Fraud at Bank of America, Fraud at TARP

[cyu]

http://www.commondreams.org/headline/2012/03/08-2

Bank of America defrauded the federal Home Affordable Modification Program (HAMP), designed to help homeowners facing foreclosure, by preventing "scores of eligible homeowners" from receiving loan modifications

BofA and its loan servicing subsidiary implement "business practices designed to intentionally prevent scores of eligible homeowners from becoming eligible or staying eligible for permanent HAMP modification."

The bank and its agents routinely pretended to have lost homeowners' documents, failed to credit payments during trial modifications and intentionally misled homeowners about their eligibility for the program

BoA let through just enough HAMP modifications to avert suspicion and allay congressional critics

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http://www.nakedcapitalism.com/2012/03/gao-almost-half-of-bailed-banks-repaid-the-government-with-money-from-other-federal-programs.html

341 institutions had exited CPP, almost half by repaying CPP with funds from other federal programs.

The talking point that the Troubled Asset Relief Program made money for the taxpayer is an important structural argument for the Treasury Department and political elements in the Obama White House.

Officials can claim that TARP made money, but it’s becoming increasingly clear that this is a way of avoiding a description of the actual policy framework.

[cyu]

http://www.rollingstone.com/politics/news/bank-of-america-too-crooked-to-fail-20120314

It's been four years since the government, in the name of preventing a depression, saved this megabank from ruin by pumping $45 billion of taxpayer money into its arm. Since then, the Obama administration has looked the other way as the bank committed an astonishing variety of crimes – some elaborate and brilliant in their conception, some so crude that they'd be beneath your average street thug. Bank of America has systematically ripped off almost everyone with whom it has a significant business relationship, cheating investors, insurers, depositors, homeowners, shareholders, pensioners and taxpayers.

Bank of America's share price has plunged into the single digits, and the bank faces battles in courtrooms all over America to avoid paying back the hundreds of billions it stole from everyone in sight. Its credit rating, already downgraded to a few rungs above junk status, could plummet with the next bad analyst report, causing a frenzied rush to the exits by creditors, investors and stockholders – an institutional run on the bank.

They're in deep trouble, but they won't die, because our current president, like the last one, apparently believes it's better to project a false image of financial soundness than to allow one of our oligarchic banks to collapse under the weight of its own corruption. in February, the Justice Department's so-called foreclosure settlement, actually rewarded the bank with a legal waiver that will allow it to escape untold billions in lawsuits. And this month the bank will once again be permitted to perpetuate its fiction of solvency by grossly overrating the mountains of toxic loans on its books. the rescue effort is so sweeping and elaborate that it goes far beyond simply gouging the tax dollars of millions of struggling families, it's making the government full-blown accomplices to fraud.

[TheGodlessUtopian]

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