Taibbi: $26 billion foreclosure fraud settlement doesn’t cut it
On Thursday night’s edition of Current TV’s Countdown with Keith Olbermann, guest host Sam Seder welcomed Rolling Stone writer Matt Taibbi, who has written extensively about the financial crisis and the role that banks have played in our nation’s economic downturn.
Seder asked Taibbi why his opinion has changed over the last few weeks about the $26 billion settlement to be paid out to victims of “robo-signing” and other forms of foreclosure fraud. On his blog, Taibbi initially supported the settlement, but has recently spoken out against it.
Taibbi explained that the deal arouses concerns for him that the banks were too anxious to settle. He believes that as more of their practices come to light, it will become clear that some banks would be completely put out of business if they were truly forced to answer for their crimes. The magnitude of the reparations necessary would strip the companies of their assets.
The amounts paid out to victims of foreclosure fraud are too paltry as well, he said, and there’s no assurance that the banks will pay them. Families who lost their homes are being offered a financial “kewpie doll” in return, which won’t be enough “to stem the tide or turn the tables for these people.”
Watch the clip, embedded via Current TV, below: