GOOD Mobile | Why Are Wall Street Banks Coughing Up $26 Billion?
The US Attorney General and the Attorneys General of 49 states reached a settlement with several banks regarding illegal practices in connection with mortgage foreclosure lawsuits. The settlement requires the banks to pay $26 billion, about half of their profits for last year. The money is to be used to compensate owners who lost their homes in connection with the illegal practices and to help underwater homeowners refinance their loans. Is $26 billion enough when there are $700 billion in underwater mortgages in the US?
Also see this article from the New York Times discussing the settlement.
The allegations of wrong doing generally concern “robo-signing” of bank documents, which includes producing sworn to documents admissible in court without the signer actually having any knowledge of the documents contents. See article discussing robo-signing below.