Rich Eskow with details of the administration’s proposed bank settlement:
The Obama White House continues to push for a settlement that would let bankers avoid being punished – or even investigated – for a wave of mortgage-related crimes that includes perjury, tax evasion, and several types of fraud.
Despite the President’s new-found populism – rhetorically, anyway – officials in his Administration continue to push an unfair deal designed to conceal the financial Crime of the Century.
The Financial Times reported on new details of the proposed settlement, whose stated purpose is to punish banks and reduce the amount of money owed by underwater homeowners. But it’s increasingly clear that the deal wouldn’t help homeowners very much and wouldn’t punish bankers at all.
Banks could lower those loan balances by reducing the amount owed on mortgages owned by investors and not by the bank itself. That’s what Bank of America is accused of doing as part of an $8 billion settlement it reached in 2008. This deal would set the stage for a repeat performance.
This proposed deal is still unfair, unjust, and very unbalanced. And it has the Administration’s fingerprints all over it.