State AGs Getting Almost Ready to Sell Homeowners Down the River on Foreclosuregate

(Also check out my April 1 post, about the federal regulators ready to come in to the rescue of TBTF banks... And see my vid on foreclosuregate!)

As Matt Taibbi said in his last piece in The Rolling Stone magazine, no one, absolutely no one in TBTF Wall Street banks goes to jail.

From Bloomberg (3/7/2011):

State attorneys general and federal officials hope to reach a final settlement with banks over their mortgage-servicing and foreclosure practices within two months, a person familiar with the negotiations said.

The officials, who submitted a 27-page settlement proposal last week to start negotiations, aim to reach an agreement with the banks in six weeks to two months, said the person, who didn’t want to be identified because the talks are private.

Oh great. They are cutting deals without telling us. What else?

Attorneys general are meeting today in Washington, where they are scheduled to get an update on the investigation into the mortgage-servicing practices of banks and the efforts to reach a settlement that could overhaul their procedures. The states began the probe last year after complaints that financial institutions submitted faulty paperwork in foreclosure cases.

Faulty? You mean FRAUDULENT.

Homeowner activists protested outside the meeting of the attorneys general, criticizing banks and demanding state and federal officials reach a tough settlement with the companies. They also called for criminal prosecutions.

So these state AGs are settling on behalf of ... exactly whom? It's decidedly not the homeowners who have been foreclosed fraudulently or are being foreclosed fraudulently. If they live in judicial states they may have some recourse. If they live in non-judicial states, everything conspires against them, including the court systems and attorneys, if they dare want to contest the fraudulent foreclosures.

Therefore, my conclusion is that the state AGs are settling for the banks, and give them the best deal they can come up with, at the further expense of homeowners.

No one goes to jail, not if you are bankers and politicians.

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