February 27, 2011

Too High for Fairness, Too Low to Matter

Here’s another example of your tax dollars at play.

Rep. Waters: $20 Billion Settlement Would Be Too Low

By Nick Timiraos, The Wall St Journal, February 25, 2011, 10:56 AM ET

A top Democrat on the House Financial Services Committee signaled that the broad outlines of a settlement to resolve mortgage-servicer abuses should push for penalties higher than the reported $20 billion figure.

On Thursday, the Journal reported that the Obama administration, federal regulators, and state attorneys general were ironing out broad outlines of a settlement to resolve abuses that first surfaced when foreclosure processes broke down last fall. The settlement could push for banks to write down loan balances for troubled borrowers, and several stakeholders in the talks have pushed for a settlement of more than $20 billion.

Here’s the quote that caught my eye in this piece on spanking bankers for taking away peoples’ homes by forging documents:

The banking industry has knocked the Obama administration’s nascent proposal, saying that the settlement is too large relative to the size of their abuses and that it is also too small to have any meaningful impact on the housing market.

So what would have meaningful impact on the housing market?  I’m sure you all have some excellent ideas what would work.  Shakespeare said in Henry VI, “The first thing we do, let’s kill all the lawyers.”  So what should we do to the bankers?

Comments (6) -- Posted by: madhaus @ 5:15 am