NYT: Banks Close to Buying Off Their Criminality (With Funds They Get For Free from The Fed Anyways)Submitted by LapHog on Sun, 01/06/2013 - 18:56
CNBC, via NYT:
A $10 billion settlement to resolve claims of foreclosure abuses by major lenders is expected to be announced on Monday, several people with knowledge of the discussions said Sunday, after weeks of negotiations between federal regulators and 14 banks.
The kicker? Get this:
Some officials at the Federal Reserve threatened to scuttle it unless the banks agreed to pay an additional $300 million for their role in the 2008 financial crisis that torpedoed the housing market and led to millions of foreclosures.
The Fed officials, the people said, argued for additional aid for homeowners ensnared in a flawed foreclosure process. The $300 million demand was to come on top of the $10 billion payout, but was met with resistance from the banks, especially because it was raised late in the day on Friday, according to the people with knowledge of the matter. Several banking officials balked at the additional demands, according to several current regulators.
Ultimately, the Federal Reserve officials backed down over the weekend, allowing the $10 billion pact to move forward ahead of bank earnings releases this month, according to the people.
In simpler terms, to express the sheer criminality, misdirection, and lunacy of it all...
The Fed alleged these banks were part of the cause of the 08 collapse, ignoring that this would not have been possible without The Fed in the first place. The $10 billion fine amounts to the mob taking money from its left pocket and putting it in its right pocket. Oh, and of course, nobody's guilty of anything.
I'm sure others can describe it in better terms than this. Please do so in the comments below.
Cheers, and here's to injustice for all. Except for banks. Banks get plenty of justice. Totally. I feel bad for them.
Full story here: http://www.cnbc.com/id/100357141