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Heidi Moore, finance and economics editor at The Guardian, discusses the federal lawsuit against Bank of America.
Hi, As a borrower who lost her home in GA due to a bad loan and foreclosure, all I want to know is this: When is justice going to come to me? When is someone going to apologize to me and give me my money back? The crooks, bankers or non bankers, should go to jail. They knew the business of loans and mortgages because it was second nature to them. I did not know the business. All I wanted was a home. I had an excellent credit score. Now I have nothing. Eugenia Renskoff
David from Maplwood, I was also under the impression that the Countrywide buyout was part of the government-driven consolidation that took place in the fallout of the sub-prime crisis. That was true in the case of Merrill Lynch, but that was not the case with Countrywide.
B of A actually *wanted* to buy Countrywide. The deal was announced in January 2008 -- months before the government started pushing big banks to rescue smaller institutions. It also became public that Countrywide was under investigation for mortgage fraud before the deal was finalized, so B of A can't claim they didn't know there were problems when the bought the company.
@Truth & Beauty, it's not the kind of case where the lawyers get 30% of the verdict or settlement. Government lawyers -- who make high-five/low-six figure salaries -- are bringing the case for Fannie and Freddie. If 20 of those lawyers worked full time for 2 years on the case it would cost about 4-5 million dollars. BofA's lawyers on the other hand will probably make tens of millions defending the case.
Those against moral-relativism will argue that the guns/vs/guns scenario is what you get from decentralized control/morality/regulation whatever. If we say "wild west scenario" then maybe more people will get the analogy.
But civil suits allow the perpetrators to walk away with the money in their pocket -- they have little or no liability or risk by being caught. Therefore, there is no incentive for individuals to NOT make decisions that makes them rich (privatizes gains), but bankrupts society (socializes losses.)
The companies wind up paying the fines, not those who most benefited and made the decisions to break the law and loot the kitty.
what kind of logic is that??putting CEO's in jail didn't prevent future fraud? so we should stop sending murderers to jail because murders still happen after other murderers are punished? this is idiotic and why this corruption wil NEVER change.
Fanny/Freddy have been in biz for decades, nearly a century!Countrywide was in biz for far less. Countrywide was the biggest crook in the mortgage crisis - it's not their fault. they were left with the crap on their hands! they didn't write these crap mortgages.
I wish for once someone in the media come out to vindicate and extol Fanny/Freddy and what an important job they did in America for so many decades. They provided low income Americans with sound financials a home for Decades!
If I understand the BoA lawsuit, it is primarily based on loans the formerly independent Countrywide mortgage originator made. The U.S. government strong-armed BoA into buying Countrywide at a time of crisis (2008). I understand that legally BoA is fully responsible for past acts of Countrywide, but I think that belongs in the discussion.
It's nice that Freddie and Fanny are suing BOA, but, of course, the attorneys make out better than anyone. How much of the money that Freddie and Fanny are suing for will actually get back to them?
Reservoir Dogs analogy - brilliant.
the previous CEO of B of A was practically coerced to buy countrywide by the Bushies in the WH.He took the fall and so did Fanny/Freddy who themselves were bullied by Mozillo to buy this crap on their books.
How mazolli (the CEO of countrywide) is not in jail is the poster child for how corrupt the banking center and bailout were.
BoA and all the biggy banks are friends of Congress and the administration so this may be another wasted segment talking about the same garbage with the same words over and over since 2008. The banks and the government are just bamboozling us all with spin and lies. Please unless they truly make these banks pay for the damages they've brought to out economy and financial system this talk and spin and nonsense will go on and on and on....
This is DISGUSTING!!!! Bank of America did not do this, Countrywide did it. FANNY AND FREDDIE KNOW THESE WERE BAD MORTGAGES WHEN THEY TOOK THEM!!!!
Bank of America was pressured into the Countrywide purchase by the Community Reinvestment act.
So when are we going to go after ALL of those responsible?????
Can we sue Fannie/Freddie...they are just as bad
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