Five US banks settle sub-prime action for $US25 billion
TONY EASTLEY: To the US now and a footnote to the GFC involving the financial pain and anguish endured by ordinary Americans caught up in the nation's banking crisis.
Five of the biggest banks in the US have agreed to a landmark settlement worth $25 billion following allegations they were involved in foreclosure abuses on homeowners.
Here’s North America correspondent Jill Colgan reports.
JILL COLGAN: The US president Barack Obama personally announced what is the largest joint state and federal financial settlement in the nation's history - claiming this to be the end of an era of recklessness and abuse by the banking industry.
BARACK OBAMA: America's biggest banks, banks that were rescued by taxpayer dollars, will be required to right these wrongs. These banks will put billions of dollars towards relief for families across the nation.
They will provide refinancing for borrowers that are stuck in high interest rate mortgages, they'll reduce loans for families who owe more on their homes than they are worth and they will deliver some measure of justice for families that have already been victims of abusive practices.
JILL COLGAN: The president had harsh words for the banks involved - Bank of America, Citigroup, JP Morgan Chase, Wells Fargo and Ally Financial - claiming their foreclosure and repossession practices unnecessarily forced many Americans from their homes.
BARACK OBAMA: It was wrong and it cost more than 4 million families their homes to foreclosure. Even worse, many companies that handled these foreclosures, didn't give people a fighting chance to hold on to their homes. In many cases, they didn't even verify that these foreclosures were actually legitimate.
Sub-Prime Personal Loans - News
JILL COLGAN: The US president Barack Obama personally announced what is the largest joint state and federal financial settlement in the nation's history - claiming this to be the end of an era of recklessness and abuse by the banking industry.
13 over SEC civil claims that they deceived their own investors about their funds' subprime mortgage exposure, causing losses of about $1.6 billion when the funds collapsed in July 2007. SEC commissioners were scheduled to vote on a proposed agreement
Sub-prime mortgages were made by banks because Barack Hussein's community organizing agenda made Washington make them. Remember ACORN? Remember the Community Reinvestment Act? They forced banks to make loans they knew would never be paid back!
The move would mark a stepped-up regulatory effort to hold Wall Street accountable for its sale of bonds linked to subprime mortgages in 2007 and 2008. At issue is whether the banks misrepresented the poor quality of loan pools they bundled and sold to
Elijah Cummings (D., Md.) said that Countrywide records obtained as part of a congressional investigation of its VIP loan program indicate that Mr. McKeon was given "a significant discount on his VIP loan as a direct result of personal intervention" by
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