The Spark

the Voice of
The Communist League of Revolutionary Workers–Internationalist

“The emancipation of the working class will only be achieved by the working class itself.”
— Karl Marx

Grand Theft Mortgage:
Banks Steal, Deal, Walk Away

Jan 21, 2013

The banks have cut another deal with the government to escape their responsibilities for the mortgage crisis of 2008; a crisis that resulted in lost homes and/or bankruptcies for 4.4 million U.S. homeowners.

The deal, announced January 7, was spun to the public as if the government had extracted a huge pile of money from the banks, $8.5 billion, to help compensate victims of the mortgage fiasco of 2008. It was a bunch of lies and flim-flam! Only $3.3 billion is for “direct payment to eligible borrowers.” Divide the 3.3 billion dollars by the 3.8 million homeowners eligible for help, and it comes to a whopping $868 each. A great help when you owe a $150,000 mortgage on a home now valued at $50,000 or less!

The 10 banks protected by the deal can now stop reviewing their mountains of robo-signed and “ninja” loans (no income, no job) and consider all cases closed. The victims have no more legal claims, even though they were led to believe–one year ago–that the government would force the banks to compensate them for their losses.

The banks are also expected to write off the entire cost as a “business expense.”

If you’re a big bank, you don’t need to worry about defrauding millions of people. You have an entire government working day and night to protect you. But if you are one of the millions, it’s a different story, isn’t it?