J.P. Morgan Chase
$26 billion settlement for distressed homeownersPosted by RJ and Makay on Feb 09, 2012 |
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Five of the nation’s largest banks, along with state and federal authorities, have agreed to a $26 billion settlement over foreclosure practices that could provide relief to nearly two million current and former homeowners hurt by the bursting of the housing bubble, state and federal officials said. The settlement is aimed at remedying the nation’s housing market slide and holding banks accountable for foreclosure abuses.
Banks around the world may slash an additional 100,000 jobs this year, according to Meredith Whitney, chief executive officer of Meredith Whitney Advisory Group LLC. Whitney shared her views yesterday with radio hosts Tom Keene and Ken Prewitt on the Bloomberg Surveillance show. Worldwide, banks lost well over 200,000 jobs in 2011, and this year “stands more of a chance to be a repeat” of 2011, she said.
This past Friday, the Federal Housing Finance Agency (FHFA) filed lawsuits against 17 of the world’s largest financial institutions, claiming that they sold $196 billion of risky home loans to Fannie Mae and Freddie Mac, during a four-year span, without adequately disclosing the risks. The move by the top federal housing regulator is the most sweeping action to date since the mortgage meltdown of 2008 that imperiled the nation’s financial system and led to a deep recession.
