Tuesday, February 03, 2015

Indiana's Share Of S&P Settlement Only $21.5 Million

S&P misrepresented credit ratings for mortgage-back securities from 2004 to 2007, the lead-up period to the mortgage meltdown and ensuing financial crisis that signaled the beginning of the Great Recession and resulted in the largest bank bailouts in American history. The credit rating agency settled a lawsuit brought by the U.S. government for just $1.4 billion, a fraction of the economic losses sustained by the American people. Indiana's share of this measly settlement is just $21.5 million. Attorney General Greg Zoeller says that most of Indiana's share will be deposited in the state's general fund. The entire settlement, which should have been much higher, should have been used to pay down the little people's mortgages, not paid back into the government's coffers, since it's the little people who ultimately paid the price for the banking fraud.


Anonymous said...

What's "most?"

Lots of graft possible in $10.75M.

Anonymous said...

I have a good friend who lost his house. He had a predatory loan placed by a "broker" for his first home. The interest rate re-set and made the monthly payments almost double. He was never told about that possibility, and when it happened, he couldn't pay, no one could help, and he was too proud to make much of it. He lost the only home he ever owned, his credit was ruined, and now he lives in a tiny 1 bedroom apt. It was a crime, the thing that was done to him, and ridiculously out of touch people who blame these victims by saying they should have known what they were signing are the real idiots. These people were given paperwork to sign based on lies, and many of them don't read and write that well. They were cheated, and the proceeds from any settlement should go to making them whole again. Our Attorney General. A crook in his own right. I spit on his reputation. A gay bashing, Republican tool that never had an original thought in his life. He probably thinks this is a great personal victory for him. The name Zoeller is enough to make me puke. Indiana used to have a fine reputation for honest folk. What are we becoming? Do you ever ask yourself that?

Pete Boggs said...

Anon 4:51: Attorney General Zoeller isn't the problem. You need to research Dodd / Frank banking legislation.

In addition to doing great damage to the entire lending business; these idiots single handedly ruined a legitimate financial concern, Indy Mac (CA not Indpls based); by floating FALSE rumors about this private sector lender.

Flogger said...

I think we can be sure No One went to Jail for this. At least I could find any mention of it or see a Wall Street Crook being led away in cuffed and chained.

The Big Companies have learned all they need to do is pay the fine (Bribe) and the Human Perps go free.
The Corporation can fire low level employees because the Corporation is not meeting Wall Streets Profit Expectations.