Top Five Banks Pay $25 Billion for Legal Immunity from Foreclosure Fraud

**archibaldcrane** · 2012-01-23 20:59

Originally Posted by djzombie

record profits is barely recovering eh?

Take a look at the 5/10 year charts for Bank of America.

https://www.google.com/finance?client=ob&q=NYSE:BAC

or Citigroup:

https://www.google.com/finance?q=NYSE%3AC

Wells Fargo and JP Morgan Chase recovered pretty well.

**archibaldcrane** · 2012-01-23 21:07

Goddamnit now I have the song "Wells Fargo Wagon" from the musical "The Music Man" stuck in my head.
http://www.youtube.com/watch?v=7Kfi-DWUYM8

**RKenshin** · 2012-01-23 21:24

Stock performance by itself isn't typically the best way to measure a company's success. Maybe in some cases and as a snapshot, but for the most part it's just too volatile and encompasses far too many other factors.

But even with stock price of $7.25 that is 86% lower than it was 5 years ago, it still puts BoA's current market capitalization at $76 billion. Nothing to scoff at, and they certainly are not worth the half a trillion they 'would/could be' without that stock drop.

And they've still consistently remained profitable through all of these past 5 years, and kept their assets a steady 9-10% above their liabilities.

That said though, I wouldn't say they've 'completely recovered' as there is still a lot of bad debt in their books and profits are at a low. But they're certainly not scraping by.

**archibaldcrane** · 2012-01-23 21:36

Originally Posted by RKenshin

Stock performance by itself isn't typically the best way to measure a company's success.

Agreed, but when a large amount of compensation to executives is in stock options, and the immoral/sometimes illegal actions of said executives crushes the value of their options by 86% (in BOA's case), they are reaping what they sow to an extent.

**Correction** · 2012-01-23 22:19

Originally Posted by archibaldcrane

Agreed, but when a large amount of compensation to executives is in stock options, and the immoral/sometimes illegal actions of said executives crushes the value of their options by 86% (in BOA's case), they are reaping what they sow to an extent.

I doubt the drop in stock value is a way to punish the executives whose pay derives from their value is a way to punish them for being immoral/lawbreakers as much as it is about failing to protect shareholder value by getting caught with their hands in a huge financial mess. No doubt the stock will rebound significantly if this deal passes.

**Tyche** · 2012-01-23 22:25

Foreclosure fraud isnt a slam dunk. They obviously feel that 20 billion bones would do more to help the economy and struggling homeowners keep their homes than a long litigated fraud battle. I'm not sure I disagree.

**Correction** · 2012-01-23 22:35

Originally Posted by Tyche

Foreclosure fraud isnt a slam dunk. They obviously feel that 20 billion bones would do more to help the economy and struggling homeowners keep their homes than a long litigated fraud battle. I'm not sure I disagree.

http://www.google.com/hostednews/ap/...ce92b459bd154c

A draft settlement between the banks and U.S. states has been sent to state officials for review.

Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement, which could be as high as $25 billion. About 750,000 Americans — about half of the households who might be eligible for assistance under the deal — will likely receive checks for about $1,800.

These people were illegally kicked out of their homes and for their troubles they're getting $1800. Tops. Maybe. Fuck this deal.

**Tyche** · 2012-01-23 22:42

Originally Posted by Correction

http://www.google.com/hostednews/ap/...ce92b459bd154c

These people were illegally kicked out of their homes and for their troubles they're getting $1800. Tops. Maybe. Fuck this deal.

As part of the deal, about 1 million homeowners could also get the principal amount of their mortgages written down by an average of $20,000. One in four homeowners with a mortgage — or roughly 11 million people — owe more than their home is worth. These so-called "underwater" borrowers have little chance at refinancing.

That's incredibly significant. I'm the 25%, I would kill for that deal.

Demosthenes11 · 2012-01-23 22:45

$25B? How much money did we bailout those 5 banks with? Isn't this basically us giving them money so they can pay their fine and not go to jail?

**Correction** · 2012-01-23 22:53

Originally Posted by Demosthenes11

$25B? How much money did we bailout those 5 banks with? Isn't this basically us giving them money so they can pay their fine and not go to jail?

Too big to jail.

**Ksandra** · 2012-01-23 23:01

Originally Posted by Demosthenes11

$25B? How much money did we bailout those 5 banks with? Isn't this basically us giving them money so they can pay their fine and not go to jail?

Not to side with any of this, but I thought some had already paid back the loans/have made payments. So wouldn't that be separate?

Or was that just car companies?

**archibaldcrane** · 2012-01-24 02:43

Originally Posted by Correction

http://www.google.com/hostednews/ap/...ce92b459bd154c

These people were illegally kicked out of their homes and for their troubles they're getting $1800. Tops. Maybe. Fuck this deal.

The vast, vast majority of "these people" were not illegally kicked out of their homes.

Sent from my Samsung Galaxy S 4G using Tapatalk

**Correction** · 2012-01-24 03:05

Originally Posted by archibaldcrane

The vast, vast majority of "these people" were not illegally kicked out of their homes.

Sent from my Samsung Galaxy S 4G using Tapatalk

You should actually read the link

— $5 billion would be placed in a reserve account for various state and federal programs; a portion of that money would cover the $1,800 checks sent to those homeowners affected by the deceptive practices.

The $1800 checks would only be given to those victimized by the abuses of the invalid foreclosures.

**Elvis** · 2012-01-24 06:55

"and progressives are furious" LOL

**Kuya** · 2012-01-24 07:24

I don't know what you're laughing at, but i would also laugh at the idea of a mad progressive meaning anything to anyone.

**Elvis** · 2012-01-24 09:56

Originally Posted by Kuya

I don't know what you're laughing at, but i would also laugh at the idea of a mad progressive meaning anything to anyone.

I'm laughing at the tacking-on of the phrase 'progressives are mad at Obama'.

Progressives who voted for Obama were taken for a ride. To imply they're 'mad' at Obama now, in 2012, is a moot point. Not to mention, yes, 'mad progressives' doesn't mean a damn thing. Unless you mean TV liberals like Rachel Maddow, who still doesn't matter.

I thought all of this was obvious considering, well I dunno, the past 4 years?

**Kuya** · 2012-01-24 10:10

Ah. Yes, i think that's funny too. I was going more along the lines of mad progressives being these pouty teenage girls that nobody takes seriously, because they'll usually bend over when you tell them to.

**Correction** · 2012-01-24 13:14

Originally Posted by Kuya

mad progressives being these pouty teenage girls that nobody takes seriously, because they'll usually bend over when you tell them to.

Personal anecdotes!

**Kuya** · 2012-01-24 16:37

It is. I'm going to vote for Obama.

**solanis** · 2012-01-24 18:54

Originally Posted by Cantih

I'll admit, I'd rather have investigations and prosecutions instead of the money, no matter the amount.

this is a really dumb thing to say tbh

Thread: Top Five Banks Pay $25 Billion for Legal Immunity from Foreclosure Fraud

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