More settlements … no guilt … no prosecution

From the Star Ledger:

Goldman Sachs to pay $5 billion for its role in housing bubble

Goldman Sachs has agreed to pay more than $5 billion to settle charges it sold mortgages it knew were likely to fail during the housing bubble heydays of 2005-2007, the U.S. Justice Department announced today.

Of that settlement, $1.8 billion has been set aside to help consumers harmed by the practice – with most of it going toward loan modifications, loan forgiveness and forbearance, or to “distressed and underwater homeowners throughout the country,” according to the settlement.

Some of that money will also be used to finance affordable rental housing throughout the country as well – “a crucial need following the turmoil of the financial crisis.”

Settlement money also is designated to settle claims by the Federal Home Loan Bankis in Des Moines, Seattle, Chicago, the State of New York, and the State of California.

The practice of selling high-interest loans to consumers who were unlikely to be able to afford mortgage payments for long resulted in an unprecedented number of foreclosures throughout the country. Goldman Sachs has admitted with this settlement that it resold pools of this high-risk loans without due diligence, according to the Justice Department.

The settlement “expressly preserves the government’s ability to bring criminal charges against Goldman, and does not release any individuals from potential criminal or civil liability,” according to the Justice Department.

This entry was posted in Mortgages, Politics, Risky Lending, Unrest. Bookmark the permalink.

69 Responses to More settlements … no guilt … no prosecution

  1. grim says:

    Nice to see that Lynch is carrying on the Holder tradition.

    Why prosecute when you can just settle?

  2. grim says:

    Democrats more kind to bankers than Republicans ever were.

    All Hail Hillary Goldman Clinton, err, Rodham.

  3. That ginch is just Holder with no dick.

    What she’s doing sniffing into FIFA is nothing more than going on an asset forfeiture hunt. The corrupt US Soccer is using her as their attack dog to divert attention away from their own misdeeds.

  4. Fabius Maximus says:

    I get that people what change in politics, and see Trump as the face of it, but the guy is a fraud and this stuff is going to continue to come out.

    Portrait of Trump’s giving shows free golf, but no personal cash
    http://www.chicagotribune.com/news/nationworld/politics/ct-trump-charity-donations-20160410-story.html

  5. GOP's broken (the good one) says:

    @GuardianUS

    I’m the real-life Gordon Gekko. But I support Bernie Sanders | Asher Edelman

    “A new culture emerged that rewarded bankers for return on equity rather than sound lending practices. The wild west of risk-taking, staked on depositors’ money, became the best sport in town.

    Why not? If management won, they got rich. When they lost, the taxpayer took on the responsibility. If that sounds like a good wager, it was (and is). “

  6. GOP's broken (the good one) says:

    @Salon

    *Any* Republican in the White House dooms us to another financial crisis,
    warns Paul Krugman

    “In his Monday New York Times column, economist Paul Krugman argued that at stake in next November’s election is the future of financial reform, which has been thrown into jeopardy by what he considers a favorable ruling for MetLife in Federal District Court.”

  7. nwnj3 says:

    Damn, I was hoping anon decided off himself after this latest betrayal by his leader.

  8. Comrade Nom Deplume, Recovering From The Slopes says:

    [5] Rory

    None of the above. I like my own.

    [6] Rory

    A rare moment of agreement. Probably the seventh sign of the apocalypse.

  9. Comrade Nom Deplume, Recovering From The Slopes says:

    [8] anonunist

    In a small way, I am looking forward to End of Days so I can legally hunt down you and Krugs.

  10. Comrade Nom Deplume, Recovering From The Slopes says:

    Peru raids Mossack Fonseca office. I’m guessing that many remaining offices are being shut down and documents spirited out of the respective countries. Scene inside must resemble the US Embassy in Tehran before the fall.

  11. Juice Box says:

    If you read NY AG Schneiderman’s press release, he makes himself sound like a hero.

    “Attorney General Schneiderman was elected in 2010 and took office in 2011, when the five largest mortgage servicing banks, 49 state attorneys general, and the federal government were on the verge of agreeing to a settlement that would have released the banks – including Bank of America – from liability for virtually all misconduct related to the financial crisis. Attorney General Schneiderman refused to agree to such sweeping immunity for the banks. As a result, Attorney General Schneiderman secured a settlement that preserved a wide range of claims for further investigation and prosecution”

    http://www.ag.ny.gov/press-release/ag-schneiderman-led-state-federal-working-group-announces-5-billion-settlement-goldman

  12. 30 year realtor says:

    RACISTS! What a sickening display in yesterday’s comment thread. You folks who hold yourselves out as intellectually and morally superior and then spout all that racist BS should be ashamed.

  13. Schneiderman is just Spitzer without the kink.

  14. Is it ok if I make racist jokes as long as I represent myself as a nitwit and intellectual midget?

  15. Libturd at home for one more night before CHOP says:

    Racist?

    Don’t look at me…I’m planning on starting up a Halal ETF.

  16. D-FENS says:

    I would consider yesterday a fairly mild day. I’ve seen personal attacks and far worse written here.

    I find comment threads and social media like twitter fascinating, it’s like a window into what people are really thinking. They’re probably polite and cordial in person, but find their anonymous twitter account or comment handle if you want to know how they really feel about you.

  17. 30 year realtor says:

    #16 Splat- you already have

  18. Raymond Reddington formerly Phoenix says: says:

    Joyce,
    29 from yesterday,
    I apologize if you think I was putting words in your mouth. It appears, and I may be wrong, that you are just more accepting of the situation as it appears to be heading more than I am based on your quote, ” I understand you don’t want to take it on the chin. I don’t either, but someone will.”Instead of being someone’s punching bag for the next 20 years, I prefer we all take the gloves off now and take our chances. I have more respect for going down fighting which is why I detest the “kick the can down the road” mentality. It’s offensive to me.

    I am aware that there is little or nothing I can do about this except keep working, however, I will never be accepting as this will continue to devolve into something much worse (Splat and CMD are preparing for this now, along with myself and hopefully Funnelcloud).

    Splat is right on target with post 51. Very powerful, 100% accurate, just like being slowly poisoned to death. It is a very visceral pain.
    joyce (29)-

    The old “how do you boil a frog” joke…the “fix” will involve gradualism at its slowest, most insidious worst. Raise the temperature in the pot one degree at a time.

    “Their only solution until now is slowly raising taxes and slowly lowering payouts over time.”

  19. Raymond Reddington formerly Phoenix says: says:

    Libturd,
    Post 71 from yesterday.
    What you are witnessing is just scratches on the surface…

  20. joyce says:

    What was “sickening” from yesterday?

  21. joyce says:

    Raymond,
    I agree with your post today. The solution still remains clear to me that ending the program is the only thing that will stop the fraud. To recap, 1) it’ll never happen, and 2) if it did, multiple classes/groups of people will be screwed over in the transition, whatever form that may take. The only redeeming thing is that the future generations will be freed.

  22. 30 year realtor says:

    Joyce, comment #25 from yesterday would be a prime example

  23. Raymond Reddington formerly Phoenix says: says:

    24. Joyce,
    The only redeeming thing is that the future generations will be freed.

    At the rate the frog is being cooked, the future generations you are talking about will be flying on starships to other planets….

  24. 1987 Condo says:

    What about Clinton/DiBlasio yesterday with the whole “CP Time” joke.
    I worked in Newark for 10 years and never heard that uttered, in fact never heard the term till the news this morning..ugh

  25. D-FENS says:

    How would you rate comments 4 and 10 from yesterday?

    30 year realtor says:
    April 12, 2016 at 11:18 am
    Joyce, comment #25 from yesterday would be a prime example

  26. Raymond Reddington formerly Phoenix says: says:

    1987 Condo,
    GW time is where it’s at…

  27. ccb223 says:

    way off topic (sort of) but a lot of truth here by Charlie Munger.

    http://www.businessinsider.com/charlie-munger-warns-about-american-finance-2016-4

    But hey, you gotta keep dancing while the music is playing?!?!

  28. joyce says:

    28
    Raymond,

    The law needs to be updated to include any sexual relationship between a cop, sheriff, equivalent, prosecutor, judge and a person pulled over, under investigation, in a court order program, on parole, in jail/prison as statutory rape.

  29. joyce says:

    28 again

    “”” Sheriff Strada said, “Let me make this clear, ‘no officer is above the law,'” he said. “We will continue to hold our officers accountable for their actions, and we will continue to uphold the integrity of our organization. It is important for our county residents to understand that the actions of one officer should not speak for the other officers who put their lives on the line every day to protect the citizens of our county.” “””

    Oh christ, the b.s. lines they’ve been using for decades are wearing thin. Please note the fact that the sheriff said that line even though (from the very same article):

    “”” Last week, a Sussex County corrections officer — Kevin Cole, 42, of Andover — who was charged last year with conspiracy steroid possession was admitted into the pre-trial intervention program. “””

    (one of these days I’ll learn to use the HTML tags, looks pretty straightforward)

  30. nwnj3 says:

    Charlie Munger is a big part of the problem. He’s the epitome of crony capitalist. He’s lobbying for and exploiting tax loopholes and fast as he can, while gutting middle class jobs left-and-right.

    The sooner we can dispel the notion that he and Buffet are somehow patriotic or their advice should be heeded the better off we’ll all be. They are wolves in sheeps clothing and they’ve exploited the persona for a long time.

  31. Comrade Nom Deplume, Recovering From The Slopes says:

    [18] libturd

    I’m setting up a gluten free ETF. I expect Montclair to invest all of its pension funds in it

  32. 1987 Condo says:

    #34.. I have been following the markets since 1973 and investing since 1979…I don’t see that…what am I missing?

  33. yome says:

    The Bern gaining momentum. Outsiders vs Establishment is gaining traction

  34. Comrade Nom Deplume, Recovering From The Slopes says:

    Never let a crisis go to waste

    http://www.cnbc.com/2016/04/07/panama-papers-us-readies-rule-on-shell-companies.html

    What strikes me about this rule is that, like FATCA, it won’t really provide much usable information. In fact it will provide none. The true object is to further ring fence capital outflows from the US; to make foreign banks and advisors off limits to Americans.

  35. Comrade Nom Deplume, Recovering From The Slopes says:

    OT alert

    Here is a fascinating legal and tech issue. I don’t profess to be an expert but I understand the legal issues. What I don’t know well are the tech issues: how this tech will work and if it can be defeated. That in turn leads to more legal questions. It really is fascinating.

    http://www.cnbc.com/2016/04/12/textalyzer-hopes-to-stop-distracted-driving-in-ny.html

  36. chicagofinance says:

    Is that one of the big NYC corporate law firms?

    Splat Mofo says:
    April 11, 2016 at 8:21 pm
    Scadenfreude

  37. chicagofinance says:

    What about Elon Musk?

    nwnj3 says:
    April 12, 2016 at 1:06 pm
    Charlie Munger is a big part of the problem. He’s the epitome of crony capitalist. He’s lobbying for and exploiting tax loopholes and fast as he can, while gutting middle class jobs left-and-right.

    The sooner we can dispel the notion that he and Buffet are somehow patriotic or their advice should be heeded the better off we’ll all be. They are wolves in sheeps clothing and they’ve exploited the persona for a long time.

  38. The Great Pumpkin says:

    Wow, thanks for the share. Guy is saying exactly what I have been saying. Is he jealous of the billionaires? I think not. Is he out to get the rich? I think not. He knows what I know, that this concentration of wealth is not a good thing for the economy. That wall st is out of control.

    Where is rags? Rags, can you understand what this brilliant businessman understands? Anyone’s hero that is Ayn Rand is completely lost and out of their mind.

    “What really enabled Hitler to rise was the Great Depression. You put on top of the Weimar inflation the Great Depression, and people were just so demoralized that they were subject to being snookered by a guttersnipe like Adolf Hitler. So I think this stuff is deadly serious in that these crazy fools should never let people like Alan Greenspan – he’s an amiable man, but he’s an idiot – should not make the head of the Federal Reserve and governor of all banking; somebody whose hero is Ayn Rand, who believed in no government at all.”

    ccb223 says:
    April 12, 2016 at 12:45 pm
    way off topic (sort of) but a lot of truth here by Charlie Munger.

    http://www.businessinsider.com/charlie-munger-warns-about-american-finance-2016-4

    But hey, you gotta keep dancing while the music is playing?!?!

  39. The Great Pumpkin says:

    yup

    “The truth of the matter is that . . . Elizabeth Warren doesn’t agree with me on many subjects, and I wouldn’t agree with her on many subjects, but she is basically right when she says that American finance is out of control and that it isn’t good for the rest of us. Both Elizabeth Warren and Bernie Sanders are not two of my favorite people on earth, but they are absolutely right [about finance].”

  40. Not Ragnarian says:

    Who needs Mehicans? This is the future people.

    Go on a walk with “your” shrink. Make it work on your “warehouse”. Use it as the brunt of your sadistic tendencies.

    https://youtu.be/rVlhMGQgDkY

  41. D-FENS says:

    Bernie is a career politician. He is no outsider. You must be kidding.

    yome says:
    April 12, 2016 at 1:45 pm
    The Bern gaining momentum. Outsiders vs Establishment is gaining traction

  42. joyce says:

    39
    “According to the National Safety Council, car crash statistics spiked significantly this year and that is the first increase after 10 years of steady decline,” Deborah Becker, DORC’s co-founder, said in a statement. “Since drunk driving is down and today’s cars are built better than ever, the addition of mobile devices in our lives becomes the most likely reason for this sudden increase.”

    I guess cell phones went mainstream last year.

  43. nwnj3 says:

    He makes something other than paper.

    What about Elon Musk?

  44. Anon E. Moose says:

    Nom [39];

    Art imitates life. A decade or more ago Limbaugh had a parody about a do-gooder group called “Keep Our Own Kids Safe”, i.e., KOOKS, dedicated to stopping headers in soccer to prevent brain injury, IIRC.

    I have sympathy for the guy losing his teenage son in a car accident, thought I may or may not agree with his prescription. Regardless, who in their right mind that wants to be taken seriously names their group “DORC”?

  45. Anon E. Moose says:

    Nom [39];

    Art imitates life. A decade or more ago Limbaugh had a parody about a do-gooder group called “Keep Our Own Kids Safe”, i.e., KOOKS, dedicated to stopping headers in soccer to prevent brain injury, IIRC.

    I have sympathy for the guy losing his teenage son in a car accident, thought I may or may not agree with his advice. Regardless, who in their right mind that wants to be taken seriously names their group “DORC”?

  46. D-FENS says:

    I do so love to see mayor Fulop squirm in front of his angry constituents.

  47. D-FENS says:

    Christie Announces $200 Million Tax Break for NJ Employers

    Read more at Christie Announces $200 Million Tax Break for NJ Employers | New Jersey News, Politics, Opinion, and Analysis
    Follow us: @politickernj on Twitter | PolitickerNJ on Facebook

    http://politickernj.com/2016/04/christie-announces-200-million-tax-break-for-nj-employers/

  48. The Great Pumpkin says:

    Thanks for finding that. This guy is still trying to convince them that he is looking out for their best interest. The Rev did a great job of showing how unfair the system actually is. You have a property that sold for 5ook in 2012 paying the same taxes as a home that sold for under 200k. Definition of robbery.

    Anyone think there is any chance of eliminating property tax and replacing it with a higher tax on income, or some other tax? It’s impossible to have a fair property tax assessment. It’s all over the place and should not be used.

    D-FENS says:
    April 12, 2016 at 5:18 pm
    I do so love to see mayor Fulop squirm in front of his angry constituents.

  49. The Great Pumpkin says:

    52- Jesus, 100 million going to fraudsters overseas? Can’t make this sh!t up.

    “software that snares individuals from overseas trying to file fraudulent claims through the Internet. Use of the $1,600 software has saved the fund more than $100 million.

    Identity Proofing, which requires individuals filing claims to answer some simple questions to ensure the person filing the claim is who they claim to be. The program has saved the fund $8.1 million.

    County Incarceration, which checks individuals filing claims against county jail rosters to make certain they are not filing from a county jail cell. The initiative has saved the fund $3.8 million.

    Read more at Christie Announces $200 Million Tax Break for NJ Employers | New Jersey News, Politics, Opinion, and Analysis
    Follow us: @politickernj on Twitter | PolitickerNJ on Facebook”

  50. The Great Pumpkin says:

    No federal loan program to drive up prices and it’s privatized. So what’s the excuse, boys? Can’t blame the govt on this one. Can’t blame teacher salaries since these teachers are paid like 10 dollars an hour with no benefits. So why the cost?

    “Parents in New Jesey spend nearly as much on their infant care as they do on college tuition — and that’s if they have just one child.”

    http://patch.com/new-jersey/longvalley/daycare-almost-much-college-nj-study-finds

  51. The Great Pumpkin says:

    Tell’em, Bernie!

    “This is where we are, folks: Even when Wall Street executives admit to defrauding the American people, they get to negotiate additional tax breaks in their settlement. The illegal behavior of Wall Street destroyed our economy, yet none of these executives will ever be put in jail. Instead, they pay a fine that is a fraction of the bailout they got from American taxpayers, hand themselves bonus checks with our money and get tax credits when it’s time to settle.”

    http://mobile.nytimes.com/2016/04/12/business/dealbook/goldman-sachs-to-pay-5-1-billion-in-mortgage-settlement.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=second-column-region&region=top-news&WT.nav=top-news&_r=1&referer=http://www.sanders.senate.gov/newsroom/must-read/in-settlements-fine-print-goldman-may-save-1-billion

  52. The Great Pumpkin says:

    You know what is ironic. This guy is trying to clean up corruption, yet people complain that he is giving shit away for free. So they rather vote for candidates that give away free shit to the 1% as opposed to main st. Crazy

  53. Essex says:

    Interesting Story on NPR tonight. Seton Hall study says law enforcement is setting up a perimeter between Bloomfield and Newark…go figure.

  54. Fabius Maximus says:

    Here is a great example of why I love this process. You stumble across little gems like this. Cruz is going for his own Bronx Cheer.

    http://www.newyorker.com/news/amy-davidson/ted-cruz-meets-new-york-values

    In some districts, Kasich might pick up a delegate even if he is a distant second, which is why he could be seen eating anything he was offered on Arthur Avenue last week. But the system rewards two qualities that distinguish Cruz: a finely honed data operation and an uncanny ability to absorb humiliation. It might, on the face of it, seem like an amusing out-of-towner move for him to campaign in the South Bronx, as he also did last week. It is part of New York’s Fifteenth Congressional District, which, according to the Cook Political Report, is the most partisan Democratic district not only in the state but in the entire country.
    […]
    There are about five hundred and fifty thousand Democrats in the Bronx, and only about forty-eight thousand Republicans. When there are hardly any Republicans around, you don’t have to persuade many people to vote for you to win the Republican primary.
    There has been some redistricting since 2012, but Romney won what was then the Sixteenth District (like the Fifteenth, entirely in the Bronx) with a hundred and fifty-one out of two hundred and eighty-five Republican votes cast
    […]
    The Cruz campaign is, as it has shown in other states, capable of finding those people and knocking on their doors. This means that Cruz has a shot at winning a delegate, or even three, in the district that includes Yankee Stadium.

    Think about that, 3 DELEGATES FOR 151 VOTES!

  55. The Great Pumpkin says:

    Feel the corruption!

    Come on, when are we going to stop blaming economic systems for the flaws of human nature? Is social!sm to blame for North Korea’s problems or the corrupt leadership?

    How did China progress so quickly under social!sm? They are corrupt as hell, but not at the level of corruption you see in North Korea and Venezuela. We need to stop blaming economic systems for the flaws of human nature. Just like we need to stop blaming govts for the flaws of human nature.

    D-FENS says:
    April 12, 2016 at 7:38 pm
    Soc1@lism…feel the bern

    https://m.youtube.com/watch?feature=em-share_video_user&v=n4zNU6ciJM8

  56. Fabius Maximus says:

    #14 30 year

    Why are you surprised?
    This place always has been, and these days it’s turning into Trumpland.

  57. Comrade Nom Deplume and His Amazing Trick Back says:

    Anyone driving by a Verizon facility on their way to work may want to allow a little extra time tomorrow morning.

  58. Libturd questioning the gender of Hillary's Cankle fluid. says:

    This place is far from Trumpland.

  59. [64] Did this get any play in NJ? The media likes to call Trump a fear monger, but doesn’t this make the Boston Globe an explicit fear monger?

    http://gawker.com/the-boston-globe-made-a-joke-i-guess-1770144596

  60. Fabius Maximus says:

    #64 Lib

    You sure about that. We have some big cheerleaders in here.
    https://njrereport.com/index.php/2015/08/04/nj-2016-outlook/#comment-697642

  61. I’m surprised nobody has figured out Trump’s long con yet. Let me clue you in:

    1. Set himself up to win the most delegates, but fall *just* short of the majority.
    2. Chaotic convention where they choose .
    3. Trump then uses his media prowess to evangelize about how corrupt the GOP is, urging everyone to write in, not just his name for POTUS, but write in alternative votes for *every* GOP spot on the ballot.
    4. Democrats win not only POTUS (again it doesn’t matter who), but an ultra-majority of both houses of Congress.
    5. Just like the first two years of Obama, Dems prove that all they know how to do is splinter and accomplish nothing (good), except this time they can’t even blame the GOP because they lost most of their seats.
    6. Trump starts the GNP (Grand New Party) to nominate and elect supporters to Congress during the mid-term elections, easily beating minority GOP and ineffective ultra-majority Dems who have accomplished nothing(good) and now have no one to blame.
    7. Two years later Trump wins a landslide victory for GNP party.
    8. Gets his GNP majority congress to pass an amendment that removes term limits from office of POTUS.
    9. Additional amendment passed allowing POTUS to fire any congressman or senator if he/she is called to the boardroom.

  62. dammit it took my #2 as faulty html and cut it off. Should read:

    2. Chaotic convention where they finally nominate (it doesn’t matter a bit who).

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