?

Log in

No account? Create an account

Previous Entry | Next Entry

The Bagman And His Getaway Driver

It was one of the greatest scams Big Business ever pulled. Lest anyone forget that politicians are underwritten by major corporations to make sure their interests are represented, we got the federal bailouts (I don't blame Obama. Yeah, he may have signed off on it, but any corporate backed President would have. Shrub was a "bidnessman." You honestly think he would have fought against the bailouts?). Money was taken from taxpayers and given to big banks to loan to taxpayers. So the taxpayers not only didn't get the money back (it was a LOAN, after all), but had to pay interest. Well, sort of. Getting approval for anything was nearly impossible. I know a couple with a PERFECT credit rating that tried getting a new SUV. EVERY bank turned them down as too risky. The banks spent the money given to them to line their pockets.

As financial Darwinism took over, it was no longer survival of the fittest. Some banks were too big to fail, some were too small to let live. Once again, both parties deserve the blame for this. Banks got rules to enable them to streamline their processes, and a wave of foreclosures hit. Done without paperwork. Without research. In some cases, without cause, as in the case of the couple I reported who paid cash and Bank Of America tried to foreclose on them anyway.

Last fall, the Attorneys General of all fifty states began looking into the practices of Bank Of America, Wells Fargo, JPMorgan Chase, and Citigroup. The leader of the crusade was New York AG Eric T. Schneiderman. But since then, two things have happened. First, a number of AG's simply lost interest in pursuing this. The other is the banks have united to cut a deal with the feds. They would rather pay a one lump sum ($20 bil) and end the lawsuits instead of dealing with several ongoing ones around the country.

Schneiderman has continued his pursuit of the banks. Now, it turns out the Obama Administration is putting the arm on him to drop his quest and let the feds handle this. Reported in the New York Times, "Shaun Donovan, the secretary of Housing and Urban Development, and high-level Justice Department officials have been waging an intensifying campaign to try to persuade Schneiderman to agree to the deal which changes no laws but protects the banks from future lawsuits.

This is what happens when Big Business is tied so closely to politicians -- not only do they get all these neat little rules made for them, but the politicians have a vested interest in protecting them. Not just for the contributions, but also the political black eye this can yield with a tough election season just around the corner.

As the saying on the Internet goes, "If you aren't outraged, you aren't paying attention."

Comments

( 1 comment — Leave a comment )
4shatteredstars
Aug. 25th, 2011 01:22 am (UTC)
*shakes head*

P.S.
I totally use you as my source for important things that are happening because the news is way too boring/depressing/sensationalist for the likes of me. I usually here stuff from you first. However THIS, I did not:

http://techcrunch.com/2011/08/24/steve-jobs-resigns-from-apple/

I hope you plan to discuss, and I look forward.
( 1 comment — Leave a comment )

Latest Month

June 2019
S M T W T F S
      1
2345678
9101112131415
16171819202122
23242526272829
30      

Tags

Powered by LiveJournal.com