
New York Attorney General Eric Schneiderman and California Attorney General Kamala Harris, who agreed to join more than 40 other states in a nationwide settlement, announced today.
So the foreclosure settlement is through.
A few weeks back, I was optimistic about it - I had been worried that it was going to contain broad liability waivers for all sorts of activities, and I was pleasantly surprised when I heard that its scope had essentially been narrowed to robosigning offenses.
However, now that the settlement is finalized, and I've had time to think about it and talk to people who know far more than I do about this, I'm feeling pretty queasy.
It feels an awful lot like what happened here is the nation's criminal justice honchos collectively realized that a thorough investigation of the problem would require resources they simply do not have, or are reluctant to deploy, and decided to accept a superficially face-saving peace offer rather than fight it out.
So they settled the case in a way that reads in headlines like it's a bite out of the banks, but in fact is barely even that. There will be little in the way of real compensation for stuggling homeowners, and there are serious issues in the area of the deal's enforceability. In fact, about the only part of the deal we can be absolutely sure will be honored in full is the liability waiver for the robosigning offenses.












Comment: Sounds like the drumbeat of Ponerology in that pathological individuals insert themselves into various institutions in an attempt to control ideas of the common populace and in this case, by erasing history for nefarious purposes. These individuals truly believe their subjective view of the world and, in turn, strive to impose it upon others. For more information on Ponerology - The Science of Evil, see these Sott links:
Political Ponerology: A Science on The Nature of Evil adjusted for Political Purposes
Ponerology: The Study of Evil - Interview with Marian Wasilewski
For information regarding an authoritarian mindset see:
Hypocrisy of the Authoritarians
For more on the author of Political Ponerology, Andrew Lobaczewski
Sott.net Interview with Andrew Lobaczewski