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.
GoToby.com 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. GoToby.com does not believe in coincidences.