President Obama announced a historic settlement today. A $25 billion settlement was reached with Bank (not for) America, Citigroup, JP Morgan Chase, Wells Fargo and Ally Financial over their blatantly fraudulent, selfish, heartless, economy and middle class destroying activities in the housing market. But is it enough? Hard to know when the actual size of the fraud is yet to be determined. Investigations are still ongoing.
The settlement promises those who have already lost their home up to $2,000 in compensation (2 little too late), principle reduction for those still in their home and are underwater (to market value?), as well as new regulatory guidelines for the mortgage servicing industry (depends entirely upon enforcement). Up to 40 states have signed on to the agreement (New York and California included) which brings into question the adequacy of the amount of the settlement. Historic settlement? Historic fraud (bank perpetrated). Did the Pres. let them off the hook? When we finally find out how much carnage the banks actually caused, will they be laughing all the way to themselves?
- L. Morales