It’s in the news that Bank of America is on the verge of finalizing a settlement with the U.S. Justice Department, which some are projecting could be as high as $17 Billion Dollars for knowingly selling “Faulty Mortgage Securities”. Or in other words, knowingly selling bogus pools of mortgage notes to investors/entities backed by U.S. taxpayers, (not to mention private investors such as pension funds, and mutual funds). You know if you’ve been following this story like we have over the past several years, it is stunning how many times Bank of America’s name has come up about their transgressions with this subject. And yet they just keep rolling on.
This on the heels of the Chase settlement of $13 Billion, and the Citibank settlement of $7 Billion. All on top of the $25 Billion previously brokered by the Justice Dept. a couple of year ago. Which resulted in giving those involved in the mess immunity from criminal prosecution. Ask yourself WHY these above the law financial giants are agreeing to these settlements? The answer is simple, they know they’re guilty of wholesale fraud, the government knows it, and in truth the whole world knows it. If they weren’t guilty, do you think they would be agreeing to these settlements?
Truth is the banks and securities dealers used the signatures of millions of Americans to create new currency in the form of Promissory Notes. Currency that was pooled into “Trusts”, and certificates in these Trusts were sold for CA$H. The banks that sponsored the Trust formations and their other entities involved got the CA$H . It was a monster Ponzi scheme (some have described it as the biggest bank heist in the history of humanity. So now the U.S. Justice Department is “making them pay” for their wrongdoing. But keeping over 50% of the settlement money is just not right period. Some homeowners might get some sort of a payment reduction (PR for the Justice Dept.), which will help them stay in their homes. That’s the only good news about this story.
Why not give ALL of the settlement money to the homeowners? And, what about the homeowners who have already lost their homes, what will they get out of this? I say JUST GIVE THE MONEY TO THE PEOPLE who have suffered. The Justice Dept does not need it. When they need money, they just ask the Fed to keep the printing presses rolling (of course so does BofA). Give it all to those whose signatures allowed the currency to be created in the first place, and especially to those that have lost their homes, and are in the process of losing their homes. I keep saying that if the banks and securities dealers sold the notes pooled into the Trusts up to 30 TIMES, why is it that they cannot help distressed homeowners with re-working their loans to stay in their homes? That’s not capitalism, that level of greed is what brings down nations. It’s not the path we should be on, (just sayin ………….).
CLICK HERE to read the underlying source article by Danielle Douglas