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Okay, that's a pretty good resource. I will note that you're quoting a $17 billion fine that was redistributed to the people affected, but it sounds like the ma
by MichaelBurge 11y ago
Okay, that's a pretty good resource. I will note that you're quoting a $17 billion fine that was redistributed to the people affected, but it sounds like the main contention is that nobody went to jail. It all seems plausible, so I can't fault investors for demanding that.
Reading between the lines, I see that the Justice Department is most annoyed that the FDIC and government-sponsored Fannie Mae and Freddie Mac took the heat from these loans.
I can see why the JD is motivated, but it does raise the question of why individuals all over are so angry. A couple reasons might be A.) There was an unpopular tax imposed to pay for the bailouts B.) People overpaid for their mortgages(I see that this settlement includes principle reduction on outstanding mortgages) or C.) Angry people are primarily investors in mortgage securities.
I feel like A would've been mentioned by now. And C is unlikely because I don't think note investing is actually that common: Banks don't usually sell their mortgages to one-off investors, so you usually have to trick a really small local bank into giving you one to get into the club; and then you need the skills to be someone's 'lienlord'.
So is the root cause of the anger B: People feel like they overpaid for their houses?