Officials are divided over a $20bn “mega settlement” of the US foreclosure crisis, with some fighting a plan to force banks to cut outstanding debt on struggling homeowners’ mortgages, according to people involved with the inter-agency talks.
How about you apply that $20bn to the national debt? Congress can only find like $10 billion in cuts, $20bn would make a difference...
Instead of the fine being paid into federal and state coffers officials are working on a plan that would use the pot of money to cover writedowns of mortgage principal.
The Holder DOJ would be in charge? Likely writedowns would be based on race and ethnic origin? It's not that they're against a certain group, Holder's DOJ is just 'for' all these other groups...
Would Holder's DOJ be likely to provide transparent writedowns? Without regard to race and ethnic origin? Political contributions? Perhaps they'd funnel the money through community organizations?
Why not let states manage the money? Is the average American likely to getter a deal that is fairer from their individual state or from Holder's DOJ? I'd vote for the state.
Some regulators have argued that only those directly harmed by wrongful foreclosures should receive restitution. One official also expressed disquiet about the size of fines being discussed, arguing it would reduce lending capacity and could be struck down in court.
“We only have the authority to change bank behaviour, assess civil monetary penalties and make whole those who have been harmed, not to invent social programmes,” said a person familiar with the thinking of the hold-out regulators.
How about "This is the Obama administration, we promote special interests, reward our friends, and punish our enemies."
read more here -
http://www.ft.com/cms/s/0/f4e6caa8-48ea-11e0-af8c-00144feab49a.html?ftcamp=rss#axzz1FyjEiQIgjust my humble opinions
