Political Push Moves a Deal on Mortgages Inches Closer

[zipplewrath]

1. Let's hope

Both federal and state officials emphasized that the liability for past practices remained at the heart of the delay, rather than the size of the monetary penalties and other payments. In addition, they noted that no release from criminal violations was being discussed, only civil actions.

I suspect we should be asking for more cash, but it is more important for the criminal violations to still be open to prosecution.

The proposed settlement is “not going to be enough,” said Kathleen C. Engel, a law professor and a co-author of “The Subprime Virus.” She added that the deal was at least as good for the banks as for homeowners, if not better. “They could be hit with 50 different lawsuits from each of the states, for a lot more money,” she said.

At the end of the day, I don't suspect there will ever be the policital will to go after all the money the banks owe.