Life under gangster government: Obama’s $20 billion bank heist

Posted by: Phineas on May 19, 2011 at 4:01 pm

**Posted by Phineas

And a bunch of states’ attorney generals looking to pander for votes are in on the job. Karl Rove blows the whistle:

At last Wednesday’s “CBS Town Hall,” President Obama said he was “trying to . . . figure out how we can get the banks to do more” on modifying mortgage loan payments. Perhaps, he said, people whose mortgages are underwater should get a “principal reduction, which will be good for the person who owns . . . the home.”

Mr. Obama has decided that taxpayers have no appetite for bailing out homeowners who don’t make their payments, or for rescuing those whose homes are worth less than their mortgages. Instead, he’s backing a proposal by his Department of Justice and state attorneys general to force major banks to cough up the dough.

The money would come from a settlement with JP Morgan Chase, Citibank, Bank of America, Wells Fargo and other banks accused of “robo-signing,” in which foreclosure documents were signed by bank employees or agents without properly certifying all the papers. The attorneys general admit that virtually no one was erroneously foreclosed upon because of robo-signing. The banks foreclosed on people who were on average 18 months delinquent, and after multiple attempts to modify the loan had been tried and failed.

But Justice and the state attorneys general are demanding $20 billion for sloppiness, which they will then be able to hand out to voters—and potential supporters. The money won’t come from the banks; it will come from their customers, millions of whom will pay more in fees and interest and will, in some cases, be denied credit.

This stinks. It’s not only corrupt, it’s bad policy.

As Rove points out, only a few people were hurt in the robo-signing “scandal,” and the proper solution would have been to make them whole with some additional compensation, including returning them to their homes. Instead, Ali Obama and his 40 Thieves President Obama and the state AGs are abusing the law to extort billions from the banks –at the customers’ ultimate cost– that can then be used to plug state budget gaps or as bait for votes. Far from doing justice, the robo-signing problem has been an excuse to do a great injustice, both to the banks and to the original victims, whose cause has been forgotten.

Michael Barone called this “gangster government” and “thugocracy;” we know it as “The Chicago Way.”

It sure isn’t the Rule of Law.

(Crossposted at Public Secrets)

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6 Responses to “Life under gangster government: Obama’s $20 billion bank heist”


  1. pagar says:

    Every American was robbed by the robo-signers. Have you ever asked yourself what the signatures on the documents the robosigners were signing were supposed to mean? Why would the law require their signatures if they didn’t mean anything?

    What the robo signers have done is made it impossible for an American to look at a signature on a legal document and know it means something.

    The solution is not to redistribute some wealth, it is to send the robosigners and their bosses to jail and force the signers that replace them to do the job they were hired to do.

    As far as the AGs, they are adding insult to injury.

    Every single AG who has received donations from these banks should be directed to return the donations and recluse them selfs from the matter. The ones that asked for money from them should be fired.

  2. Carlos says:

    Just like with higher taxes, just like with being collection agents for the IRS, just like with any rule the government (federal, state or local) imposes on any business, it will not be the business that pays, it will be the customers (i.e. – the taxpayers).

    Unfortunately, not only does the thugocracy not understand this, but neither does half the Republican Party leadership.

  3. pagar says:

    Carlos, with my plan, the only costs to the public are the trial and the jail expenses. There will, of course, be a horrible cost to the banks as they are forced to go back to the being of the MERS mess and straighten out the titles they have fouled up.

    With the money the AGs are talking about. The crime just continues because once the house has be foreclosed thru fraud no one is ever going to have a clear title to that house.

    In other words, we ain’t seen nothing yet. Meanwhile we still have people claiming robo signers didn’t hurt anyone.
    That is totally wrong.

  4. Kate says:

    ..and where was the government oversight in this robosign business. The banking community has not been very good at policing itself. But of course, there is compliticity in this matter. Let’s look under some stones and see whose been taking that little pay-off for doing such a thing.

    Of course asking the AG of the US to do his job is asking too much. He’s too busy questioning CIA agents.

  5. captaingrumpy says:

    Obama gets away with anything because Americans are gutless and will not impeach him. If enough average folk marched on Washington demanding he be impeached, I bet it would stir the lazy fat republican leadership.

  6. Carlos says:

    For the Republican leadership, Grumpy? Only if the stakes are high enough.

    In other words, it’s the jackasses who pays attention to rioting voters. The Republican leadership, for the most part, want unidentifiable booze, broads and bills.

    And before anyone jumps me for the sexist reference there, it was simply for the alliteration. Not that that would make any difference to someone easily offended…