as it announces one settlement with one hand, with the other the US will sue banks over the mortgage reps and warranties issue covered extensively here, in the most glaringly obtuse way to distract that it is gifting trillions worth of contingent liabilities right back to the banks, not to mention discarding the whole concept of justice. From the WSJ: "Federal securities regulators plan to warn several major banks that they intend to sue them over mortgage-related actions linked to the financial crisis, according to people familiar with the matter. The move would mark a stepped-up regulatory effort to hold Wall Street accountable for its sale of bonds linked to subprime mortgages in 2007 and 2008. At issue is whether the banks misrepresented the poor quality of loan pools they bundled and sold to investors, the people said." Wait, let us guess -that particular lawsuit will end up in a... settlement? Ding ding ding. We have a winner. All today's news succeed in doing is finally wrapping up any and all legal loose ends, so that banks can finally wrap all outstanding litigation overhangs at pennies on the dollar. And if at the end of the day, they find themselves cash strapped, why the US will simply loan them more cash of course.

Government officials are on the verge of an agreement worth as much as $25 billion with five major banks, capping a yearlong push to settle federal and state probes of alleged foreclosure abuses by lenders.



The deal would represent the largest government-industry settlement since a multistate deal with the tobacco industry in 1998.



The agreement covers five banks: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. Together, the five handle payments on 55% of all outstanding home loans, or around 27 million mortgages, according to Inside Mortgage Finance.

These are the banks benefitting from Uncle Sam's decision to finally unclog the foreclosure pathway, as banks will no longer have to prove in court they are in fact the title owners.

But just in case popular outrage at this act is a little much, at the same time banks sued over fabricating Reps and Warranties will be: "Ally Financial Inc., Bank of America Corp., Citigroup Inc., Deutsche Bank AG and Goldman Sachs Group Inc." What an odd coincidence: gift with one hand, and take away with the other from virtually all the same banks.

Only it is not really taking away: it is merely putting the wheels in motion that will ultimately result in the same type of settlement that will make a mockery of the legal process in the US, and expose all the state Attorneys General as banker puppets, doing the bidding of the highest bidder... and of Obama of course.

Problem is Democrats practically forced banks to make loans to people who couldn't pay them back. The banks then took these toxic loans, repackaged them and resold them over and over until they couldn't get any sucker to buy them.

The settlement covers foreclosures from September 08' to December 2011.

The end result is it allows Obama to buy a few cheap votes at $1200 to $2000 a pop.

All in all, just a day's work for the administration as it does everything in its power to push the housing market higher at all costs, and further and further away from equilibrium pricing, which is what should be for a true and normal price appreciation to occur... something which will never happen of course as it would take far longer than the 4 years allotted to the president. If the process entails bending the law beyond recognition, so be it.

Links
US To Settle Fraudclosure For $25 Billion Even As It Channels Fake Tough Guy In Meaningless Lawsuit Against Very Same Banks | ZeroHedge
U.S., Banks Agree on $26 Billion Foreclosure Pact - WSJ.com
What the Pact Means for Homeowners - WSJ.com

 

[Cammmpbell]

Ally Financial Inc., Bank of America Corp.,Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. all agreed to a settlement to pay the US government up to $26 billion dollars for alleged foreclosure abuse.

"The Obama administration made a full-court press over the past four days to secure the support of key state attorneys general, including those from Florida, California and New York." Nothing like a little presidential persuasion to help one with overcoming one's conscience. Because in America the push to abrogate the very foundation of contractual agreements comes from the very top. But wait, there's more - just to wash its hands of the guilt associated with this settlement which shows once and for all that the Democratic administration panders as much if not more to the banking syndicate as any republican administration, as it announces one settlement with one hand, with the other the US will sue banks over the mortgage reps and warranties issue covered extensively here, in the most glaringly obtuse way to distract that it is gifting trillions worth of contingent liabilities right back to the banks, not to mention discarding the whole concept of justice. From the WSJ: "Federal securities regulators plan to warn several major banks that they intend to sue them over mortgage-related actions linked to the financial crisis, according to people familiar with the matter. The move would mark a stepped-up regulatory effort to hold Wall Street accountable for its sale of bonds linked to subprime mortgages in 2007 and 2008. At issue is whether the banks misrepresented the poor quality of loan pools they bundled and sold to investors, the people said." Wait, let us guess -that particular lawsuit will end up in a... settlement? Ding ding ding. We have a winner. All today's news succeed in doing is finally wrapping up any and all legal loose ends, so that banks can finally wrap all outstanding litigation overhangs at pennies on the dollar. And if at the end of the day, they find themselves cash strapped, why the US will simply loan them more cash of course.

Government officials are on the verge of an agreement worth as much as $25 billion with five major banks, capping a yearlong push to settle federal and state probes of alleged foreclosure abuses by lenders.



The deal would represent the largest government-industry settlement since a multistate deal with the tobacco industry in 1998.



The agreement covers five banks: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. Together, the five handle payments on 55% of all outstanding home loans, or around 27 million mortgages, according to Inside Mortgage Finance.

These are the banks benefitting from Uncle Sam's decision to finally unclog the foreclosure pathway, as banks will no longer have to prove in court they are in fact the title owners.

But just in case popular outrage at this act is a little much, at the same time banks sued over fabricating Reps and Warranties will be: "Ally Financial Inc., Bank of America Corp., Citigroup Inc., Deutsche Bank AG and Goldman Sachs Group Inc." What an odd coincidence: gift with one hand, and take away with the other from virtually all the same banks.

Only it is not really taking away: it is merely putting the wheels in motion that will ultimately result in the same type of settlement that will make a mockery of the legal process in the US, and expose all the state Attorneys General as banker puppets, doing the bidding of the highest bidder... and of Obama of course.

Problem is Democrats practically forced banks to make loans to people who couldn't pay them back. The banks then took these toxic loans, repackaged them and resold them over and over until they couldn't get any sucker to buy them.

The settlement covers foreclosures from September 08' to December 2011.

The end result is it allows Obama to buy a few cheap votes at $1200 to $2000 a pop.

All in all, just a day's work for the administration as it does everything in its power to push the housing market higher at all costs, and further and further away from equilibrium pricing, which is what should be for a true and normal price appreciation to occur... something which will never happen of course as it would take far longer than the 4 years allotted to the president. If the process entails bending the law beyond recognition, so be it.

Links
US To Settle Fraudclosure For $25 Billion Even As It Channels Fake Tough Guy In Meaningless Lawsuit Against Very Same Banks | ZeroHedge
U.S., Banks Agree on $26 Billion Foreclosure Pact - WSJ.com
What the Pact Means for Homeowners - WSJ.com

You're talking chicken feed. Have you forgotten the $870 billion bank fiasco planned and executed by Bush, Bernanke and Paulson. You Right Wingers are easy to figure. No matter what you do it's fine and no matter what Obama does is not. It's called Right White Whine!

 

[LoneLaugher]

And....that sneaky bastard planned the hulabaloo over birth control to take over the news cycle and hide this terrible plan to help people from the electorate.

 

[mudwhistle]

Another program gives free cell-phones to the poor.

Problem is you're paying for it.

Look at your phone bill. If you see a fee labeled Universal Service Fund....that's the part of your bill that goes to cell-phones for the poor.

Links

Washington Footing the Cell Phone Bill for Millions of Low Income Americans - Yahoo! News

Americans Aren't Entitled to Have Free Cellphones - Yahoo! News

 

[mudwhistle]

And....that sneaky bastard planned the hulabaloo over birth control to take over the news cycle and hide this terrible plan to help people from the electorate.

Actually he bragged about this yesterday in a speech. He said it was to help people that paid their bills, and he also claimed he was going to help people that had foreclosures.

The truth is all they're going to get is a little cash.

 

[LoneLaugher]

Um.....sarcasm alert.

 

[G.T.]

Another program gives free cell-phones to the poor.

Problem is you're paying for it.

Look at your phone bill. If you see a fee labeled Universal Service Fund....that's the part of your bill that goes to cell-phones for the poor.

Links

Washington Footing the Cell Phone Bill for Millions of Low Income Americans - Yahoo! News

Americans Aren't Entitled to Have Free Cellphones - Yahoo! News

Of course, you dont know the extent of the service that they get, or else you wouldn't be bitching.

Also - not so sure why you'd be against this shit. The Banks all but admit to fraud by signing on, and your alternative is to let them get away with it? This is the Gov'ts alternative to long and expensive court cases. You should be thrilled but Noo000o000o.

 

[Cammmpbell]

And....that sneaky bastard planned the hulabaloo over birth control to take over the news cycle and hide this terrible plan to help people from the electorate.

You should try to get used to that sneaky bastard. With that bunch of arrogant, egotistical clowns you're choosing from Obama will be re elected by a damn site.

 

[zeke]

Problem is Democrats practically forced banks to make loans to people who couldn't pay them back.

Oh bull shit. How many loans did you write and fund during the period you say the Dems were forcing banks to make shit loans?

I wrote loans for a living. Brokers were finding more and more ways to part people from their money.
They needed no help from Dems or anyone else. Greed became the ruling force in their business model. Well it did help alot when banking laws were broken down so that any swinging dick could get in the mortgage business.

Why didn't the Rethugs in Congress bring a halt to the activity you say the Dems engaged in?

 

[rdean]

Republicans only like bailouts when it helps those already rich.

When it comes to the middle class, their policy is, "Let them die".

 

[Decepticon]

The idea that dems "forced" banks to loan to people who didn't deserve it is as bunk as the idea that labor unions "force" companies out of business.

In BOTH cases, banks AND management also signed these shitty agreements, yet you NEVER hear CONZ blaming the people on the OTHER side of the paper.

They are not unlike the SCUM who inhabit Jabba's palace and who enjoy nothing more than watching some poor schlub devoured before them by the Rancor.

The only problem is, in this case, is that the "penalty" for non-compliance with the government program to encourage home ownership was NOTHING. Yes, that's right....NO PENALTY whatsoever if you didn't participate. None.

So all you have to do is ask these conservatives HOW EXACTLY dems "forced" banks to make bad loans and they'll sputter and spew and provide ABSOLUTELY NOTHING because it's not true.

But don't believe me....The law they're looking at is the Community Reinvestment Act.
Community Reinvestment Act - Wikipedia, the free encyclopedia

Once again....a DECEPTICON FACT BASED rant utterly destroys CON talking points, leaving them a smoking ruin, smote across the board.

 

[zeke]

deception, well said.

When I used to work phone banks soliciting re fi;s, there was a Dem standing right over my shoulder making sure I offered to lend under the worst possible terms, to anyone that answered the phone.

And when the salesmen or women representing the non conforming sub prime lenders would come to my office to solicit piss poor quality loans, a Dem rode right along with them to make sure I offered some poor borrower a real shitty loan meant to seperate him/her from their money and house.


Yes sir ree I had Dems all over my office trying to force me to make those shitty loans. Yes I sure did.

Why, most of the time there were Dems in the underwriting office. Forcing underwriters to approve these loans. Sometimes the Dems had to put a gun to their heads.

These are little known facts and when they come out, look out. Shitty loans will hit the fan.

 

[Cammmpbell]

Republicans only like bailouts when it helps those already rich.

When it comes to the middle class, their policy is, "Let them die".

The Republicans will be satisfied when the people who used to be the middle class are earning the same as a day laborer in Maylasia. That way the greedy pricks at the top will be able to enjoy a larger bottom line profit. That's what has changed anyway.

In the late 40's and early 50's a corporate executive earned 12-15 times what a carpenter or plumber made. By the 1970's that multiplier had increased to 50 times as much. In 2010 the average CEO made 550 times what an ordinary working American earned. Does anybody doubt that they'll never be satisfied

 

[Claudette]

Oh theres plenty of blame to go around in the whole meltdown fiasco.

None of them are innocent and that includes those buying homes they knew they couldn't afford.

This 25 billion isn't taxpayer money and I doubt any underwater homeownere is gonna get much out of that 25 Billion.

The Good, the Bad and the Ugly. Its kinda tough to figure out who the good guys are though.

On second thought. I don't think there are any in this whole scenario.

 

[Full-Auto]

Ally Financial Inc., Bank of America Corp.,Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. all agreed to a settlement to pay the US government up to $26 billion dollars for alleged foreclosure abuse.

"The Obama administration made a full-court press over the past four days to secure the support of key state attorneys general, including those from Florida, California and New York." Nothing like a little presidential persuasion to help one with overcoming one's conscience. Because in America the push to abrogate the very foundation of contractual agreements comes from the very top. But wait, there's more - just to wash its hands of the guilt associated with this settlement which shows once and for all that the Democratic administration panders as much if not more to the banking syndicate as any republican administration, as it announces one settlement with one hand, with the other the US will sue banks over the mortgage reps and warranties issue covered extensively here, in the most glaringly obtuse way to distract that it is gifting trillions worth of contingent liabilities right back to the banks, not to mention discarding the whole concept of justice. From the WSJ: "Federal securities regulators plan to warn several major banks that they intend to sue them over mortgage-related actions linked to the financial crisis, according to people familiar with the matter. The move would mark a stepped-up regulatory effort to hold Wall Street accountable for its sale of bonds linked to subprime mortgages in 2007 and 2008. At issue is whether the banks misrepresented the poor quality of loan pools they bundled and sold to investors, the people said." Wait, let us guess -that particular lawsuit will end up in a... settlement? Ding ding ding. We have a winner. All today's news succeed in doing is finally wrapping up any and all legal loose ends, so that banks can finally wrap all outstanding litigation overhangs at pennies on the dollar. And if at the end of the day, they find themselves cash strapped, why the US will simply loan them more cash of course.

Government officials are on the verge of an agreement worth as much as $25 billion with five major banks, capping a yearlong push to settle federal and state probes of alleged foreclosure abuses by lenders.



The deal would represent the largest government-industry settlement since a multistate deal with the tobacco industry in 1998.



The agreement covers five banks: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. Together, the five handle payments on 55% of all outstanding home loans, or around 27 million mortgages, according to Inside Mortgage Finance.

These are the banks benefitting from Uncle Sam's decision to finally unclog the foreclosure pathway, as banks will no longer have to prove in court they are in fact the title owners.

But just in case popular outrage at this act is a little much, at the same time banks sued over fabricating Reps and Warranties will be: "Ally Financial Inc., Bank of America Corp., Citigroup Inc., Deutsche Bank AG and Goldman Sachs Group Inc." What an odd coincidence: gift with one hand, and take away with the other from virtually all the same banks.

Only it is not really taking away: it is merely putting the wheels in motion that will ultimately result in the same type of settlement that will make a mockery of the legal process in the US, and expose all the state Attorneys General as banker puppets, doing the bidding of the highest bidder... and of Obama of course.

Problem is Democrats practically forced banks to make loans to people who couldn't pay them back. The banks then took these toxic loans, repackaged them and resold them over and over until they couldn't get any sucker to buy them.

The settlement covers foreclosures from September 08' to December 2011.

The end result is it allows Obama to buy a few cheap votes at $1200 to $2000 a pop.

All in all, just a day's work for the administration as it does everything in its power to push the housing market higher at all costs, and further and further away from equilibrium pricing, which is what should be for a true and normal price appreciation to occur... something which will never happen of course as it would take far longer than the 4 years allotted to the president. If the process entails bending the law beyond recognition, so be it.

Links
US To Settle Fraudclosure For $25 Billion Even As It Channels Fake Tough Guy In Meaningless Lawsuit Against Very Same Banks | ZeroHedge
U.S., Banks Agree on $26 Billion Foreclosure Pact - WSJ.com
What the Pact Means for Homeowners - WSJ.com

You're talking chicken feed. Have you forgotten the $870 billion bank fiasco planned and executed by Bush, Bernanke and Paulson. You Right Wingers are easy to figure. No matter what you do it's fine and no matter what Obama does is not. It's called Right White Whine!

Hey you coward piece of shit blowhard. You never acknowledge it took both parties.

You are a worthless dirt bag.

 

[G.T.]

Oh theres plenty of blame to go around in the whole meltdown fiasco.

None of them are innocent and that includes those buying homes they knew they couldn't afford.

This 25 billion isn't taxpayer money and I doubt any underwater homeownere is gonna get much out of that 25 Billion.

The Good, the Bad and the Ugly. Its kinda tough to figure out who the good guys are though.

On second thought. I don't think there are any in this whole scenario.

It's not designed to give the homeowners any of the money.

It's designed to pay for re-fi's and things of that nature.

 

[Cammmpbell]

Republicans only like bailouts when it helps those already rich.

When it comes to the middle class, their policy is, "Let them die".

The Republicans will be satisfied when the people who used to be the middle class are earning the same as a day laborer in Maylasia. That way the greedy pricks at the top will be able to enjoy a larger bottom line profit. That's what has changed anyway.

In the late 40's and early 50's a corporate executive earned 12-15 times what a carpenter or plumber made. By the 1970's that multiplier had increased to 50 times as much. In 2010 the average CEO made 550 times what an ordinary working American earned. Does anybody doubt that they'll never be satisfied

 

[mudwhistle]

Ally Financial Inc., Bank of America Corp.,Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. all agreed to a settlement to pay the US government up to $26 billion dollars for alleged foreclosure abuse.

"The Obama administration made a full-court press over the past four days to secure the support of key state attorneys general, including those from Florida, California and New York." Nothing like a little presidential persuasion to help one with overcoming one's conscience. Because in America the push to abrogate the very foundation of contractual agreements comes from the very top. But wait, there's more - just to wash its hands of the guilt associated with this settlement which shows once and for all that the Democratic administration panders as much if not more to the banking syndicate as any republican administration, as it announces one settlement with one hand, with the other the US will sue banks over the mortgage reps and warranties issue covered extensively here, in the most glaringly obtuse way to distract that it is gifting trillions worth of contingent liabilities right back to the banks, not to mention discarding the whole concept of justice. From the WSJ: "Federal securities regulators plan to warn several major banks that they intend to sue them over mortgage-related actions linked to the financial crisis, according to people familiar with the matter. The move would mark a stepped-up regulatory effort to hold Wall Street accountable for its sale of bonds linked to subprime mortgages in 2007 and 2008. At issue is whether the banks misrepresented the poor quality of loan pools they bundled and sold to investors, the people said." Wait, let us guess -that particular lawsuit will end up in a... settlement? Ding ding ding. We have a winner. All today's news succeed in doing is finally wrapping up any and all legal loose ends, so that banks can finally wrap all outstanding litigation overhangs at pennies on the dollar. And if at the end of the day, they find themselves cash strapped, why the US will simply loan them more cash of course.

Government officials are on the verge of an agreement worth as much as $25 billion with five major banks, capping a yearlong push to settle federal and state probes of alleged foreclosure abuses by lenders.



The deal would represent the largest government-industry settlement since a multistate deal with the tobacco industry in 1998.



The agreement covers five banks: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. Together, the five handle payments on 55% of all outstanding home loans, or around 27 million mortgages, according to Inside Mortgage Finance.

These are the banks benefitting from Uncle Sam's decision to finally unclog the foreclosure pathway, as banks will no longer have to prove in court they are in fact the title owners.

But just in case popular outrage at this act is a little much, at the same time banks sued over fabricating Reps and Warranties will be: "Ally Financial Inc., Bank of America Corp., Citigroup Inc., Deutsche Bank AG and Goldman Sachs Group Inc." What an odd coincidence: gift with one hand, and take away with the other from virtually all the same banks.

Only it is not really taking away: it is merely putting the wheels in motion that will ultimately result in the same type of settlement that will make a mockery of the legal process in the US, and expose all the state Attorneys General as banker puppets, doing the bidding of the highest bidder... and of Obama of course.

Problem is Democrats practically forced banks to make loans to people who couldn't pay them back. The banks then took these toxic loans, repackaged them and resold them over and over until they couldn't get any sucker to buy them.

The settlement covers foreclosures from September 08' to December 2011.

The end result is it allows Obama to buy a few cheap votes at $1200 to $2000 a pop.

All in all, just a day's work for the administration as it does everything in its power to push the housing market higher at all costs, and further and further away from equilibrium pricing, which is what should be for a true and normal price appreciation to occur... something which will never happen of course as it would take far longer than the 4 years allotted to the president. If the process entails bending the law beyond recognition, so be it.

Links
US To Settle Fraudclosure For $25 Billion Even As It Channels Fake Tough Guy In Meaningless Lawsuit Against Very Same Banks | ZeroHedge
U.S., Banks Agree on $26 Billion Foreclosure Pact - WSJ.com
What the Pact Means for Homeowners - WSJ.com

You're talking chicken feed. Have you forgotten the $870 billion bank fiasco planned and executed by Bush, Bernanke and Paulson. You Right Wingers are easy to figure. No matter what you do it's fine and no matter what Obama does is not. It's called Right White Whine!

Half which Bush issued and the other half Obama issued to banks.

Btw, I guess you don't remember who the Junior Senator was who chaired the now infamous TARP meeting? Who also supported the bailout when everyone was up in arms about it?

Well I do.

Obama Urges Congress Not to Block the Bailout - TIME

 

[LordBrownTrout]

Sweet deal for the banks. We get screwed again.

"The agreement covers five banks: Ally Financial Inc., Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co., and Wells Fargo & Co. Together, the five handle payments on 55% of all outstanding home loans, or around 27 million mortgages, according to Inside Mortgage Finance.

These are the banks benefitting from Uncle Sam's decision to finally unclog the foreclosure pathway, as banks will no longer have to prove in court they are in fact the title owners."

 

[mudwhistle]

Another program gives free cell-phones to the poor.

Problem is you're paying for it.

Look at your phone bill. If you see a fee labeled Universal Service Fund....that's the part of your bill that goes to cell-phones for the poor.

Links

Washington Footing the Cell Phone Bill for Millions of Low Income Americans - Yahoo! News

Americans Aren't Entitled to Have Free Cellphones - Yahoo! News

Of course, you dont know the extent of the service that they get, or else you wouldn't be bitching.

Also - not so sure why you'd be against this shit. The Banks all but admit to fraud by signing on, and your alternative is to let them get away with it? This is the Gov'ts alternative to long and expensive court cases. You should be thrilled but Noo000o000o.

It amounts to a shakedown.

Jessie Jackson was really good at those.

Funny you see no problem with the Obama Administration taking this tactic to a whole other level and using taxpayer funds to do it. Seems like a personal vendetta to me. Social-justice and all that. Who cares that nobody held a gun to anyone's head or tricked anyone into signinmg anything. If been in the lending business. Consumers rip off banks for billions and nobody goes after them. They could care less if their credit is ruined.

It's all a show anyway. Nobody is being punished. It just allows Obama to push his class-warfare nonsense and act like a hero