While Banks Set Records for Church Foreclosure, People are Beginning to See the Insufficiency

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http://wepartypatriots.com/wp/2012/03/13/big-bank-bs/

While Banks Set Records for Church Foreclosure, People are Beginning to See the Insufficiency of the Recent Mortgage Settlement



There is growing consensus among onlookers that the recent Federal/State Attorney General mortgage settlement does not sufficiently punish Big Banks that caused and profited from the mortgage crisis. It does little to change an environment in which unchecked bank greed can trigger a national crisis. Complicated language and daunting numbers, make the situation one in which the casual observer may understand the general unfairness of the situation but remain unable to decipher the jargon at the root of the settlement.

Overall, Americans feel that this solution, which led many to lose their homes due to bank negligence/irresponsibility, is merely a slap on the wrist. Perhaps, Naked Capitalism writer Yves Smith said it best:

A settlement involves a release of liability, and in anything other than the through-the-looking-glass world of rule by banks, the party that did the bad stuff is the one that pays for the settlement. This deal is like stealing your neighbor’s gold watch and using it to resolve charges of embezzlement.

HUD Secretary Donovan has claimed he has investor approval to make many mortgage modifications pertaining to the settlement, which is a legal gray area, being that he only has partial authority. The settlement, from an outsider’s perspective, seems to allow a small group of people to work out the details of a settlement that they are partially responsible for. The legal process seems to be forgotten, however, in the interest of a public victory claim by Attorneys General in an election year.