government pushing back on financial industry?

Posted on September 1, 2011

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U.S. Said to Be Ready to Sue Banks Over Mortgages – NYTimes.com. There’s a lot to this article, but i found this part particularly interesting:

Besides the angry investors, 50 state attorneys general are in the final stages of negotiating a settlement to address abuses by the largest mortgage servicers, including Bank of America, JPMorgan and Citigroup. The attorneys general, as well as federal officials, are pressing the banks to pay at least $20 billion in that case, with much of the money earmarked to reduce mortgages of homeowners facing foreclosure.

well.. yay for the semblance of accountability. Does it do anything to help all the people who already lost their homes?  Will it do anything to make sure it won’t happen again? Oh, and then what’s this…

Bank officials also counter that further legal attacks on them will only delay the recovery in the housing market, which remains moribund, hurting the broader economy. Other experts warned that a series of adverse settlements costing the banks billions raises other risks, even if suits have legal merit.

so.. even though illegal things may have been happening, punishing the perpetrators will be worse for everyone in the long run. So why aren’t we discussing whether or not a system(capitalism – at least american style) that allows one sector(the financial industry) to have this much power – that to punish them would cause more damage – is one we want to perpetuate.  Also, what kind of a “justice” system do we have if it doesn’t work on the large scale – can we take that back a step and realize the “Justice” system doesn’t work on any level?  We call it “Justice” but that’s because we get stuck in familiarity and don’t question what that word means and what happens in the legal and criminal justice worlds.  and why does this feel like smoke and mirrors?  Also, where is the public’s say in all of this?  We have a major financial meltdown, people are still suffering, and yet we watch this downhill battle go back and forth between those at the top.  Should a democratic country have the will of others imposed upon us without our say?  I understand that the financial sector is “private” and that’s why some people don’t want the government putting regulations in place… but how “private” can it be when it literally affects everyone?  When a government is supposed to represent the people, and the people are being shat on by huge corporations like Bank of America, shouldn’t we have a say – and not just in the mortgage department, what about the other shiesty practices? Of course our government doesn’t represent us and all of this is just in theory.. but i’m just sayin.. things to ponder.

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