Another sweetheart bank settlement on mortgage fraud

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  • Another sweetheart bank settlement on mortgage fraud - World Socialist Web Site

    http://www.wsws.org/en/articles/2013/01/09/bank-j09.html

    Another sweetheart bank settlement on mortgage fraud
    By Andre Damon

    9 January 2013

    Ten major financial firms agreed on Monday to pay $3.3 billion in cash to settle allegations of mortgage fraud by the Office of the Comptroller of the Currency (OCC) in the latest in a string of sweetheart settlements between the major Wall Street banks and their nominal regulators. As usual, there were no criminal charges and no bank officials were held accountable.

    The settlement, which nominally totals $8.5 billion, includes $3.3 billion in direct payments to borrowers and $5.2 billion in loan modifications and other forms of “borrower assistance” left largely at the discretion of the banks.