Courtesy of Karl Denninger, The Market Ticker
Say it isn't so! A big bank would never screw the public, would it?
(Reuters) – Bank of America NA prevented homeowners from receiving mortgage-loan modifications under a federal program in order to avoid millions of dollars in losses while benefitting from financial incentives for participating in the program, according to a complaint unsealed in federal court Wednesday.
The suit alleges that Bank of America intentionally "lost" documents of people filing for HAMP modifications, failed to credit payments (so as to deny someone a modification by claiming they "redefaulted") and misled homeowners about elegibility.
At the same time the bank allegedly managed to obtain payment from Treasury for "complience" with HAMP, and let through enough modifications to avoid heavy scrutiny for its obstruction.
Can someone tell me once again why the American people don't rise and demand that these institutions be closed and broken up, with their executives being permanently barred from holding a position with any publicly-traded firm and, for those who were personally involved in such acts, prosecuted?
And remember, according to President Obama, Mitt(ens) Romney and "Republican-cum-Libertarian" Gary Johnson, nobody committed any crimes.
