Where's the relief for homeowners?? Our response to BofA's $8.5 billion settlement with investors
6/30/11
Reports are coming in that Bank of America has reached an $8.5 billion settlement with a group of investors who had purchased what they thought were AAA grade investments, but were actually near worthless mortgage-backed securities. This proposed settlement proves yet again that Wall Street banks knowingly made and sold millions of loans that they knew would fail in the interest of serving their own bottom line.While this is big news for Bank of America and the wealthy investors involved, it brings no relief for homeowners and communities, who are still suffering from the economic mess that Bank of America and other Wall Street banks created.
Investors deserve compensation for the damage caused by the big financial institutions, which ignited the economic crisis by using the homes of millions of American families as Wall Street gambling chips. Yet the worst pain is still being felt by families who continue to lose their homes in this fraudulent system and many more who continue to see their housing values plummet. Entire communities are being hit-hard by foreclosures, unemployment, and economic stagnation caused by Wall Street banks’ crashing the economy. Where is their compensation?
The housing market is at the center of our economy – and it won’t recover until the big banks are held accountable for the devastation they’ve wrought to the whole nation, not just investors. Families are looking to bank regulators and prosecutors to take action. In particular, they are calling on the state Attorneys General from all 50 states to demand a strong settlement from the banks, including measures to stabilize the housing market and keep families in their homes.
A strong settlement will:
- Provide fair, affordable and permanent loan modifications for all responsible homeowners.
- Restore fairness to the housing market by charging homeowners what their house is really worth, not the inflated figures bankers invented to make record profits.
- Halt banks from seizing homes without investigating all other options, including loan modification and opportunities to appeal any loan denial.
- Provide full financial restitution for homeowners that have been forced from their home due to fraudulent and criminal behavior.
- Push for criminal penalties against bankers and servicers who broke the law.
This piece was written in collaboration with the New Bottom Line campaign - organized by a coalition of community, faith-based and labor organizing groups including National People’s Action, PICO National Network, Alliance for a Just Society, Alliance of Californians for Community Empowerment, Industrial Areas Foundation Southeast and more than 30 local, state and regional groups from around the country.
