US banks offered deal over lawsuits

[alp227]

Source: Financial Times

Big US banks in talks with state prosecutors to settle claims of improper mortgage practices have been offered a deal that is proposed to limit part of their legal liability in return for a multibillion dollar payment.

The talks aim to settle allegations that banks including Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial seized the homes of delinquent borrowers and broke state laws by employing so-called “robosigners”, workers who signed off on foreclosure documents en masse without reviewing the paperwork.

According to five people with direct knowledge of the discussions, state prosecutors have proposed settlement language in the “robosigning” case that also might release the companies from legal liability for wrongful securitisation practices.

Some state officials have expressed concern that they have offered the banks far too broad a release from liability. Others say the broad language was perhaps inadvertently crafted and will be tightened as negotiations continue. Participants on both sides stressed the talks remain fluid.

Read more: http://www.ft.com/intl/cms/s/0/3602091a-d7e0-11e0-a5d9-00144feabdc0.html#axzz1X8O1A9UA

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[msongs]

1. no stinking sell outs please. then again, for banks any violation can be bought off nt

[scribble]

2. Did NOT work for me ...

and this could be an important article.

I would like to know: Is this a release for CIVIL liability, or for CRIMINAL liability, or for both? How does that work?

Does this bargain simply mean that State Attorney-Generals will not originate investigations and prosecution themselves, or that they will not allow others to originate prosecution as well? How does THAT work?

There are questions here that I'll bet our intrepidly fucked-up Journalistic community was not smart enough to ask.


sc

[Demeter]

7. It's complicated and ugly and unfair

Basically a Get Out of Jail card for the banksters.

[dixiegrrrrl]

3. EXACTLY what I said would happen, some time ago.

This has all been kabuki theater. The AGs get good PR for looking tuff, as did the Gov't watchdog agencies that piled on ONLY in the last few days, then the banks gt "fined" a few cents on the dollar, which is MUCH less than any interest or taxes they should have paid, every body goes back to the same old game.
Added bonus:
no criminal charges for collusion, racketeering, RICO, so bank honchos can continue to rake in those huge bonuses.
Believe me, that "deal" was worked out a long long time ago.

[plumbob]

4. Pennies in fines for BILLIONS in theft.

Rip-off.

To the max.


Really tired of this shit.

[McCamy Taylor]

5. Where do the "multibillion dollars" go? To balance state budgets or to homeowners.

[russspeakeasy]

6. You can take this "to the bank".

:evilgrin: whatever the penalties are, the banks will make them up in user fees.

[earcandle]

8. Bullshit. They are criminals. Make them pay just like

 poorer people would have to pay for crimes.   These people
committed henious crimes and fraud against our public and
stole from our coffers.  No financial settlements.  Criminals
pay.  Justice now.

[TacticalPeek]

9. "the broad language was perhaps inadvertently crafted and will be tightened"

Hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha!

[The Magistrate]

10. Indeed,Sir:Laughable....

[xchrom]

11. +2

[No Elephants]

12. Shameful

[MiaCulpa]

13. Best to save the prisons for real criminals, like pot smokers

Flat out stating that they're offering to let people off from prosecution for criminal activity in exchange for cash.

When do the rich murderers get their deal?

[BR_Parkway]

14. stop negotiating and start fucking prosecuting

[sarcasmo]

15. No jail time for bankers, shocked I tell yeah, I am shocked.