News is starting to leak out about the Obama administration pressuring the 50 state AG’s to accept a deal, any deal, with the Banks on their handling of foreclosures over the past 5 to 10 years. As we have blogged about here and here, this is clearly a terrible idea. Mostly because it allows these banks to get away with murder for little more than a slap on the wrist.
The New York Times goes a step further in their editorial yesterday, calling the settlement not only “flawed”, but essentially stating the the Administration has their head in the sand thinking this is going to create any type of real relief for homeowners.
Yves Smith over at nakedcapitalism offers a scathing rebuke to what she is now calling a “corrupt” administration, and their desire to see this swept under the rug, while your Attorney General is left helpless in going up against the likes of Bank of America, Citi, JP Morgan Chase and Wells Fargo and their potential illegal activities for a few million dollars. In stating it perhaps as succinctly and accurately as I have seen it anywhere, Ms. Smith states “Not only have they caused a colossal economic train wreck, but sadly, they remain such central actors that they need to be involved in remediation. Letting them off cheaply would be tantamount to putting a band-aid on gangrene.”
I don’t care what state you are in, you need to contact your AG’s office (you can find yours here), and let them know this is not only a bad idea, but it is not in the best interest of the people they are sworn to protect. By selling out any potential claims a state may have, for much less than 30 pieces of silver I might add, it will greatly hamper efforts to hold these banks responsible for the meltdown we are currently going through. Further, it will potentially prevent homeowners from pursuing their own claims against the banks as the weight of taking on a lawsuit can be so daunting, most homeowners may simply chose to give up and good precedent will not be set.
This is not the answer. There are a few AG’s out there that get it. If your’s is not one, raise hell. This could be the biggest economic issue of a generation and it is no time to simply back into a corner and look the other way.