Turn On The Lights, Watch The Roaches Scatter Part 55

Big news breaking this morning in Foreclosuregate:  Bloomberg is reporting that the 50 state Attorneys General may have reached a settlement with the five largest mortgage banks.

The five largest loan servicers, including Bank of America Corp. and JPMorgan Chase & Co., may be the first to settle with the 50 state attorneys general probing foreclosure practices, Iowa Attorney General Tom Miller said.

No settlements have been reached yet, Miller said yesterday in a phone interview. The other three are Citigroup Inc., Wells Fargo & Co. and Ally Financial Inc., said Miller, the leader of the 50-state investigation. The five have 59 percent of the U.S. market, Miller said.

“What we’re looking at is five separate agreements with the five largest servicers,” Miller said. “We’re still a ways away” from reaching agreements, he said. “We’re working very hard to figure out what should be in the settlement.” 

So all that remains are the details and the numbers...but it looks like the big banks are going to walk away with piddling fines after defrauding millions of homeowners.  Certainly this deal will include the end of any and all other state lawsuits filed by homeowners, and the banks will get away with murder.

And if you're hoping for federal intervention, forget it.

Bank of America settled numerous claims with Fannie Mae for an astonishingly cheap rate, according to a Bloomberg report.

A premium of $1.28 billion was paid to Freddie Mac to resolve $1 billion in claims currently outstanding. But the kicker is that the deal also covers potential future claims on $127 billion in loans sold by Countrywide through 2008. That amounts to 1 cent on the dollar to Freddie Mac.

One cent on the dollar.   Expect those levels of fines to be levied by the states against the big banks too, if that much.

Meanwhile, the settlement with the states will almost certainly involve making MERS binding and legal for mortgage paperwork, allowing the banks to bury their bad deeds and get away with the crime of the century.  If this all goes through as I forsee it, it's over.

We lost.  The banks own this country.  And they will soon spark another financial meltdown and be bailed out again.  That cycle will continue until America shatters.