New Orleans Now the Federal Housing Finance Agency has indicated that it will file suit against a gang of giant financial institutions for their sloppy work and lack of “due diligence” in assembling securitization pools of home mortgages. Their aim is to collect billions of dollars that were lost in this way by Fannie Mae and Freddie Mac to the tune of $30 billion or so and then covered by taxpayers of course. Private investors who held significant positions in mortgage securitization pools are also trying to pinch big banks to cover their losses.
It has already become abundantly clear that no one in the banking and financial services industry will be held criminally liable for the millions of homeowners who have faced foreclosure and the millions that have lost their jobs due to this crazed housing bubble. The money spent in the bailout, even if recovered, won’t be spent better to provide relief for homeowners or the unemployed, because the political polarization is so intense there is no doubt serious discussion among Tea-publicans about whether or not to sue American citizens for having wasted their own money by paying taxes.
The blame game just seems to go on and on while homeowners and the unemployed continue to receive inadequate aid. In fact indirectly some of the homeowners who were hustled into these toxic mortgages are blamed for having been lured by banks and brokers into loans. When they are called “liar’s loans” they are not referring to the bankers and brokers, but the homebuyers who had no idea their income was being misreported and the assurances were duplicitous.
The music keeps playing as the dance of denial goes on, but while communities shrivel and die, families and their futures continue uncertain and upended, the wicked get respite and court appearances, and there is still no relief in sight.