Huzzah! NY Attorney General actually files lawsuits against big banks for MERS

[NPC Dave]

A.G. SCHNEIDERMAN ANNOUNCES MAJOR LAWSUIT AGAINST NATION’S LARGEST BANKS FOR DECEPTIVE & FRAUDULENT USE OF ELECTRONIC MORTGAGE REGISTRY
Complaint Charges Use Of MERS By Bank Of America, J.P. Morgan Chase, And Wells Fargo Resulted In Fraudulent Foreclosure Filings

I have posted a lot on this in the past, ever since TARP. In summary, the banks basically committed fraud in all 50 states, and have been trying to get the Obama administration to waive all criminal and civil liability by paying a fine. The Obama administration has been working very hard for the banks lobbying all 50 attorney generals to give them a sweet heart deal, paying a fine of $20 or $25 billion the last I heard.

Knowing the banks, if they are willing to pony up $25 billion, that means, at minimum, they know they are liable for $250 billion worth of fraud, and probably a lot more.

It is nice to see that although we have two Bank parties in this country(the first the Democratic party, the second the Republican party), the crimes are so great that it was impossible to herd 50 attorney generals to all go along with a wrist slap. Here is hoping a few more break ranks and start prosecuting these criminals.

[Evil Lincoln]

Awesome. Go NY!

[Ashenfall]

While I applaud the NY AG for filing suit, I have to wonder what the net effect of this will eventually be.

We saw at the end of 2008 that we were the ones who wound up paying for the banks' and Wall St's greed and ineptitude, while the CEOs got multi-million dollar bonuses.

So how do the banks wind up on the hook for 250 billion (or more) and us not pay for it?

[Comrade Anklebiter]

Expropriate the banks!

[Xabulba]

Hope the ballsiness spreads to the other 49.

[Kelsey MacAilbert]

It won't succeed. I don't see how it could. You have to remember that large corporations like this have a lot of legislative power in this country.

[Evil Lincoln]

Kelsey MacAilbert wrote:

It won't succeed. I don't see how it could. You have to remember that large corporations like this have a lot of legislative power in this country.

You're right, of course. But remember, the dumptruck full of money only works if it isn't on public display, or if it is, they must craft a believable narrative of why it's not corrupt.

We're reaching the point where it is no longer on display, and where it is, it is not believable.

They're only held in check by their own concern for an angry mob. Those are bad for business.

[NPC Dave]

Ashenfall wrote:

While I applaud the NY AG for filing suit, I have to wonder what the net effect of this will eventually be.

We saw at the end of 2008 that we were the ones who wound up paying for the banks' and Wall St's greed and ineptitude, while the CEOs got multi-million dollar bonuses.

So how do the banks wind up on the hook for 250 billion (or more) and us not pay for it?

That is an excellent question.

First thing to realize is that if the banks suffer no civil or criminal penalties for their fraud...then that is a green light to commit more fraud. What is to stop them from arbitrarily slapping a $5 charge on everyone's checking account and then waiting for people to realize it and refusing to refund the money already taken? Right now only one attorney general.

But ultimately, because governments back the banks, provide bailout money, and support fractional credit even when it reverses into a nasty recession, taxpayers will end up footing the bill.

Long term people either have to stop voting for the Bank party, or wait for the US government to make a major default on its financial obligations. Since the Bank party also promises people their Social Security, Medicare, making people "safe" and other benefits...it will only be when those promises are broken and the majority of people realize they are losing under the system that the big banks will be brought to heel. And by that I mean go bankrupt.

[thejeff]

The other thing you can do is take your money out of the system. Move to small local banks or to credit unions. And tell them why.

It's a small step on an individual scale, but if enough people do it, it will have an effect.

[Evil Lincoln]

100% credit union here already.

People complain about their banks all the time, and I can deposit my checks from my phone.

Plus, I actually have a vote on what gets done with my money.

What are you all waiting for?

[Ashenfall]

I can see shifting to credit unions, which banks hate. (Too bad, so sad.)

In the long-run, though, I keep wondering about various legislative ways to hold the banks accountable, and I keep coming up with bupkis.

[Grand Magus]

Pawn Shops.

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