Bank of America Is Costing Us All Money
Bank of America will pay $8.5 billion to settle with bond investors. One of those bond investors would include Pimco in Newport Beach. When Bank of America purchased the mortgage giant Countrywide they also got their grief. They had allegedly tricked the bond investors into purchasing mortgage securities by falsely stating the quality of the home loans that were resold.
It was argued that Countrywide enriched itself at the expense of the investors by continuing to service bad loans. If you note the small banks are closing and do not get Federal bailouts. Bank of America get a large bailout and favoriable allowances so that they could make great profit to settle this kind of a claim.
The homeowner gets hit many times by this behavior on such dealings. The consumer is hit because the large banks and the Federal Government will not help them with the same bad loan problems in loan modifications. The moneies coming from tax payers go directly to large banks like Bank of America. The very tax payers that are losing their homes get nothing and the banks, who pulled off the greatest heist in history, get the government to help them our of the crisis they caused. The cost of the bail out is passed on to the common citizen. The banks do not want to do loan modifications so few are ever done and raise fees and once again hurt the citizen.
I could easily go into the rules the government made to allow the banks or even force banks to lend to unqualified buyers but I will not at this time. The new requlation on banks are the very cause of higher costs to the customers. That is not the kind of help people thought they were getting. I believe this is a riged game. It is neither right or left politics it is Government and Big Banks vs the citizen. That is not a fair fight.
As we the citizens are seeing the economy go into the toilet we watch government its employee's and the large (selected by the government) banks making a killing. It is not big oil nor is it the wealthy that is causing this problem.
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