Fungible settlement
by digby
Already, three states have announced plans to divert some of their share of the $26 billion foreclosure fraud settlement with the nation’s five biggest banks away from helping homeowners (which is the money’s intended purpose), and towards other parts of their respective budgets. Wisconsin and Missouri are planning to use the money to plug budget holes, while Ohio wants to use the funding to demolish vacant homes.
And those states are evidently not the only ones planning to use the settlement funds for something other than helping troubled homeowners.
Personally, I think they should use the money to give some “tax relief” to millionaires. I can’t imagine why that wasn’t explicitly set forth as a requirement in the settlement negotiations. If we don’t reward the producers, where will we be?
Seriously, is it even possible that they would do this settlement without requiring that the states spend the money to help homeowners? Whaaa???
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