Monday, April 18, 2016
Bank of America $17 Billion Payment to Investors
This is going to be a short post, just something to think about. The banks have been fined billions by the government; but, just about all of that money went to pay off investors who bought mortgage backed securities. The banks gave out loans for more than they were worth and sold the loans. Now they are being forced to pay back the investors; but, the property owners get almost nothing. The gamblers get paid and the people who were duped into outrageous debt get nothing. Why didn't the property owners get paid first or at all? Because you don't matter, the same reason nobody went to jail for fraud in the banking industry or for fixing markets. They pay fines; but, not to the consumers, not to you and I. Oh, and their fines are tax deductible, if you steal someone's purse or rob their home, do you get to deduct court fines from your taxes. I bet not.