The Obama administration is crowing over an agreement that will force the Bank of America to pay nearly $17 billion to end lawsuits related to deficient home loans and mortgage-backed securities sold prior to the 2008 financial crisis (“Bank of America reaches $17B settlement with U.S.,” Web, Aug. 20).
The agreement includes $9.65 billion in cash paid out to federal and state agencies and nearly $7 billion in consumer relief to borrowers hurt by the mortgage crisis. Unfortunately the agreement does not include criminal charges for specific bank employees who defrauded borrowers, investors and the government.
The American people need and deserve an intelligent, truthful rendering of all the facts involved so as to exact justice and prevent recurrence. Bottom line: President Obama and Democratic Party anti-business zealots must answer the following question: What about Fannie Mae and Freddie Mac? Tim Pagliara, head of shareholders group Investors Unite, put the issue in proper perspective when he said, “Investors deserve to know when the U.S. Treasury knew that Fannie and Freddie would become profitable and how that factored into the decision-making process.”
After all, “theft is not privileged.” Let’s keep it that way.
JOHN W. LILLPOP
San Jose, Calif.