What does $25 billion buy?
Cold comfort.
And for Nevada, it’s not even $25 billion. It’s more like $1.5 billion.
That’s the state’s likely portion of the hush money five major lending institutions are spending in order to avoid being taken to criminal court — and probably convicted — by multiple states’ attorneys general for conducting widespread foreclosure fraud. The fraud included things like robo-signing, forging loan documents and other wrongdoing that likely only exacerbated the hardship homeowners were already experiencing during the nationwide housing implosion.
Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., Citigroup Inc. and Ally Financial Inc. are parties to the agreement.
Nevada’s portion might sound like a lot. And given that only 1 percent of the population is getting 6 percent of this money, at least we have that.
But, the banks got us into this mess in the first place. And then when everything imploded, they got bailed out. While people were losing their jobs and attempting to save their homes at any cost, the banks, flush with taxpayer money, turned around and fraudulently foreclosed on potentially thousands of homeowners. A good rough estimate of the number of people screwed nationwide is 750,000.
We’re not talking about payday loan stores or seedy pawn shops; we’re talking about the nation’s top banks, who shared in at least $200 billion in taxpayer funded bailouts immediately after the excrement hit the cooling device.
In Southern Nevada, there have been 100,000 foreclosures since 2007. Another 400,000 more are likely underwater, which spells future foreclosures as far as the eye could see.
Las Vegas research firm Applied Analysis reports that Southern Nevada has lost — hold on — $91 billion in equity. Forget the tears, the divorces, the suicides, the sleepless nights — $91 billion is gone.
And for that, $1.5 billion is a slap in the face.
We happen to like our state’s attorney general. Catherine Cortez Masto was among a hand full of attorneys general who balked at accepting any deal from the banks — the smoking gun was still warm on the fraud investigation, you see. But, in the end, like in other states, she gave in and took the money.
She said borrowers in Nevada would reap $42 million in refinancing benefits. And those who lost their homes to foreclosure from 2008 to 2011, who were almost “loan serviced” into an early grave, would qualify for $57 million in cash payments. Nevada will also receive a $60 million direct payment.
But what about the criminal wrongdoing? Our feeling is the banks owe at least the $1.5 billion anyway — let’s call it our portion of the interest on the first $200 billion in taxpayer loans (total bailouts: $1.7 trillion, with a ‘T’ trillion.)
Let us get this straight: Wreck the world economy, tell U.S. leaders bail us out or face a second great depression, get TRILLIONS in taxpayer money, and then turn around and continue your crime spree by perpetuating actual criminal fraud against people who lost their jobs and their ability to pay their over-priced mortgage because you wrecked the world’s economy? Cherry on top — give back just enough money to keep from going to prison.
America wouldn’t have it any other way, right? We’re number one all right.
The politicians who bought this deal probably realize that it’s value is much more than $25 billion; it’s also the cost savings from not having to spend billions in legal fees to take these leaches through the court system. And for the peasant homeowner, if you indeed got screwed out of your house, a big fat $2,000 check could be coming your way. Woo hoo!
Well, the point of this editorial isn’t to rehash what you already know — that politicians and the bankers are out to screw you and avoid jail at the same time — but to provide you with a little bit of advice regarding revenge.
Your own attorney general doesn’t have the gumption to take on the world’s biggest banks, and that’s understandable — she makes very clear, by the way, that this settlement in no way prevents YOU from taking on the world’s biggest banks (good luck!). Why do we have an attorney general again?
Anyway, here’s what you do. Cut up all your credit cards and get rid of any accounts you have with the major banks. Find your local teachers credit union, federal credit union, or some space in your underwear drawer. Cash your checks at Irene’s Casino or wherever. Cut ties with the likes of these big banks. In debt? Get a second or third job, donate plasma and sell all but your most valuable belongings. Save for your future starting now. Pay with cash and make a plan that involves never doing business with another bank ever again. It won’t be easy, revenge never is. But someone needs to step up to the plate and it might as well start right there with you.