It’s only money
Remember when we had a mortgage/housing collapse not too long ago?
Remember that we bailed out the big banks to get them out of the mess that they actively helped create?
Three important catalysts of the subprime crisis were the influx of money from the private sector, the banks entering into the mortgage bond market and the predatory lending practices of the mortgage lenders, specifically the adjustable-rate mortgage, 2–28 loan, that mortgage lenders sold directly or indirectly via mortgage brokers.
Remember in the aftermath of this massive financial disaster that the government demanded loan modifications for those people whose mortgages were under water, but still within reach of modification?
Remember all those families that lost their houses due to bad loans based on bad banking? Foreclosures skyrocketed in nearly every single area of the country. They’re still going on, but at a slower pace now.
Ah, the bliss of a short-term memory.
With this news (not even officially announced yet), the banks are going to pay 10 billion dollars in a settlement to end the whole shebang and admit no guilt:
An estimated $3.75 billion of the $10 billion is to be distributed in cash relief to Americans who went through foreclosure in 2009 and 2010, these people said. An additional $6 billion is to be directed toward homeowners in danger of losing their homes after falling behind on their monthly payments.
It is still unclear how the monetary relief will be distributed among homeowners, but one immediate result of the settlement is the end of a troubled review of millions of loan files.
There’s an apt and insulting irony to all of this, though-in case you’re not paying attention:
We, the taxpayers, paid the banks to get their behinds out of the fire and back into business without going bankrupt:
Was the taxpayer really out $700 billion?
No, since Congress only authorized $350 billion to be lent out in 2008.
The other $350 billion was saved for the new President when he took office in 2009.
Obama never used the TARP funds to further bail out banks. Instead, he launched the $787 billion Economic Stimulus package. Second, the government bought bank stocks when the prices were depressed and sold later, when prices were higher.
By 2012, banks had repaid $292 billion of TARP funds, leaving only $120 billion still outstanding. These funds were used for the HARP program, to help homeowners facing foreclosure.
Third, the bill required the President to develop a plan to recoup losses from the financial industry if needed.
This is our money they’re paying us back with.
They’re admitting no guilt, and there will be no prosecution of fraud or criminal activities as far as has been discussed-although it should!
It’s often been said that money talks. Lots of money makes problems go away..and the banks just proved how gullible we are for falling for their excuse of “We didn’t know what we were doing. Here’s a little bit of what we took from you in compensation.”
That’s all. No apologies for their behavior that cost so many people their homes, no mea culpas from them, indeed..some of the banks even started to balk at the end of the game.
Truly ungrateful wretches we are! Demanding justice!
10 billion dollars buys off the government. Not cheap, but who said the government was cheap?
As for the about the rest of us:
“Thanks for the money! We really enjoyed using it to finance our bonuses and lavish lifestyles!”