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View Diary: NY Atty. Gen. Schneiderman LOVES Today's Mortgage Fraud Deal. UPDATED x3 Liz Warren Likes it Too! (261 comments)

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  •  Lots of important stuff still stays in (15+ / 0-)

    I think this deal is actually a masterful tightrope walk.  At first glance, it doesn't seem to be that impressive, but when you dig a little, you find it's structurally sound.

    Specifics (borrowed from a very concise post from RhodaA yesterday morning):

    Specifically, this settlement does not:

    Release any criminal liability or grant any criminal immunity.

    Release any private claims by individuals or any class action claims.

    Release claims related to the securitization of mortgage backed securities that were at the heart of the financial crisis.

    Release claims against Mortgage Electronic Registration Systems or MERSCORP.

    Release any claims by a state that chooses not to sign the settlement.

    End state attorneys general investigations of Wall Street related to financial fraud or the financial crisis.

    “Are you calling the Koch brothers during the recess?” - Henry Waxman

    by thenekkidtruth on Fri Feb 10, 2012 at 01:34:41 AM PST

    •  What Does It Do? (1+ / 0-)
      Recommended by:

      If it gives banks nothing, why did they just pay $25B for it?

      "When the going gets weird, the weird turn pro." - HST

      by DocGonzo on Fri Feb 10, 2012 at 05:08:15 AM PST

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      •  I imagine it gives them (0+ / 0-)

        a lower cost.

        Continuing the lawsuit would cost the companies a huge chunk of change, and it could go on for years. It was also negatively affecting their stock prices, and it was really negative publicity.

        By white collar standards, this is a shitty deal for the banks. They are used to paying in exchange for being exempted of all wrong-doing. They didn't get that here. So, they cut their losses.

        "YOPP!" --Horton Hears a Who

        by Reepicheep on Fri Feb 10, 2012 at 10:09:01 AM PST

        [ Parent ]

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