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Reply #9: Why the bank-settlement talks are likely to drag on indefinitely [View All]

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ProSense Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Aug-22-11 01:05 PM
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9. Why the bank-settlement talks are likely to drag on indefinitely
Why the bank-settlement talks are likely to drag on indefinitely

Today brings dueling stories in the NYT and the WSJ on the status of the bank foreclosure-settlement talks. At issue is the question of whether the banks should be given immunity with respect to lawsuits surrounding their securitization shenanigans. Heres the WSJ, saying quite clearly that they wont:

U.S. and state officials dismissed the push for broad immunity as a nonstarter, according to a federal official involved in the talks, but they have countered with a narrower offer. It would cover robo-signing and other servicer-related conduct but leave banks open to potential legal action for wrongdoing in fair lending and securitization, according to people familiar with the situation. Attorneys general in California, Delaware, Massachusetts and New York have said they are investigating mortgage-securitization practices.

In the NYT, by contrast, Gretchen Morgenson says that New Yorks Eric Schneiderman is pushing back against a federal attempt to give banks immunity on such matters:

Mr. Schneiderman and top prosecutors in some other states have objected to the proposed settlement with major banks, saying it would restrict their ability to investigate and prosecute wrongdoing in a variety of areas, including the bundling of loans in mortgage securities.

So, is immunity with respect to mortgage securitization a nonstarter, or is it the whole reason why banks would dream of signing the settlement in the first place? I suspect it might be both. If I was a bank, I wouldnt dream of paying billions of dollars in return for a narrow settlement precluding further prosecution about robo-signing and the like: it just wouldnt make economic sense to do so. At the same time, if I were Schneiderman, in the middle of a detailed investigation into what banks mortgage departments got up to in the run-up to the crisis, I certainly wouldnt want that investigation rendered moot and toothless before it had even been concluded.


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  -Obama Administration Pressuring NY AG To Accept Bank Settlement Instead Of Prosecuting Purveyor  Aug-22-11 11:48 AM   #0 
  - And the BO corporate enablers never fail to come thru for their benefactors  Vincardog   Aug-22-11 11:58 AM   #1 
  - The same reason they had to find some dirt to get rid of E.Sptizer.  OHdem10   Aug-22-11 12:00 PM   #2 
  - The Obama administration wants the mortgage debacle to be handle by the rich buying up the houses.  midnight   Aug-22-11 12:01 PM   #3 
  - Why not? Ebeneezer Scrooge was awesome towards the tenants of all the houses he owned!  MessiahRp   Aug-22-11 12:59 PM   #8 
  - That's yesterdays news -- like torture.  Hell Hath No Fury   Aug-22-11 12:07 PM   #4 
  - the Geneva Conventions and the state's prosecution of deceptive trade practices can be so quaint  Supersedeas   Aug-24-11 09:48 AM   #18 
  - From the NYT  ProSense   Aug-22-11 12:16 PM   #5 
  - I hate this. Do you suppose it's because he's got some "connected"  gateley   Aug-22-11 12:23 PM   #6 
  - They are doing it to gain a $20 billion settlement agreement, to benefit homeowners  bhikkhu   Aug-24-11 10:04 AM   #19 
     - I still think the American public deserves a Mortgage Payment Holiday  Supersedeas   Aug-25-11 07:58 AM   #21 
  - Bank lawyers will contest every single one of the robo-foreclosures in 50 different states  banned from Kos   Aug-22-11 12:48 PM   #7 
  - What a pile of bullshit.  girl gone mad   Aug-22-11 04:14 PM   #15 
     - comeon, hotshot. What are the actual damages on a foreclosed home where  banned from Kos   Aug-22-11 04:35 PM   #17 
  - Why the bank-settlement talks are likely to drag on indefinitely  ProSense   Aug-22-11 01:05 PM   #9 
  - Interesting - - there are two areas of dispute  banned from Kos   Aug-22-11 01:11 PM   #10 
     - spin...nt  xiamiam   Aug-22-11 01:37 PM   #11 
        - not spin - it clearly says Shneidermann is holding out due to securitization  banned from Kos   Aug-22-11 01:53 PM   #14 
  - let's hope this guy doesn't have dirt like Spitzer did.  yurbud   Aug-22-11 01:39 PM   #12 
  - Settling legal cases is usually desirable  treestar   Aug-22-11 01:42 PM   #13 
  - here's a totally unrelated story  Enrique   Aug-22-11 04:26 PM   #16 
  - Unconscionable corruption.  woo me with science   Aug-24-11 11:53 PM   #20 

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