Jacob Lew vs Tim Geithner

~Jacob Lew versus Tim Geithner-for banks- little slap for their corruption!

Citigroup 7 billion for egregious misconduct – Bank of America 17 billion writing and securitizing bad loans – 10 billion to treasury – 6 billion to states – 7 billion earmarked distressed homeowners – Bank of America gets 4 billion tax reduction on this American taxpayers are going to be subsidizing the settlement – takes it down to 13 billion. As for the 7 billion for homeowners relief – will never amount to more than $.50 on the dollar – so cut off another 3 billion or so – stocks went up 4% so Bank of America got advantage. So, this tells you what Wall Street thinks of this – a soft settlement when stocks go up.
 The damage is measured in the trillions. These settlements are more to conceal than to reveal – carefully crafted settlements.

How much did the banks make from its years of fraudulent conduct or how much did investors, customers and clients lose?
To evaluate the settlement – if the bank made 200 billion – 17 billion doesn’t look like much if investors and clients lost 100 billion – 17 billion doesn’t look good – they did not provide this information.
From Hari Steenivagan’s story PBS not a single banker was punished for the crime and lawbreaking on Wall Street or anyone else. Bankers commit crimes not banks – bankers get to keep their bonuses, positions and the bank gets to use shareholders money to pay off and buy a get out of jail free card – not one banker was punished.
Mr. Jacob Lew, now the US treasury secretary is supposed to offer a set of federal programs to help homeowners after the financial crisis. After the former Treasury Tim Geithner admitted the treasury did not do much, if anything, to help homeowners, they ignored homeowners, but slept while they were being foreclosed on and treated them like criminals while the corrupt banks received royal status of bailouts. Figures of 46 billion from the bailout money out of the trillions allotted to banks, 46 billion was supposed to go to help homeowners. Well – that was what? Six years ago and 38 billion was obligated, but guess what, only 12 billion was allegedly paid out. Where is the proof it was paid out and to whom – the 14 families that Geithner and the White House chose. Source – Geithner’s book. Questions – 46 billion for homeowners – 36 billion obligated – 12 billion paid out – where is the 46 billion – where is the 36 billion supposed to have been obligated – where is it Timmy? And who got the 12 billion that was said to have been paid out?  The CEO’s and executives got their billions in bonuses and compensations with these bailouts – ask the administration, the President, Ask Tim Geithner and ask FDIC Ms Baer – the CEO’s got billions in bonuses when the TARP money went out the door to bailout these large banks. The corruption of banks put homeowners in this crisis – greed – of course, homeowners wanted homes, even homes they may not have afforded due to layoffs – no insurance – no jobs, but guess what folks, who told these people they could afford these homes – who did the paperwork to push a sale through- who were the financial experts at the closing, not the homeowners, banks who reaped the benefits and then were rewarded by the government taxpayer bailout – more executive jets anyone? Ask Citi. So, after four years of selling the homeowners down the drain, Timmy writes a book – I guess we didn’t do enough for the homeowners. As he puts in his own words released in his book. But, they did live high and mighty and put the corrupt banks over the top. Geithner’s sorry ass legacy of screwing
 over homeowners is there – Geithner beating the money drum seeking to bail out banks will follow him. Well, we do have a modification program that supposedly screwed with 1.3 million loans. We can say this was a flop for homeowners- according to Mr. Lew it didn’t help like it should, but scared the banks to behave better. WOW! Let’s hope Mr. Jacob Lew will be more in tune with reality than Timmy Geithner or Scratch and sniff and start over. Forget HAMP – the modification screw overs – let’s make this crayon simple.
1. We know these banks are not broke.
2. We know compensations and big bonuses are rivers of money.
3. Bank of America giving their employees 20% raises- that’s 20%, people.
4. After the pathetic penalty to Bank of America their stocks went up.
5. Will the homeowners ever see any real help from these jokesters of fines for criminal conduct from these banks – looks like the Treasury did.
 Mr. Jacob Lew has a chance to do what Tim Geithner failed to do (but then he had to protect Citigroup at all costs and his pal’s bonuses) or better yet, refused to do.
1. Break it down.
2. When homeowners lost their jobs after they were loaned money from banks, mortgagees who put them in houses that were overpriced to begin with – overpriced homes – securitized their loans – lied to – instead of helping the people they were foreclosed on. – Lied to.
Solution – give these people a decent loan that matches the correct value of the home, not an overpriced Barbie house. No interest. The banks have made a killing off these homeowners. If these homeowners are given a chance – that money will go back into the economy that gives this country a start to recovery. Yes, it may put a crimp in the illegal Swiss bank accounts, the big corporations, jets, slow down the ungodly bonuses, the 20% wage increase for bank employees, the big executive yachts, the world trips – but, no – the chances of this help won’t be seen, won’t stop all that. So much for homeowners who bought overpriced homes they were told they could afford – and their payments going up.  When homeowners and the American people are allowed their rights and to keep their money they earn to pay their bills what they spend goes back into the American economy with CEO millions in bonuses-big banks, executives, politicians, payoffs-goes to foreign bank accounts and foreign mansions- While the value of these homes went down.  The trick-modification that doesn’t work with the idea that these homeowners will re-default like Ocwen counts on – then push them out -take their homes – quite a scam.
Moving on to homeowners who were deliberately thrown into foreclosure because their loans were securitized and illegal fees added on monthly to double their payments. Servicers who are looking to get rich, filthy rich at the homeowners expense and they did. The banks have been rewarded for their corruption. The homeowners have been punished. The banks were bringing this country to its knees by its big executive greed – they were bailed out by taxpaying homeowners who were brought to their knees and still are by corruption. Tim Geithner and/or the administration looked the other way. Geithner mentioned duct tape and string – well, it looks like this is still the case from the Treasury unless things change. Talking about subsidized loans for apartment buildings – new loans under Treasuries directions – affordable rental buildings – from Bank of America fines. If this administration is, and Mr. Jacob Lew are serious about helping homeowners and the people – listen to the people. The homeowners who were destroyed and still are facing corrupt illegal bank servicers foreclosures – forced to make deals because Judges are allegedly paid off to favor banks instead of being prosecuted – the Judges are allegedly rewarded. There have been some Judges who have stood up for homeowners and those Judges have called these banks and their attorneys on this corruption brought into their courtroom – BUT, these Judges are in the minority – We need more Judges with the guts to actually take notice and make decisions in favor of the homeowners – the homeowners have the evidence if they use it-the Judges have the evidence in front of them if they – the Judges that are not stupid or scared or allegedly paid off -  Most homeowners don’t fight back, even when they are right. The cost is too great against a system that refuses to listen or forgo justice for greed.
 Where is the transparency from the government concerning this corruption. Homeowners are still facing foreclosures. Then we have Fannie Mae and Freddie Mac hiding in the background of securitization.

 Overview here – we have homeowners living in overpriced houses. struggling. Treasuries option-If they drop the price to some range where it belongs through their modification scheme then the homeowners will have to pay taxes on the amount the bank takes off but these regulators and administration, so far, have left hang the provision that excused this modified amount from IRS taxes as income unless it is continued, these homeowners will be facing thousands in taxes on this sick modification joke anyway – that their payments to what the house is really worth or at least comes close – but the government steps up – that’s income for these people. Going to charge them taxes. Let’s say the bank reduces the payment $150,000 – these homeowners are going to be charged this amount as income and be required to pay taxes. Overpriced to start with, that the bank knew when they made the loan deal. Fannie and Freddie should be done away with – bring them out of the shadows and excuse them from this continent. The evil homeowners shadow needs to go. Will the secretary of treasury help the homeowners being destroyed by illegal foreclosures or will he just move on looking for a way to get credit to new homebuyers into more corrupt securitization programs where the servicers can double their payments with illegal fees to force them into foreclosure- more to come- stay tuned.
This article is an opinion – the contributor is certainly not an attorney – This article is not intended to give advice in any matter or manner.