A key step was taken yesterday in moving the country beyond the housing crisis, a crisis that triggered the worst recession in decades and whose lingering effects continue to hinder the nation’s nascent recovery. The deal, which brought together 49 state attorneys general and the Justice Department, was a large-scale compromise between states, the federal government, two political parties and the nation’s largest financial institutions. Given the number of players at the bargaining table, it’s no surprise that this isn’t a deal made in heaven. There are significant shortcomings, and critics have already offered legitimate reasons why the deal will not turn the housing market around or even serve justice to those parties that committed fraud and broke the law. At the same time, the settlement will offer real relief to homeowners across the country, and it lays the groundwork for sane regulation of servicer conduct.
This post was updated at 1:25pm It’s been a long slog, but government officials and representatives from major U.S. banks have come to terms on a settlement that would put an end to federal and state investigations into alleged foreclosure abuses by financial institutions.
Fortune’s Colin Barr has an interesting story (it’s almost a week old but I just discovered it via Jim Kim) about why Wells Fargo still hasn’t paid back the $25 billion it borrowed (under duress) from us taxpayers last year, even as Bank of America has and Citigroup hopes to. His main explanation is that, [...]
