Greedy politicians, seizing upon a golden opportunity to extract billions from the private economy (aka YOU!), announced a $25 billion settlement with four large banks. These banks were alleged to employ practices in their foreclosure departments that supposedly threw Mary and Pete out of their home despite being current on their mortgage payments. This was dubbed “robo-signing” and the government played this like a fiddle.
The Wall St Journal sums it up quite nicely:
“In other words, Washington is taking money from bank shareholders and investors in mortgage-backed securities, who will see the value of their holdings fall, and giving it to people who aren't paying their bills. Welcome to the "fairness" era.”