BANK OF AMERICA AGREES TO NEARLY $17B SETTLEMENT
FAF

BOFA LOGO This is a follow up to the U.S. Dept. of Justice vs, Bank of America  article that was out a couple of weeks ago, (CLICK HERE to read). As anticipated by the financial community this BofA settlement with Justice is ‘Historic’ in its dollar amount. The largest such settlement for wrongdoing of any US Corporation in history.

Countrywide Home Loans, Inc.’s two primary goals were; 1.) Sponsor as many securitized Mortgage Trusts as possible, and sell the ‘certificates’ of the individual Trusts up to 30 times the face value of the Notes pooled into the individual Trusts. And, 2.) Retain the loan servicing rights to the Notes after they were pooled into the securitized Trusts to expand Countrywide’s loan servicing portfolio’s income stream. The vast majority of Mortgage industry professionals working in the origination process had no idea of their roles in the ‘Securitization Food Chain’. The monumental Ponzi scheme that unravel in 2008, that took the economy and financial system down with it, as everyone so painfully remembers.

Angelo Mazilo (Countrywide’s lead executive) featured as one of the “Men That Crashed The World” in the short documentary by the same name. Countrywide was by no means the only player in that scheme, but was at the core of it. Bank of America had to know exactly what they were getting themselves into when they purchased ANGELIO MAZILOCountrywide, hey they were deeply participating in the ‘Securitization Food Chain’ in lock step with Countrywide and all the other players in the scheme.

So, NO TEARS for Bank of America here. As mentioned in the prior Post about this historic settlement in the works; “Just Give The Money To The People”. U.S. Dept. of Justice does not need it. Give the settlement monies to the homeowners. Especially to the Veterans who were foreclosed by ‘ReconTrust’ (Countrywide/BofA’s internal foreclosure subsidiary Trustee service).

Virtually every home loan Countrywide and BofA funded was pooled into a securitized Mortgage Trust up until the certificate selling party ended in 2008. All of the parties involved knew full well that they never followed the New York State Trust and Securities laws when they pooled the Mortgage Notes into the securitized Trusts (New York State was the governing law for the Trust formation for virtually all of Countrywide’s Trust formations). Of course the judiciary also knows that the New York Trust laws were ‘ignored’ in the process of creating and feeding the Securitization Food Chain. But, none of that matters when it comes to the “To Big To Jail” banks and banksters. NO indictments, only ‘settlement after settlement’. JUST GIVE the settlement money to the homeowners and Veterans that lost their homes to this corrupt and heartless system. U.S. Dept. of Justice has no losses, has no reason to keep these settlement funds. They are only getting these funds because they can. Just too bad these settlement funds are not going exclusively to the wrongfully foreclosed homeowners, victimized by this epic Ponzi scheme. But that’s life here in the debtor sector, otherwise known as ‘Jurisdiction B’.

Bankster, Govt, and You at table graphic Here are some quotes from this latest update article by Kevin McCoy and Kevin Johnson;

“Bank of America has agreed to pay nearly $17 billion to settle federal and state allegations it sold risky, mortgage-backed securities to investors before the national financial crisis, a person familiar with the matter said Wednesday.

The settlement, the largest in history between the federal government and a single company, is expected to be unveiled as soon as Thursday, said the person, who spoke on condition of anonymity in advance of the official announcement.

The tentative deal is expected to include billions to the Department of Justice and several states, with billions more going to reduce mortgage payments for struggling homeowners and other consumer relief.”

“Much of the activity covered by the settlement occurred in Countrywide Financial, the mortgage company the bank bought in 2008, and Merrill Lynch, the brokerage the bank also acquired during the financial crisis.”

And here is the ‘kicker’;

“Additionally, the U.S. Public Interest Research Group, a national consumer group, noted Monday that large portions of bank settlements with the government have been tax-deductible.

“To understand how significant the BofA settlement really is, people need to ask how many billions the bank is allowed to write off as tax deductions, and how much of the announced figure includes ‘fake costs’ — costs the bank would have incurred anyway to protect its bottom line,” said Phineas Baxandall, the consumer group’s senior analyst.”

Oh yeah, so let me understand the highlights; BofA gets to ‘write it all off’, (probably a loss carry forward) against their taxable income; pad the write off with “fake costs”; and the Justice Dept. gets to keep nearly half of all the ‘BILLIONS’. And they will announce  a ‘portion’ of the settlement funds to be earmarked for future loan modifications for PR purposes, to make it sound like they’re ‘for the people’, (which of course BofA has to approve each home loan modification on a case to case basis), and those homeowners that have already lost their homes to Recontrust get SQUAT.

I’LL SAY IT ONCE MORE, JUST GIVE THE MONEY DIRECTLY TO THE PEOPLE WHO HAVE SUFFERED!

It’s very difficult not to become a perpetual cynic.

CLICK HERE to read the entire source article.

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