Â Proof that our government is controlled by Wall St. bankers - On both sides of the aisle. Common Dreams:
"The $26 billion settlement that state authorities wrangled out of the nationâ€™s five biggest banks amounts to peanuts compared to the damage that was done to homeowners across the country.
The five banks whoâ€™ve agreed to the settlement are Bank of America (who purchased the nationâ€™s largest mortgage lender, Countrywide Financial), JP Morgan Chase (who bought Bear Stearns), Wells Fargo (who bought Wachovia), Citigroup (who was a major recipient of federal government bailout money), and Ally Financial (formerly GMAC and now majority owned by the US Treasury).
Are you seeing a pattern here? All of these banks have been the recipient of federal bailout funds and some, like Ally Financial, are still dependent on US taxpayers. Nevertheless, theyâ€™ve stockpiled enough cash that they could pay the $26 billion settlement today and not take a hit to their bottom lines. But thatâ€™s not what theyâ€™ll have to do. The settlement terms are much sweeter than that.
Over three years, the banks will help about one million homeowners who owe more than their homes are worth to restructure their mortgages. This is estimated to provide about $20,000 in debt relief per homeowner. Unfortunately, most homeowners in that situation are underwater on their mortgages by an average of $50,000 each, so this provision wonâ€™t be enough to stop the rise in foreclosures and bankruptcies. Furthermore, the three-year timeline is too long; people are in debt and in financial trouble right now, and in three years a lot of people could lose their homes before they see any debt relief from the big five banks."