Perhaps the biggest winners in the largely tax-deductible $16.5 billion U.S. Department of Justice’s recent settlement against Bank of America were B of A itself, public employee pension funds, state bureaucrats and political hacks. Attorney General Kamala Harris declared the settlement “brings help to hard-pressed homeowners and communities in California.” Analysis suggests that the biggest losers are the upside down homeowners still at the mercy of B of A.
“Californians losing their homes and life savings receive a pittance of their losses and Harris declares a victory against corporate greed. Bailed-out and too-big-to-fail banks are now receiving tax deductions for doing little for homeowners. $4 billion to B of A. It is corporate welfare at its worst.” says Ron Gold, former Deputy Attorney General facing Harris in November.
Meanwhile Harris’s friends, public employee union members, get their pensions “made whole.” The State’s CalPERS and CalSTRS public pension funds get a $300 million bailout, making these pension funds whole–despite the pension funds’ own irresponsible investments. Previously Citibank and JP Morgan Chase gave $299 million and $300 million to CalPERS and CalSTRS. “We have a $1 billion and counting bailout of public pension funds bankrupting California cities, counties and school districts.
Some unknown portion of $500 million from of B of A will go for direct “consumer relief” such as loan modifications, the rest to low income housing programs run by state bureaucrats and community organizers, “political hacks,” says Gold. Little will reach actual consumers.
(For the rest of the article, click the link.)
This is a case of armed robbery by the government that caused the problem in the first place.
Not a snow balls chance in heck, will end up divided amonst the politicians that caused all the trouble in the first place and collapsed the housing market with stupid politices. Clinton might even get a cut which he'll donate to [his] foundation and not pay taxes on it either…….. LOL
"We are from the government. We're here to help." NEVER has government helped a situation. They have only cost us HUGE amounts of time and money. Is there anyone here who believes that the housing bubble was not caused by foolishly lax banking policies promoted primarily through Fannie Mae and Freddie Mac? Government should NEVER be involved in ANY business.
I’ve had several class action lawsuits that were done by some suing party and I usually ended up with only pennies in the form of a check. One was .50 cents. Never bothered to cash it. I had a feeling ravenous wolves ate most of it up and left me with the carcass.
On the bright side, California has a very attractive attorney general. Even Obama said so!
No, it was because Barney Frank and his buddy Dodd used the Community Reinvestment Act passed and signed by Carter to strong arm banks into giving loans to those they knew couldn't pay them back. The banks did what you and I would have done and packaged them up and sold them to suckers like pension funds and others who then cried to politicians when these packages went belly up.
If you want to blame someone blame those who made the mess, Barney and his buddy. And guess who was put in charge of cleaning the mess up? You bet, Barney and his buddy. They are the ones who blamed the banks and who wrote the new unreadable banking regulations so that new businesses cannot get loans to start up thereby causing even more unemployment.
When you vote, vote for the 'other guy'. Get rid of incumbent politicians.
Unfortunately, he's right. Part of the agreement is for the States to dole out the proceeds. When it comes to any form of govt, you know where the money will go, everywhere but where it is supposed to go.
Too big to fail corps have no control over that.
she's about as attractive as the Wicked Witch of the West, and less than half as much fun to be around. Sh'e got some serious problems……
Typical democrat. Harris' words are lies. And she knows that the money will not go to the victims.
Now just WHY did all of these banks give money to government retirement funds who, from what I understand, had NOTHING to do with the banking misconduct?
This is CRONY MISGOVERNMENT.
Why do you think we end up with the same senators and congressmen year after year. How would you like to be on a payroll that you set yourself. You can make yourself exempt from inside trading laws and you don't have to be in Obama care that you passed for everyone else, you can send things out to your people you are suppose to represent in the senate but they can't answer back. They can get a copy of your news letter saying they arranged a tour of their office for someone or gave a speech at some gathering. They don't say that they stood on the desk and demanded the deficit be reduced instead of increased. They only want to call attention to themselves on their own terms. If we had an honest politician everyone would know the politician's name and they would be dead.