This month, the obvious topic for discussion was the recent $25B bank settlement, with the Department of Justice and 49 state’s attorney generals. In case you missed it, the five largest “too big to fail” (TBTF) banks settled allegations related to the “robo-signing” scandal, of a year and a half ago. This scandal as you’ll recall, involved clerical personnel signing and/or forging the signatures of bank officers, on foreclosure documents. Was this practice illegal? Yes of course. On the other hand, so is jay walking, and it should be reiterated that there were no reported cases of consumers who were foreclosed upon, who were not otherwise in default on their mortgage. So how much of this $25B will these questionable “victims” receive? Well that would be just $1.5B, or what amounts to approximately $2000 each, and the banks have up to three years to make those payments! Huh? “So where is the other $23.5B going,” you ask? Well let’s take a look!
