Why Do Banksters Get Help but Not Homeowners?

20070509 CitibankThe Daily Take Team at The Thom Hartmann Program critiques the Citibank settlement at TruthOut:

It’s time to start helping the people, and stop helping Wall Street.

According to an agreement announced earlier today, big bank Citigroup will pay $7 billion to settle a Department of Justice investigation into that bank’s involvement with risky subprime mortgages.

The agreement stems from Citigroup’s role in the trading of subprime mortgage securities, which helped to cause the 2007 financial collapse and Great Recession.

Of the $7 billion total settlement, $4 billion will be in the form of a civil monetary payment to the Department of Justice, $500 million will go to state attorney’s general and the Federal Deposit Insurance Corporation, and an additional $2.5 billion will go towards “consumer relief.”

But make no mistake about it. This agreement is another win for the big banks.

Under the agreement, Citigroup will most likely get a $500 million tax write-off. And in pre-market trading on Monday, Citigroup stocks rose by nearly 4 percent, despite the $7 billion agreement.

This is nothing more than a slap on the wrist for Citigroup; basically a cost of doing business.

And as for the mere $2.5 billion in consumer relief, while it will be going towards loan modifications, principal reduction and refinancing for distressed homeowners, it’s nowhere near enough. And there are no guarantees it will make its way into the hands of the people Citigroup victimized, either.

If the Department of Justice was serious about holding Citigroup accountable for its actions, and helping the American people and economy recover from the Great Recession, then it would be taking a heck of a lot more than $7 billion, and giving that money directly to the American people.

It would be helping out American homeowners, instead of continuing to protect the big banks.

After all, it’s consumers buying things like houses who drive demand and grow the economy. Not the big banks on Wall Street…

[continues at at TruthOut]

majestic

Majestic is gadfly emeritus.

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  • Anarchy Pony

    Cuz that would be soshulizm, Duh!

  • BuzzCoastin

    Why Do Banksters Get Help but Not Homeowners?

    cause the banks own the gruberment
    and the homeowners work for the banks & duh gruberment
    would be my first guess

  • Simon Valentine

    so the 2.5 is going towards political ‘turmoil’ to create jobs on someone Else’s soil

    to lie to the present people and pay some of them to become the future people?

    “call the help desk” they said
    “they just got a grant”
    “they will help you be converted to the New Ways”
    “version 2.5”

    “those aren’t false pretenses, they’re just the same as the last time!”

    people don’t have solutions
    persons have ways
    and people who Believe

  • Chaos_Dynamics

    Ask Michael E. O’Neill, Charles O. Holliday, and Lloyd Blankfein.

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  • Anarchy Pony

    Mammon, I believe.

    • Oginikwe

      I was thinking more like Loki.