Govt. Extorts $26 Billion From Banks

Katy Grimes: California’s Attorney General, together with the attorneys general from 42 states, have pulled off a $26 billion shakedown of private mortgage lenders across the country, in what many are saying is a move to help balance state government.

Worthy of a Jesse Jackson Rainbow PUSH Coalition shakedown, California stands to receive an $18 billion share of the total shakedown, “which could reach $45 billion, depending on negotiations with other banks.” No one is yet sure how the $26 billion “settlement” could morph into $45 million.

There were  reports that the Obama administration was actually fighting for $300 billion from banks, but settled on the $26 billion.

But what has been glossed over in much of the media is that most of the mortgage loans were given to  people who should not have received the  mortgage loans in the first place.  These same people found themselves substantially underwater as soon as the real estate market tanked.

This is nothing more than a dose of social justice during an election year. The assumption by the left is that if  people are underwater in their mortgages, they must be victims of predatory lending.

But what about the people who lied about their incomes and assets? During the real estate boom, I had employees ask me to lie on bank income verifications so they could purchase homes. And, there were the shady lenders who never waited for a response for income and employment verifications before approving the employee’s loan.

There was greed on both sides. There is no doubt that banks were out of control, but where were the government regulators? Also out of control were the greedy “victims” who deserved to own a home, and would lie

This shakedown will solve nothing. We’ll see if it goes to “victims” or to state’s general funds.

FEB. 10, 2012

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  1. David H
    David H 10 February, 2012, 08:44

    It’s not just the greedy no-doc loaners, it is the very well to-do folks also. I personally know of two individuals who own millions in assets and cash, who still live in huge mansions, but who let mortgages go on speculation homes because the value is now 1/2 of what they paid for it. Everyone is letting the bank eat it. Problem is that the fed will just print more money to cover the losses and inflation will take it out of tax payers wallets in the long run. Redistribution of wealth.

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  2. Beelzebub
    Beelzebub 10 February, 2012, 10:15

    The theft of $trillions$ perpetrated by Wall Steet financial fraud bought for a mere $26B. The corrupted AG’s bent over and gave the banksters what they wanted – a release from further liability and a guarantee that they would not be prosecuted for the robosignings or for the securitization of toxic investments sold to unsuspecting investors. Due to horrendous levels of ignorance in the American public on these matters financial – the AG’s are portrayed as heroes while the banksters are seen as the victims! 😀 If course nothing is further from the truth. It’s more Kabuki theater for the masses. In fact, there is no doubt in my mind that the banksters themselves wrote this law, just like they wrote TARP and all the other legislation that they have benefited from. So somebody who was illegally foreclosed upon gets a max $2000? 😀 That wouldn’t even cover their moving expenses. It does nothing to right the wrong! One of every five homeowners with a mortgage in is underwater in America. 11m in all. Over $700B in negative equity. A $26B fine does nothing to remedy the damage. The damage done by the securitization of toxic investments is in the $multi-trillions$. So don’t take the headfake again, folks. The banksters won again. Afterall – they own your government lock, stock and barrel. They don’t serve you. You serve them. And your children are their future debt slaves.

    Oh, and mark my words, MF Global – which stole over a $billion$ dollars from customers who had their money in so-called segregated and ‘safe’ accounts won’t get punished either. Their former CEO (Jon Corzine) – a former Goldman Sachs CEO – is still walking around free. No punishment whatsoever!!! I suppose Ms. Grimes is going to call him a victim too!!! 😀

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