California, following on the heals of New York, has pulled out of the 50 States Attorney General Settlement with the top 5 wall street banks regarding foreclosure fraud. I don’t know what the numbers look like right now, but without New York and California, it seems like this isn’t going very far. There were already 5 or 6 other states that had not signed on to the 50 States Attorney General Mortgage Settlement led by Iowa’s State Attorney General, Tom Miller, along with Bank of America and JP Morgan Chase.
If the top law officials across this country can’t extort $20-$25 billion from the big banks for mortgage and foreclosure fraud, perhaps they will actually start prosecuting for crimes committed. There hasn’t been much of that I believe in part because they were trying to recoup what amounts to a nominal amount – yes, $25 billion is a nominal amount in this particular situation.
Let’s see what happens. My guess is at some point in 2012 we’ll start to see prosecutions. It’s an election year.
- 50 States Attorneys General Settlement with Top 5 Banks Over Mortgage Fraud (johnmurphyreports.com)
- 50 States Attorneys General Settlement with Top 5 Banks Expected this Weekend? Not So Fast (johnmurphyreports.com)
- California AG Kamala Harris Rejects Foreclosure Fraud Settlement (news.firedoglake.com)
- Another Blow For America’s Banks (And Bank Of America) After California Kills Robosigning Settlement (zerohedge.com)