You read or hear about these sorts of agreements. Corporation X engages in practices that are patently illegal and, when their fingers are caught in the cookie jar, they eventually negotiate with the government to pay a fine that looks significant and causes most people to say that it is a punishment justly deserved.
Take this recent news story posted at TPM Muckraker.
It's nothing more than a teeny tiny slap on the wrists. These lenders have made tens and hundreds of BILLIONS of dollars off of illegal foreclosures. If over this five year period a corporation like Countrywide realized, say, $10 billion in income, that $20 million fine amounts to 0.2% of their windfall!
Oh yeah, that will really, really hurt!
Put in terms that normal folks like you or me would understand, it would be tantamount to paying a $50 fine for defrauding your neighbor out of $25,000. If that's all you had to pay, do you think it would stop you from defrauding more neighbors out of $25,000 each?
Take this recent news story posted at TPM Muckraker.
Two lenders who wrongfully foreclosed upon active duty members of the military without obtaining court orders will provide more than $22 million in million in monetary relief under settlement agreements with the federal government.Twenty MILLION dollars doesn't sound like chump change, but as Matt Taibbi points out in Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America, that is precisely what it is!
BAC Home Loans Servicing LP -- formerly known as Countrywide -- will pay at least $20 million in the agreement to resolve allegations they foreclosed upon about 160 servicemembers between January 2006 and May 2009 without seeking court orders, said DOJ. They also agreed to pay any servicemember wrongfully foreclosed upon during that period.
Saxon Mortgage Services Inc. will pay $2.35 million to resolve allegations they foreclosed upon about 17 servicemembers between January 2006 and June 2009 without court orders, according to DOJ. They also agreed to pay any servicemember who was wrongfully foreclosed upon from July 2009 through 2010...
It's nothing more than a teeny tiny slap on the wrists. These lenders have made tens and hundreds of BILLIONS of dollars off of illegal foreclosures. If over this five year period a corporation like Countrywide realized, say, $10 billion in income, that $20 million fine amounts to 0.2% of their windfall!
Oh yeah, that will really, really hurt!
Put in terms that normal folks like you or me would understand, it would be tantamount to paying a $50 fine for defrauding your neighbor out of $25,000. If that's all you had to pay, do you think it would stop you from defrauding more neighbors out of $25,000 each?
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