The more we learn about the foreclosure settlement, the more we see how much of a gift to the major banks this agreement really was. First, they no longer have to deal with any liability for their foreclosure practices. Second, they are allowed to credit their losses on short sales against the settlement payments, so they won't actually have to pay any cash. And now today we find out they managed to get the administration to agree to allow them to steal from investors with first liens on properties where the banks have second mortgages. It's outrageous. I don't think it's legal. But banks managed to get this perk as part of the settlement.
Bank of America Corp. (BAC), Wells[READ MORE]