$40 Billion Bank Settlement Was Actually Another Obama Redistribution Scheme

The $40 billion bank settlement concerning home foreclosures has fine print that is just now being made public. This settlement will be repaid to the banks by the government so the American taxpayer is once again bailing out home mortgages that should originally never have been made:

However, a clause in the provisional agreement – which has not been made public – allows the banks to count future loan modifications made under a 2009 foreclosure-prevention initiative towards their restructuring obligations for the new settlement, according to people familiar with the matter. The existing $30bn initiative, the Home Affordable Modification Programme (Hamp), provides taxpayer funds as an incentive to banks, third party investors and troubled borrowers to arrange loan modifications.

To make this simple.

  1. The government blackmails banks to give home mortgages to people who are not qualified for the loan under the Community Reinvestment Act.
  2. All attempts to stop these programs in Congress are stopped by the cry of “racism”.
  3. The banks bundle the worthless mortgages and sell them around the world as derivatives.
  4. The Ponzi scheme collapses causing a worldwide economic collapse.
  5. The people who were given their homes stop paying their mortgages because banks were stopped from foreclosing by the government.
  6. The banks had to pay additional blackmail to the government to settle the lawsuit and start foreclosing on properties.
  7. The banks and government made a secret deal to transfer the blackmail payoff back to the taxpayer.
  8. The bad mortgages are renegotiated with more favorable terms and principal reductions.

So once again, We the People who are supporting the country, have our wealth redistributed by the government. Remember the phrase:

The Beatings Will Continue Until Morale Improves

Our government has a new version:

The Redistribution Will Continue Until Morale Is Dead

Once again our choice is clear because the government will not stop until the Republic is dead.

David DeGerolamo

 

US taxpayers to subsidise $40bn housing settlement

US taxpayers are expected to subsidise the $40bn settlement owed by five leading banks over allegations that they systematically abused borrowers in pursuit of improper home seizures, the Financial Times has learnt.

The deal, agreed last week, calls for Bank of AmericaJPMorgan ChaseWells FargoCitigroup and Ally Financial to pay about $5bn in cash fines and to reduce monthly payments and loan balances for distressed US borrowers by as much as about $35bn.

However, a clause in the provisional agreement – which has not been made public – allows the banks to count future loan modifications made under a 2009 foreclosure-prevention initiative towards their restructuring obligations for the new settlement, according to people familiar with the matter. The existing $30bn initiative, the Home Affordable Modification Programme (Hamp), provides taxpayer funds as an incentive to banks, third party investors and troubled borrowers to arrange loan modifications.

Neil Barofsky, a Democrat and the former special inspector-general of the troubled asset relief programme, described this clause as “scandalous”.

“It turns the notion that this is about justice and accountability on its head,” Mr Barofsky said.

Federal officials involved in negotiating the settlement defended the arrangement, pointing out that the amount reimbursed to the banks could not be directly used towards fulfilling settlement obligations.

Andrea Risotto, Treasury department spokeswoman, said this system “leverages a way to help more people”.

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