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The sad fact of the matter is the Federal Reserve will protect these banks no matter what, so it doesn't matter. Remember they create money out of thin air at your expense. As long as we are talking about civil fines, where the suit gets settled with no admission of wrong doing, then IMO they consider it a business expense. Only criminal charges for breaking the law will have an effect and so far, Obama's justice dept. has absolutely refused to bring charges against any TBTF executive.
true. But, couple that with the other fines that they are having....it might make a dent
All they do is pass the fines on to the consumer - stick with raising their credit card interest rates and slap on extra fees for so much as looking towards a teller window.
$1 billion? If the feds win, they can use that to run the government for what, 6 hours?
More like 60 minutes, I suspect. And money that is recovered will just go back into department coffers, probably, to cover the cost of all the litigation. I honestly do not know what "slush fund" recovered funds go into - that would be something interesting to find out.
Well, the irony is . . .Fannie Ex-CEO Franklin Raines is the person at the top of the whole damn scam. And he got out with millions in the bank and has never been prosecuted for squat.
Hits me as something really stinky when the guy who was at the top of the mortgage bundling pyramid scheme ran a gubment institution and he has managed to walk away unscathed - and very very rich.
Some of us have a long memory and I can't fathom why the DOJ doesn't.
Doesn't take much imagination to draw some lines as to who is friends with whom, allowing Fannie to be bypassed whilst private banks get the scrutiny.
Mr Leveraged Buyout's "justice" department would do even less against these guys and go further towards deregulation. The funny thing is at this point, all the TBTFs fail to meet anyone's reasonable definition of a "bank". They aren't banks anymore.
These lawsuits (this is only 1 of many) all essentially stem back to Countrywide, which BAC was forced to absorb under the brain trust that decided that Lehman should fail. It's despicable and the wrong people always end up taking the brunt of any action. To borrow a quote from Mr. Taibbi, nothing will change until the right executives are thrown in pound ya in the arse jail. Civil suits penalizing magic pixels of fiat won't stop anything... heck, this news story breaks and the BAC stock barely moves.
Mr Leveraged Buyout's "justice" department would do even less against these guys and go further towards deregulation. The funny thing is at this point, all the TBTFs fail to meet anyone's reasonable definition of a "bank". They aren't banks anymore.
These lawsuits (this is only 1 of many) all essentially stem back to Countrywide, which BAC was forced to absorb under the brain trust that decided that Lehman should fail. It's despicable and the wrong people always end up taking the brunt of any action. To borrow a quote from Mr. Taibbi, nothing will change until the right executives are thrown in pound ya in the arse jail. Civil suits penalizing magic pixels of fiat won't stop anything... heck, this news story breaks and the BAC stock barely moves.
I think then, and only then, will the shenanigans stop.
If we treated white collar crime as we do street crime, white collar crime would drastically decrease.
Completely agree. But, like Rational said, one step at a time.
I know that in my experience, the only way I can control a conversation (I work at a bank and work with financial advisers) many times is to quote the Frank-Dodd act.
LOL. Barney Frank & Chris Dodd. Two individuals who have many many ties to the finance industry. Both are responsible for every piece of legislation that led to TBTF banks in the first place. The act which you quote and holds their name does nothing to change what is wrong with the finance industry. Dodd for his part slipped legislation into TARP that allowed big bankster bonuses to continue to be paid out to executives of failing banks all at taxpayer expense and Frank did nothing to stop it.
LOL. Barney Frank & Chris Dodd. Two individuals who have many many ties to the finance industry. Both are responsible for every piece of legislation that led to TBTF banks in the first place. The act which you quote and holds their name does nothing to change what is wrong with the finance industry. Dodd for his part slipped legislation into TARP that allowed big bankster bonuses to continue to be paid out to executives of failing banks all at taxpayer expense and Frank did nothing to stop it.
All you need to remember about politics, elections, legislation, etc: The banks always win. The end.
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