Reuters: States Negotiating Deals To Give Immunity To Banks Committing Widespread Foreclosure Fraud

dees-foreclosure

Reuters reports that states are negotiating deals to provide immunity from prosecution to crooked banks that have been running fraudulent home foreclosure mills all over the country.

As reported previously:

There’s No Recovery Because The Government Made It Official Policy Not To Prosecute Fraud

There will be no economic recovery until the government prosecutes wall street banker fraud

Fraud caused the Great Depression and it has caused the current financial crisis. But fraud is not being prosecuted, and so it will occur again and again, and prevent a sustainable economic recovery.Numerous economists have been saying this for years. As I pointed out in March:

Nobel prize winning economist George Akerlof has demonstrated that failure to punish white collar criminals – and instead bailing them out- creates incentives for more economic crimes and further destruction of the economy in the future. Indeed, William Black notes that we’ve known of this dynamic for “hundreds of years”.

Now mainstream journalists are starting to catch on.

Read The Rest…

Of course those same banks that government the crooks in the government steal $2.5 trillion that is missing from the Social Security fund.

How Your Social Security Money Was Stolen – Where Did the $2.5 Trillion Surplus Go?

How Crooked Politicians Robbed $2.5 Trillion From Social Security

How Republicans, Democrats and the Mega-Wealthy Stole $2.5 Trillion Of Taxpayers Social Security Money

And why wouldn’t the banks help them. They finally audited the Federal Reserve and found that $16 trillion was secretly handed over to the bankers in the form of bailout money.

Fed Audit Reveals Eye-Popping $16 Trillion In Secret Loans To Bailout Bankers

Fed Audit Reveals $16 Trillion in Secret Banker Loans

An audit of the Fed reveals why the establishment resisted an audit for so long – The U.S secretly provided an eye-popping $16 Trillion in secret loans to bailout US and Foreign Bankers – loans which scream of scathing corruption.

Clearly, our government and our entire economy is based on a fascist system of corruption between corporations and bankers.

Now Reuters reports that those same crooked bankers who have been running foreclosure fraud mills all over the country, foreclosing on homes that don’t even have mortgages on them, and killing off people who are investigating crooked judges that are allowing this to happen, are now going to be given immunity from prosecution for their fraudulent actions.

States Negotiating Immunity For Banks Over Foreclosures

By Scot J. Paltrow

(Reuters) – State attorneys general are negotiating to give major banks wide immunity over irregularities in handling foreclosures, even as evidence has emerged that banks are continuing to file questionable documents.

A coalition of all 50 states’ attorneys general has been negotiating settlements with five of the biggest U.S. banks that would include payment of up to $25 billion in penalties and commitments to follow new rules. In exchange, the banks would get immunity from civil lawsuits by the states, as well as similar guarantees by the Justice Department and Department of Housing and Urban Development, which have participated in the talks.

State and federal officials declined to say if any form of immunity from criminal prosecution also is under discussion. The banks involved in the talks are Bank of America, Wells Fargo, CitiGroup, JPMorgan Chase and Ally Financial.

 Read The Rest…

So not only can these banks steal trillions of dollars and not be prosecuted, the government is now making it official policy to allow them to steal our homes and not be prosecuted.

So if you are one of the small people and you film the police you get beaten and jailed. If you download too many public domain documents you face 35 years in prison.

But if you are a corporation you can dump hundreds of millions of gallons of oil into the sea, spew radioactive waste all over the world, steal trillions of dollars from the public and steal millions of peoples homes. Not only do these corporations get away with their actions they get rewarded.

It is specifically this kind of raging inequality that has led to civil unrest around the world and will eventually cause the same kind of unrest here in America.

Raging Inequality May Cause Unrest and Violence In America and the Rest of Western World

 

Preface: While conservatives are against redistribution of wealth and liberals want to tax the affluent, conservatives and liberals, the affluent and the less well-heeled should all agree that we have to stop the surge in inequality from rising further:

  • As Robert Shiller said in 2009:

    And it’s not like we want to level income. I’m not saying spread the wealth around, which got Obama in trouble. But I think, I would hope that this would be a time for a national consideration about policies that would focus on restraining any possible further increases in inequality.

  • The father of modern economics – Adam Smith – didn’t believe that inequality should be a taboo subject
  • Warren Buffet, one of America’s most successful capitalists and defenders of capitalism, points out, “There’s class warfare, all right, but it’s my class, the rich class, that’s making war ….”
  • Conservatives – as well as liberals – are against rampant inequality. But all Americans underestimate the amount of inequality in our country

And while I am not calling for violence, I wonder if this is like South Africa at the end of the Apartheid era, where those in power had to hand over the reins to the majority to prevent violence.

And even if there is not a revolt, we are already seeing increased crime and the breakdown of society. See this and this.

 

Raging inequality was largely responsible for the Great Depression and for the current financial crisis.

I noted in January:

Egyptian, Tunisian and Yemeni protesters all say that inequality is one of the main reasons they’re protesting.

However, the U.S. actually has much greater inequality than in any of those countries.

Is there any way that the growing inequality could cause unrest in America or the rest of the Western world?

Initially, the Greek and Spanish riots have grown out of bailouts and other windfalls for the big banks and hedge funds (see this, and this), and austerity for the working stiff. So in a sense, they are about inequality.

[…]

Read The Rest…

Categories: ECONOMY

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