Banks are painted as villains while the real culprit is the government. Who forced banks to make bad loans under the premiss of fair credit? Who set the down payment requirements and other guidelines? Who accepted fraudulent documents (Fannie and Freddie)? Banks don’t have sufficient funds to make and hold mortgages so they pass them upstream to government agencies. The bank holds servicing rights, which means they basically get some deposits and a small fee for administrative duties. Settlements to date have been a sham and ignored the real cause of the collapse-easy credit without proper due diligence. I think this suit is more about getting a settlement to avoid ongoing and expensive legal fees.
if it’s the govs fault, and we all know it is, then why sue banks? What will be uncovered when we all know that the banks were forced to give money to people they knew couldn’t pay it back. Then they had to make loans more attractive for people (HELOCs for one) so as to make the portfolio more marketable. The only thing the banks were doing was trying to make something out of a pile of crap fed to them by democrats and the government.
I don’t get the rush to sue anyone but the government..