Monday, December 31, 2012

Divide 10 by 14


And it will give you some idea of how cheaply the perpetrators of the greatest fraud this country has ever seen are getting off the hook.
Banking regulators are close to a $10 billion settlement with 14 banks that would end the government’s efforts to hold lenders responsible for foreclosure abuses like faulty paperwork and excessive fees that may have led to evictions, according to people with knowledge of the discussions.

Under the settlement, a significant amount of the money, $3.75 billion, would go to people who have already lost their homes, making it potentially more generous to former homeowners than a broad-reaching pact in February between state attorneys general and five large banks. That set aside $1.5 billion in cash relief for Americans...

Housing advocates were largely unaware of the latest rounds of secret talks, which have been occurring for roughly a month. But some have criticized the government for not dealing more harshly with bankers in light of their lax standards for making loans and packaging them as investments, as well as their problems with modifying troubled loans and processing foreclosures.
The best part of this settlement scam is the independent reviews required by "experts" at $250 hr, with the average review taking 20 hrs. There are probably thousands of unemployed bankers who remember the old standards and could do the job in half the time at a tenth of the cost. And still no one is going to jail, even though every cut corner and flawed piece of paperwork was authorized at the highest levels.

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