(KPLR) – In Monday’s Jacology, Charles Jaco says a new deal between the government and big banks puts a new twist on the term, bank robbery.
Bank robbery has reached new levels. And i mean banks robbing you, not the other way around. The federal government today cut a big deal with the biggest banks. And that means two things. One, no one from the banking industry is going to jail for mortgage fraud. And two, people who lost their homes due to fraud or robo-signing of documents will not be getting their homes back.
The feds have reached a deal with ten top lenders, including JP Morgan Chase and Citibank, worth eight and a half billion dollars. Eligible homeowners might get as much as $125,000 apiece. But people who lost their home already because either the banks were unreasonable or were outright fraudulent? Those evicted homeowners don't get their homes back.
Separately, the feds have reached a deal worth an additional $11 billion dollars with Bank of America. But that money goes to the federal mortgage agency Fannie Mae, which claims it was defrauded by shaky mortgages sold by Bank of America. But while Fannie Mae is being reimbursed by Bank of America for the damage it did, actual homeowners won’t get much of anything.
So we have two settlements, worth around $19 billion, with the banking industry. And in exchange for paying out this cash, no one from the banking giants will be charged with any federal crimes for artificially inflating the value of bad mortgages. So the men and women who helped bring the economy to its knees, will stay out of jail.
The biggest losers here are the people who lost their homes, even if they lost their homes to fraud and mistakes by the banks. They might get a few grand each. They won't get their homes back. They won't get their credit ratings back. They won't get their membership in the middle class back.
I'm Charles Jaco and that's Jacology.