lastly we had a more resettlement uh... we had twenty six billion dollars in in
a peer the banks are giving up twenty six billion dollars inordinate and make
sure that they were not prosecuted unclear crimes on issue robo signing
where they were for clothes on people's house without having the proper
documentation we embed the rights on that issue in their worried
about not just civil litigation
but possible criminal penalties
and so they don't have to worry about it anymore
but at last we were telling you that the issue was a little makes because there
was some good news and bad news in settlements the good news was that we
cancel ideal false claims act in california
that uh... mortgage-backed securities investigation in new york continues
you can still do securitization claims and set up there's a lot of evidence
left open to the investigators
so that was good news and we're gonna get some relief to homeowners now that a
lot
but at least there was some amount of money
well uh... now there is a conclusion on whether it was a good deal or a bad deal
overall
that conclusion is reached by some people like
uh... that eve smith uh... who has been writing brilliantly about this on a kid
capitalism
that tell you beat michael helsinki of l_a_ times
and myself
the conclusion is it was a bad deal
pick-ups first of all
you know how much the banks are actually paying
they wrap a twenty six billion
they're only paying five blew it
and by the way of that five billion
only one of the happily and goes directly to the home homeowners three
happily goes to the states
for a regulatory
you know uh... results of the of the fraud it several when they got the
letter
but already a lot of the governor's a republican governors of course
led by scott walker in wisconsin has said down on the take
by portion of the money
and use it to a put-up uh... to patch up the whole anti-deficit
so late arriving claim to be a great
fighter of the deficit uh... even though i just took money that was supposed to
go over the homeowners
and use that for my own political purposes
so don't even celebrate about the fiber but a lot of other twenty one million
where's that coming from
welcome turns out that that is largely coming from
your pension fund
how that happened
well because
the great trip uh... three-card monte trickier
is that the banks don't even all the more reason
the banks of the ones that service the mortgages
meaning there wasn't enough for closing
but they're really representing the investors that they already sold the
mortgages often
who are those investors
well their four oh one k_ as their pension funds and others right
but it's largely the people who are holding parishes across the country
there the cypress about level develop so now
those guys have taken haircut
those guys have to give up an extra twenty one billion dollars
that goes towards paying down the principal et cetera of some of these
mortgages so so the banks
and by the way that the banks ever of the mortgages anyway
the dated never own a deal to for a brief period of time before they sold
off of investors
why do they care why in the canteen to foreclose on the spot
as it turns out
the banks because the way there there is some structure set up
made more money life for closing on homes
then they did
modifying the loans
now the thing is the investors actually get hurt by that
every time you foreclose on a house the investors on average two sixty thousand
dollars on their property
so terrible deal for the best
but the banks have been anywhere they like are you made a mistake
of trusting cost
to service your mortgages and we get paid more to foreclose
so sad day for you the guy in the house said david investor aloe for clothes
now
okay finally we got them to stop doing that
but again the guys who gonna pay the bill the guys holding all those
uh... mortgage-backed securities in your pension fund
so when you look at it that way the basin pay that much at all
and in fact
we want you know one of the questions was why is it applied to so little homes
because
right now there are eleven million homes underwater
and this applies about a million
at most human
because most of the homes
have mortgages back by fannie mae and freddie mac
and they are not part of the state
so
you know who uh... by the way it has to pay the bill for fannie mae and freddie
mac
yes that the u_s_ tax code
because we had to take them over
because of their grossing copper
so in that in
freddie mac and freddie mac it may will not
renew at
your loans they will not re-finance them
they will not reduce bristles of those homes the great majority of them don't
get any benefit
the ones i didn't get the benefit becomes lebed's is not on the backs
and one of the banks iterator they get the state of the most obvious criminal
violations
in this robo citing deal and the whole mauricio
the fraud that happened
regarding the mortgage backed securities is actually much larger
the fraud in the robo side
i've reviewed the giant frog legs sank economy
they just want to hurry up and foreclose on the house's that's only the robo
sightings
but the role of signing was easier to prove
until we just give it away
and now we can process them on that
and a great point made by you smith was
well normally what prosecutors do is they take the easiest thing to prove
and the use of his leverage
to get the banks are whether they're going after taking greed to other
charges
well now they've lost that leverage
so it's going to be even harder to prosecute and a lot of the statute of
limitations on these fraud is already running out
so the worst fraud that happened with mortgage-backed securities
in o six or seven
it's already too late
we could always start looking at mortgages that happen in two thousand
eight after that
scandal sort of wind down
we got screwed in
eighteen different ways
well what do you know
these banks i mean the
they have a spy the balls man
uh... for and number of reasons one because they bought our politicians are
politicians or represent us they represent them
there's a difference
and then number two they've gotten tim diner and then accordingly present on
mama to believe
if the banks go under like if you do anything as the banks they will go up
because their situation is that fragile which by the way someone troop
because tim geithner knows those database of always been bankrupt
if you know if you
actually did mark to market
uh... accounting on the banks and under obliterate right
but they put a band-aid out and pretended they were healthy
and they spend their convince them on the second part
that if they don't want
but the banks go under
that everybody goes on
that hey you know what everybody's in short term lending you can't get that
and she all these other companies
cake it financing from the banks to pay their bills
and of global economy collapses was not a neat little trick
so there is too big to fail because the whole global economy is centered around
them
and hence the rodney linking they're likely to break any law
at the end the a slap on the wrist five billion dollars compare the money they
made
robbing us the sijo