Friday, November 1, 2013

Litigation Reserves, GSE Settlements, And, We The People

Many banks are making settlements with the GSE's for crappy loans sold to them in the 2ndary market a few years back. B of A is still struggling with one of the biggest likely settlements due to those sub par loans sold by Countrywide.

This brings to the head of how much these large banking institutions must keep in their litigation reserves to be able to make these payoffs.

It also makes me aware, and now you, of how little they are actually paying back, to the tune of 12, maybe 14% of the original loan amount, is what I read this morning.

So, yeah, they are being penalized and the GSE's are getting some reimbursement. But, as I've said before, the people, as in We The People, are paying for it all in the long run anyways.

Yes, I don't want the large banking institutions to get away with what they thought they got away with. True, but it all trickles down to you, me, and the infamous lamppost who pays for their poor behavior in the past. 

Okay, I'll get off my soap box now.......

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