Share on Google Plus Share on Twitter Share on Facebook 1 Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend (1 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Stats   2 comments

OpEdNews Op Eds

Two New Fraud Deals Show Wall Street's Washington Insiders at Work

By (about the author)     Permalink       (Page 2 of 2 pages)
Related Topic(s): ; ; ; ; ; ; ; , Add Tags Add to My Group(s)

News 2   Must Read 1   Well Said 1  
View Ratings | Rate It

opednews.com

After joining Covington's biggest competitor the SEC's new legal chief moved on to another law firm, still defending banks and bankers from the agency he now represents. He had one last high-profile case before rejoining the government: MF Global. That's the firm that stole its investors' money instead of investing it. He defended one of its executives.

One of this weekend's settlements with Bank of America addressed the fraudulent sale of mortgages to Fannie Mae. (Fannie Mae: That's the government agency that was "privatized," ruined by privatized greed, and then rescued by the taxpayers who now own it.) The agreement was undoubtedly hammered out between Bank of America and Fannie Mae's CEO, who represented the people's interests in this case.

Fannie Mae's CEO hasn't been there long. His last job was as General Counsel for ... Bank of America. In fact, he was BofA's top attorney in 2008, at the height of its foreclosure misdeeds. Now he's settling those misdeeds as part of a wave of deals that will allow the bank's executives to escape criminal prosecution. So he had a seat at both sides of the table.

That happens a lot in these deals. Get used to it.

Bank of America's agreed-upon payment to Fannie Mae sounds big -- $3.6 billion. But that comes to exactly one percent of the outstanding debt on those loans -- debt that's still owed by the occupant of that empty chair. The bank's total settlement costs are roughly 0.75 percent of the total loan value.

BofA also agreed to sell the servicing rights to these mortgages ... undoubtedly to another one of the banks sitting around that frequently-used table. The buyer will need to recoup their investment, of course -- and loan servicers boost their income by overcharging the occupant of that empty chair.

So whose chair is it? You already know. That chair belongs to the borrower whose home value was artificially inflated by a bank-hired appraiser. It belongs to the homeowner who paid her mortgage on time every month, but was still hit with unjustified 'servicing charges' that caused her to fall behind ... and lose her home.

That empty chair belongs to the minority communities targeted for predatory lending, then left to wither and die. It belongs to the bedroom communities whose residents invested their life's savings in real estate whose value had been artificially pumped up by by bank speculation. It belongs to millions of families -- in Hendersonville, in West Garfield Park, in Baltimore and Jacksonville and Bakersfield and thousands of other communities across the country.

That chair belongs to the family who lost $50,000 or $75,000 or $100,000 when they lost their homes, and then got $1,200 back in that "big" $25 billion deal --  and only then if they were "lucky." It belongs to all the Americans who lost trillions of dollars in housing value when the bank-created bubble finally burst, and who were then left holding the debt.

That chair belongs to all the people who can't find work because nobody's hiring. Nobody's hiring because nobody's buying. And nobody's buying because so many people are struggling to pay their overpriced loans.

That chair belongs to you, and it belongs to me. And as long as it's empty these deals will all turn out the same. A small circle of friends will keep cutting the same cushy deals over and over again until we go to Washington and demand a change, this change:

No more deals. No more negotiations. Not until we're in the room. Not until we're  seated in the chair, at the table, in the chambers of justice, that have always rightfully belonged to us -- and only us.

 

Follow Richard (RJ) Eskow on Twitter: www.twitter.com/rjeskow

Next Page  1  |  2

 

http://www.huffingtonpost.com/rj-eskow/the-dumbest-bipartisa

Host of 'The Breakdown,' Writer, and Senior Fellow, Campaign for America's Future

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

Go To Commenting
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

How to Fix the Fed: Dismiss Dimon, Boot the Bankers, and Can the Corporations

The Top 12 Political Fallacies of 2012

Pawn: The Real George Zimmerman Story

What America Would Look Like If Libertarians Got Their Way

"F" The Bureaucracy! The White House Can Help Homeowners Right Now

The Price of Evil at JPMorgan Chase

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
2 people are discussing this page, with 2 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

...then they can't apply to anyone.... by Ginger McClemons on Wednesday, Jan 9, 2013 at 2:38:30 PM
Been in and out of eminent foreclose for 44 months... by James Tennier on Monday, Feb 25, 2013 at 5:03:45 PM