If you didn’t see the 60 Minutes segment last night on how bankers have screwed up mortgage paperwork and how the bastards tried to remedy their screw-ups, then you should.
Because the greedy bastards (yes, I know, I repeat myself) were in such a hurry to sell their manifestly bad loans for profit (by the way, where are those who blamed the financial crisis on the poor and those who were trying to help them?), in many cases banks that now want to foreclose—mostly on victims of Republican economic and regulatory policies—can’t prove who owns the houses. So, some of the bastards resorted to forging documents.
As Les Leopold at AlterNet put it:
The big banks, now accused of fraudulent foreclosure procedures, are the same ones who puffed up the housing bubble, polluted the financial system with toxic assets, and nearly sent us back to the Great Depression. These banks helped put in motion the entire cavalcade of disastrous processes that crashed the value of homes all over the country. At this point it should be clear that too-big-to-fail banks are at the core of the problem and they owe us big-time.
Leopold also reports that Elizabeth Warren, doing God’s work, briefed the states’ Attorneys General by saying , according to Leopold,
that the five big banks (JP Morgan Chase, CitiGroup, Bank of America, Wells Fargo and Ally Financial) saved about $20 billion over the last three years by not hiring enough staff to properly process the tens of thousands of loan modifications and foreclosures
Greed upon greed.
From the AlterNet article, Warren and the AG’s are, presumably in lieu of jail time, demanding from the banksters:
• $30 billion in reparations.
• The creation of thousands of jobs to properly process foreclosures and loan modifications.
• Reform of the foreclosure process so that it rewards bank personnel for processing loan modifications as opposed to foreclosures; make sure home titles don’t “vanish into the black hole of securitization,” and ensure that distressed homeowners aren’t saddled with unjustified penalties.
• Making additional loan modifications “that might cost these five banks up to $135 billion.”
As Leopold points out, the AGs “have enough evidence of criminal activity to force a settlement and the banks will pay.” “The only questions,” he writes, “are how much and how tough the reforms will be.”
Sadly, the Obama Treasury Department—the running of which conclusively proves Obama is no wild-eyed liberal—is trying to limit the damage by arguing for a smaller penalty and “less interference” in the banking business.
And, of course, Congressional Republicans will attack Elizabeth Warren fiercely as she attempts to advocate on behalf of consumers.
Again, I recommend a view of the first segment of the 60 Minutes broadcast and you will understand why I used the word “bastard” four times now.