Many bankruptcy filings, tens of thousands, have been caused by the foreclosure fraud wrought on our country by the mortgage industry and their lapdog politicians.
I share the views and frustration of the Naked Capitalism blog on this:
It turns out we were not cynical enough. We recounted in a post last week in gory detail that the information that leaked out as the reviews were underway showed not only that the review process was every bit as corrupt as we expected. It was also, peculiarly, turning out to be (per the banks) very costly. We couldn’t fathom the latter (we discussed how implausible the hours claimed to have been spent per borrower file were). The only explanations we can fathom are 1. that the banks were doing a lot more than OCC file review (as in they were bundling in “file remediation” as in cleanup/document fabrication) and 2. people were being paid to do nothing (we’ve gotten reports from insiders that some high-skill temps were kept “on the beach” at the start of the process).
Read more at http://www.nakedcapitalism.com/2013/01/8-5-billion-foreclosure-fraud-settlement-yet-another-loss-for-homeowners-touted-as-a-victory.html#83bcALMeRYKdzKYW.99
People call me looking for a piece of the pie; I do not see how to get it. I blogged at the time how this was a setup for the fox to guard the henhouse. Foxes love to get into a chicken coop and kill all the chickens. They bury some to eat later.
The conclusion echoes my post on the government suing S & P for its ratings of mortgage securities from last week:
This is what passes for justice in America: the authorities are all too happy to paper over what any sensible person would consider to be criminal conduct.