Matt Taibbi: While Wronged Homeowners Got $300 Apiece in Foreclosure Settlement, Consultants Who Helped Protect Banks Got $2 Billion


While Wronged Homeowners Got $300 Apiece in Foreclosure Settlement, Consultants Who Helped Protect Banks Got $2 Billion

The obscene greed-and-arrogance stories emanating from Wall Street are piling up so fast, it’s getting hard to keep up. This one is from last week, but I missed it – it’s about the foreclosure/robo-signing settlement that was concluded earlier this year.

The upshot of this story is that in advance of that notorious settlement, the government ordered banks to hire “independent” consultants to examine their loan files to see just exactly how corrupt they were.

Now it comes out that not only were these consultants not so independent, not only did they very likely skew the numbers seriously in favor of the banks, and not only were these few consultants paid over $2 billion (over 20 percent of the entire settlement amount) while the average homeowner only received $300 in the deal – in addition to all of that, it appears that federal regulators will not turn over the evidence of impropriety they discovered during these reviews to homeowners who may want to sue the banks.

In other words, the government not only ordered the banks to hire consultants who may have gamed the foreclosure settlement in favor of the banks, but the regulators themselves are hiding the information from the public in order to shield the banks from further lawsuits.

4 Responses to “Matt Taibbi: While Wronged Homeowners Got $300 Apiece in Foreclosure Settlement, Consultants Who Helped Protect Banks Got $2 Billion”
  1. thegrey55 says:

    I predicted the abuse and failure of the IFR at the very start of the process and even discussed its shortcomings with the then Asst. Director of Enforcement, Monica Freas.

    The only surprise, for me, that has come out of all of this BS is the fact that anyone got anything. Albeit, to little to late.

    I have prepared an invoice for payment directed at the OCC and the FED based entirely upon the Payment Matrix released by those agencies. The proof of the fact that where I personally fell within that Matrix is contained in the documents submitted to the IFR before last Decembers deadline.

    The fact that someone has decided to compensate me for just one of the many violations I qualified under is not my problem but theirs and I will be expecting payment in full within 30 days of billing. After which time I will proceed with collection of an overdue debt against those Regulatory Agencies of the Federal Government.

    The way I see it, the decision to include me in the mailing of the original offer to participate in the IFR and the subsequent inclusion in the payout for harms commited is a contract with those offices and a legal obligation on the part of the OCC and the FED to see that everyone involved recieves compensation for every illegal act shown, not just the smallest catagory of harm but every catagory of harm presented by the facts.

    I don’t expect to be successful but at least I can give them a little taste of what it feels like to have your credit screwed with, with one exception, I at least have a right to the money I’m trying to collect versus the TBTF Banksters who had no right at all.

  2. We’re not seeing outrage because the banks have hired enough PR people to skew the public’s impression of the foreclosure victims as being a bunch of lazy, deadbeats who didn’t pay their bills or bought homes they could not afford.

  3. hammertime says:

    How is this not front page HEADLINES and where’s the outrage as we see with the deficit “crisis”. We need to follow the money and they need to GIVE IT BACK!

  4. All I can say is “surprise, surprise, surprise” in my best Gomer Pyle voice.

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