We Paid For 5 Hidden Bank Bailouts (VIDEO)
The man handed President George W. Bush the one-page paper that would halt the global financial meltdown, a paper that any junior-high teacher would grade “F”. Henry (Hank) Paulson, Federal Reserve Chair, is that man. And he along with all the too-big-fail banks straddled mountains of fraud. Yet who will prosecute them? No one. Not yet.
We paid the bill of trillions. Yet the too-big-to-failers are back in the same spot six years after the crash. I don’t buy the “housing bubble.” With minor peaks and valleys, homes have traditionally been the best investment for people like you and me. Yet for the past 15 years, we are lucky if our homes kept up with inflation. But in many upper income neighborhoods those homes doubled in value. Interesting.
Robert Reich Says It All In English In Under 5 Minutes:
The Treasury Department let insurance giant AIG work some magic and transformed a loss off $2.2 billion into a profit of $17.7 billion according to Elizabeth Warren and several colleagues who wrote in The Washington Post. That would bury most of our houses in money – literally.
And not to be left out of the act, the Fed turned decent interest rates into “near-zero interest rates.” That moved hundreds of billions from our savings accounts, a supposedly safe place for our money, and “pretty” safe retirement investments. A trillion-dollar heist according to Newsweek’s Stefan Theil.
But it gets worse. The Great Recession gave the big banks got a series of settlements. Here are 5 of the worst takers:
Five of our monster-size banks had to compensate us for shady mortgage deals such as robo-signing, bankruptcy abuses and bad foreclosures according to the Justice Department. The banks had to pay us back or restructure loans. Except they didn’t, at least not much.
“At the 35 percent corporate tax rate, that’s a subsidy of around $8.4 billion, courtesy of Joe and Jane taxpayer.”
Bank of America bought a bunch of garbage loans, including ones from Countrywide Financial. They knew it. BAM sold of the junk loans to investors. That is humongous fraud and the DoJ had internal memos and emails to prove it. But they settled, and half of BOM’s payback is relief money to borrower pay. Except investment firms own the shaky loans now. According to tax attorney Robert Wood, they will only pay about $4 billion
The Justice Department knew this mega-bank knew it sold bad loans. But it let the bank write 85 percent off its tax bill.
“At the 35 percent corporate tax rate, that’s a subsidy of around $3.9 billion.”
Then there is Fannie Mae that bought loads of bad loans. So the government took it over in 2008 and let it keep functioning
according to reported for CNN. BAM bought the notorious predatory lender, Countrywide Financial. And 30,000 shaky mortgages. Now that Fannie Mae belongs to the government, the whole deal is tax-deductible.
Remember BOM bought Countrywide with all its underhanded practices. California’s Attorney General, Jerry Brown settled with Countrywide. It was all tax-deductible.
I’m ready for my money back. Are you?