Commentary: Why Florida Gets $0 Cash from $16.65 Billion Bank of America Mortgage Abuse Settlement

Other hard hit states, Nevada, Arizona and Michigan, are also left out while huge cash payments go to New York, Massachusetts, Illinois, California and Delaware; all solidly blue states.

Palm Coast, FL – August 21, 2014 – Florida will not be at the table when the $9.65 billion cash portion of Bank of America’s mortgage abuse settlement is doled out. Neither will Nevada, Michigan or Arizona. Like Florida, they were hard hit by the housing meltdown. But New York, Massachusetts, Illinois, California and Delaware will each be served up huge helpings from the settlement pie.

Today’s press release from Florida Attorney General, Pam Bondi’s office touts $1 billion from the settlement, earmarked for relief to Floridians for first and second lien principal reductions, loan forgiveness and other relief. But these are non-cash contributions, not part of the $9.65 billion cash shared by other states, the Justice Department and federal agencies.

An article today in The Street titled “$16.65B Bank of America Settlement Will Settle Nothing,” claims that Bondi and other states’ Attorneys General did not participate actively in the investigation and settlement negotiations related to the B of A settlement or in the JPMorgan and Citigroup settlement agreements that preceded it. The Street makes it sound like they just didn’t try hard enough. believes that politics had more to do with the outcome. Winning states New York, Massachusetts, Illinois, California and Delaware are solidly blue states. Among the losing states, Nevada and Arizona are solidly red while both Florida and Michigan have Republican governors. does not believe in coincidences.

3 replies
  1. Gary White
    Gary White says:

    You get what you vote for!

    Money not going to the Red states have to do with philosophy. Republican’s believe in unregulated free markets only and Gov’t should not get involved.

    Thus the reason why the Red State Republican didn’t sit in. Floridan’s voted for Scott a Republican. And got exactly that.

    Two examples of Scott not taking money from the FED Gov’t:
    – expanding medicare
    – high speed rail

    Sure he gave reasons to justify his position but there excuses. It comes down to the basic philosophy of free markets and Gov’t oversight. The question to ask is: “If it were up to Rick Scott would he have penalized the banks whatsoever?”

    His decision not to sit in on the negotiations answers the question.

  2. Karen E Joyce
    Karen E Joyce says:

    Where is the evidencednakobu

    This an interesting story based solely on your interpretation.
    The conclusion that you have drawn comes from nothing but supposition and your interpretation of a few disparate facts.

    I am surprised you would make such sweeping statements based on flimsy evidence.

  3. Toby
    Toby says:

    Reply to Karen

    When I label something as Commentary, it is just that. It expressed my opinion. I can see that you disagree with me. That’s fine. I welcome opposing views. But my opinion was based of researching several articles on the subject. My conclusions were not sweeping, nor were they based on flimsy evidence. They were, and remain, my opinions. Thank you for expressing yours.

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply