The Housing “Settlement” Stinks Badly

If the Republicans want a bona fide issue  to tar and feather President Obama on, its his kowtowing to the banks exemplified most recently by the Housing Settlement. Once again, “for the sake of the economy”, banks get away with major white collar financial crime. Anything for a settlement. The $25Billion is peanuts in comparison to the the more than $700 billion in underwater mortgage due to the banks malfeasance that generated the Housing Crisis. The $2000 for each wrongful foreclosure and no right to sue on those deals is a pittance. The delays and stricture on prosecuting the banks for deliberate and widespread foreclosure  misdeeds allows huge amounts of wriggle time to get off Scott Free. This settlement stinks big time.

It is the same old litany. Back in 2008 under Bush the banks were not broken up or allowed to fail. And Goldman Sachs was allowed access to the Federal Reserve’s privileged credit window. None of these actions were reversed under President Obama and Treasury Secretary Geithner.  Could not do that the system would fail because the complex financial inter-indebtedness would cause financial markets to freeze. Under Obama, Geithner, and Attorney General Holder there have been no successful or meaningful prosecution of the banks, the rating agencies and other financial institutions complicit in the Housing and Banking Crisis.

Naked Capitalism, a blog site devoted to showing the interconnection between Washington and Wall street has a blistering 12 point summary of the “Settlement” – The Top Twelve Reasons Why You Should Hate the Mortgage Settlement. Here is President Obama standing up for the Banksters:

The Announcement looks upbeat and bland, the details are anything but
This is indelible proof that lobbying and campaign finance power is very real and pernicious. Look at the NYTimes coverage of a parallel situation in Greece – “proposed rescue package calls for debt payments as the first priority, whatever happens to Greece itself.” And the whatever is not pretty see here and here.

Meanwhile President Obama got in 2008 and again in 2012 tens of $millions in campaign funds from the banks and financial institutions. This is perfect material for the Republican attack ads. Will Newt “FannieMaeMan” Gingrich take on the issue? How about Mitt “Bain Capitalalized” Romney? Or Rick “Born Again” Santorum. The only Republican likely to even dare to raise the issue is Ron Paul – and he will be ignored.


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