Obama Is on the Brink of a Mortgage Settlement With the Big Banks—and Progressives Are Furious

[bhikkhu]

11. Note that it is "civil immunity" not "criminal immunity"

...back when all this debate started, when Schneiderman was looking like backing NY out of the agreement, the big worry was that the administration would tie the AG's hands by giving criminal immunity. Of course, the president assured that that's not what they were going to do, but (as per usual) there was no end to angst and fear that he'd give in to the bank's lobby.

So he didn't give an inch, apparently - no criminal immunity was granted, the $20 billion fine of summer has become $25 billion, and the AG's are free as they have always been to prosecute to their heart's content (which hasn't been very much). Yet there is no end to griping anyway.

The technical issues of robo-signing were very suited to a civil penalty, and the amount - as tiny as people like to say it is - is one of the largest fines ever levied, and it will do a great deal of good. Of course, if the banks had a shot at keeping that 25 billion - say, by stirring the pot about how it was a big waste, how a better agreement might be had, how Obama had sold everybody out - and by filling the pockets of whatever repug was running for office against him...then they might be completely off the hook in a year's time, with few worries at all. It makes me wonder who might be paying for all the big press of news griping about "Obama's bad deal".