Naked Capitalism | Mortgage Settlement Term Sheet: Bailout as Reward for Institutionalized Fraud

Mortgage Settlement Term Sheet: Bailout as Reward for Institutionalized Fraud

American Banker posted the 27 page term sheet presented by the 50 state attorneys general and Federal banking regulators to banks with major servicing operations.

Whether they recognize it or not, this deal is a suicide pact for the attorneys general in states that are suffering serious economic damage as a result of the foreclosure crisis. Tom Miller, the Iowa attorney who is serving as lead negotiator for this travesty, is in a state whose unemployment was a mere 6.2% last December. In addition he is reportedly jockeying to become the first head of the Consumer Financial Protection Bureau. So the AGs who are in the firing line and have the most reason to want a tough deal or no deal have as their spokesman someone whose interests are not aligned with theirs.

Moreover, Miller’s refusal to discuss even general parameters of a deal goes well beyond what is necessary. He knows that well warranted public demands that a deal be tough will complicate his job, but it also does the AGs whose citizens have been most damaged a huge disservice. Pressure on the banks from the public at large is a negotiating lever they need that Miller has chosen not to use.

The argument defenders of the deal make are twofold: this really is a good deal (hello?) and it’s as far as the Obama Administration is willing to push the banks, so we have to put a lot of lipstick on this pig and resign ourselves to political necessities. And the reason the Obama camp is trying to declare victory and go home is that it is afraid that any serious effort to deal with the mortgage mess will reveal the insolvency of the banks.

You can check out the rest of this in depth analysis here…


11 Responses to “Naked Capitalism | Mortgage Settlement Term Sheet: Bailout as Reward for Institutionalized Fraud”
  1. Anne Tyler says:

    What this thing is, what the truth is – our government does some outrageous things TO US, the little people (the meat and potatoes so to say of the U.S.)

    We in turn complain at which point we get a sort-of acknowledgment that something needs fixing.

    From here on out, think of it as entertainment, not that its fun but that’s the way it works. It’s like “today, people are into space movies or whatever” so hollywood gives them space movies

    Not quite the same as when our government does the same thing, i.e. “let’s see, I think what our public wants to see right now is that we are listening and hear their pain” or whatever other determination they make

    They then put on a dog and pony show hoping to placate the masses, and incredibly it does to a large degree.

    But then there are those of us who see past the “plays the thing” to what this really is.

    We are patronized and solicited the whole time our government has decided, in essence, to rape and pillage our lives and our homes.

    It’s all an act. Sometimes the screen play turns out pretty good and sometimes it’s pretty shabby.

    Either way, we can’t trust our government because they are NOT despite what they say, ON OUR SIDE.

    They wish us to believe that and so they do various things here and there to help give us that illusion but its all smoke and mirrors.

    Pretty depressing scenario because most of us believe this poppy cock and our “leaders” saying it.

    I can just hear “the boys” in the backroom tonight, all smoking fat cigars on their fat bloated derrieres

    “Did they buy it, howz it going”?

    “Lol, hook line and sinker, we got this covered, no problem”

    “Yeah, well they are a bunch of rubes anyway, they should be happy to get what they get and stop bitching”

    “Okay, now, what about us, what’s shaking, what’s our next rip-off plan? Any suggestions or irons in the fire?”

  2. joe parisi says:

    Contest your fc case as usual. We, as citizens of each state, did not sign any agreement. Go forward and contest everything in court as usual. Use the legal system to protect your property and your rights.

  3. Pamela says:

    We all need to pay attention to what Tim just wrote quoting Thomas Jefferson its time to ramp up people if not now then when?Time is of the essence and we need to strike now or it will probably be never.We are entitling and enabling them to continue this abbhorent behavior patternThey are literaly taking the food from our mouthes,the clothes off our backs and the roofs over our heads.The bigger picture is our children our nations greatest asset is being taken down the tubes with us.If this is allowed to happen then you can kiss hope,prosperity and so forth down the drain.We can not allow this to happen either to us or our future generations to come.Please people lets do something and do it now!!!!

  4. l vent says:

    CNBC reporting Geithner is in Europe today meeting with the his Nazi friends to discuss the next stage of their evil plans to take over the world.

  5. l vent says:

    This proves everything we already knew, they do what they want and do not care what we want. They do not listen to us. They must be thrown out on their ears by the people, like in Egypt. Max Keiser today on RT news is telling America and Europe to revolt against this dictatorship we are all living under. He said EVERYONE STOP PAYING THE MORTGAGE. YOU ARE AIDING AND ABETTING THE TERRORISTS ON WALL STREET AND AT GOLDMAN SAKS. If everyone only knew where that money was really going along with all the property tax money maybe people would listen to Max. They are slowly putting a strangle hold on the American people and the is part of the elite acristocrat plan being put forth by the U.N. called Agenda 21. Yahoo search that phrase and tell everyone that you know to do this. They are out to destroy America, better get our guns and bullets ready now. The people are not going to like what they have in store for all of us and then it will be utter chaos. Then the people will really know they have been living under a fascist dictatorship for quite a while here in America. The American people have been believing their lies and living those lies for quite a long time. Who is behind all of the pain and strife in America and around the globe? It may not be who alot of people thought: Send this link to everyone that you can.

  6. Tim Bryant says:

    “And what have we to oppose them? Shall we try argument? Sir, we have been trying that for the last ten years. Have we anything new to offer upon the subject? Nothing. We have held the subject up in every light of which it is capable, but it has all been in vain. Shall we resort to entreaty and humble supplication? What terms shall we find which have not already been exhausted? Let us not, I beseech you, sir, deceive ourselves. ”

    “…There is no longer any room for hope. If we wish to be free, if we mean to preserve inviolate those inestimable privileges for which we have been so long contending, if we mean not basely to abandon the noble struggle in which we have been so long engaged, and which we have pledged ourselves never to abandon until the glorious object of our contest shall be obtained, we must fight! I repeat it, Sir, we must fight! An appeal to arms and to the God of hosts is all that is left us!”

    Patrick Henry, Speech to the 2nd Virginia Convention, March 23, 1775
    (The infamous “Give me liberty, or give me death” speech)

  7. Tim Bryant says:

    “…a mild and safe corrective of abuses which are lopped by the sword of revolution where peaceable remedies are unprovided; absolute acquiescence in the decisions of the majority, the vital principle of republics, from which is no appeal but to force, the vital principle and immediate parent of despotism..” –

    “essential principles of government”, Thomas Jefferson’s Inaugural Address, March 4, 1801

  8. Pamela says:

    Public input is the biggest joke going.What public input?If there was public input it was firnly cast out the door so they could continue to make our decisions for us.Because as we all know the public is incapable of making our own decisions.Bought and paid for and the fun just continues.The picture says more than a thousand words they snowed our parents and grandparents and now they are doing it to us.the question that begs to be answered:Are we going to allow this to continue or will we decide to revolt?People its way past time to pull an Egypt or a Wisconsin.Rise up and take it to the streets,this is the only way we can stop this madness.Our young people need to be shown that they have to stand up for thier rights,we need to be the ones to show them otherwise we will have another Lost generation.

  9. Lit Gant says:

    I understand there were secret meetings with representativies of the banking industry who wrote the majority of this settlement. The final draft was approved by them before it was finalized. Where was the citizen input on this settlement? There was NONE. This is why this is a SHAM of SHAME. They did not want citizen input. They did not want fairness in the rule of law. They did not want to stop the MERS fraud. They did not want to stop the fraud in loan originations, notary fraud, and fraudulent affidavits signed by all these fraudulent vice presidents. This settlement will begin to affect cases all over America. Judges will see this as their mantra. They will use this to gut or defenses of standing and capacity. These AGs should all be taken out and hanged as co-conspirators. Where are the criminal indictments? Where is the fulfillment of putting people in jail? This was all fluff and threat to get the bankers to the table so they could have drinks and arm wrestle. Of course the winner of this AG settlement will be the banks and the fraudesters. The American people have now witnessed the actions or ROBO Attorney Generals. Would we have ever dreamed these jerks and jerketts would have every done this to the America people?

  10. debi J says:

    Why settle fraud? I thought fraud was a felony?! This is sick, embarrassing, revolting despicable and appalling. I want to throw up. It just confirms how crooked, corrupt, dishonest and sissy like our AG’s are. This guy is a pussy. I am going to write to him asap. He need to be thrown out, hung and stripped of his power, perhaps his clothes and home too. He should stand naked in front of all the homeless people he F-ed over and all the people who are facing fraud as we speak. I want to get out of this corrupt sick country. It is so discusting to be an american. This guy is a sissy and needs his family to feel what all of our families are facing. I try not to hate but right now that’s way too much to ask. America— the home of the fucked over. Debi

  11. Katheryn says:

    The picture dipicts people peacefully lined up, I’m not sure that the picture would be quite the same today.

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