Sad but true, I can speak from personal experience as a homeowner facing foreclosure. I was put in a 3 month trial mortgage modification plan and ended up making five trial payments on time more than as agreed only to have Chase Bank take my money, turn me down for a permanent loan modification, and immediately move to sell my home at auction. To date the bank has not gotten my home but I have been bloodied and bullied since July 2009. I now have a preliminary injunction in place and mounting legal bills. Now through Barofsky's book Bailout and related articles I have learned that my fears of being hoodwinked were founded in fact and not a figment of my imagination as Chase employees tried to make me believe. HAMP was an extension of "bank welfare", helping out the likes of Jamie Dimon and JPMorgan Chase Bank NA.
I am not alone in this Geithner grand scheme, this conspiracy between the Secretary of the US Treasury and the major banks. The costs to the American people are too great to measure but can be identified by suicides, homelessness, stress related health issues, destroyed lives/families/communities, poverty. It was not enough that the banks preyed on homeowners to feed their greed machine. The fixing of the LIBOR was not enough. Now we find that the man entrusted to protect the financial interests of the American people is an active participant and accomplice in this giant Ponzi scheme to steal our homes and sense of well-being. Geithner was "in bed" with the bankers all along.
Geithner's pillage and burn tactics are: Screw the American people! Screw homeowners! Screw children! Screw the taxpayers! And all of us be damned.
I call on President Obama to fire Timothy Geithner. Send him packing for his crimes against the American people. Better yet indict, try and convict this shister.
What others are saying:
"The Washington Post described a scene in a forthcoming book by Neil Barofsky, the former Special Inspector General of TARP, where Treasury Secretary Timothy Geithner delivered a string of F-bombs during a discussion about transparency. I’ve read the book, and while that’s an amusing diversion, it’s nowhere near the headline story.
"The important moment in the book for me comes conveniently after Barofsky recounts this FDL News item, one of my HAMP horror stories. Barofsky shows how HAMP’s faulty design led to all sorts of problems like this, with trapped borrowers, extended trial payments, no-doc modifications, and eventually unnecessary foreclosures. Barofsky mused that Treasury didn’t care about the suffering of borrowers under HAMP, and the issue came up in a meeting with the Treasury Secretary, which was also attended by Elizabeth Warren, then the head of the Congressional Oversight Panel, another TARP watchdog.
"Warren asked Geithner repeatedly about HAMP. After several evasions, Geithner said about the banks, “We estimate that they can handle ten million foreclosures, over time… this program will help foam the runway for them.”]
"This is a revelatory moment for Barofsky in the book, and should be for everyone reading. Geithner’s concern, first of all, was with how the banks would respond to the program, not how homeowners would respond to it. In fact, homeowners are quite besides the point. Regardless of their situation, they will be one of the 10 million foreclosures, in Geithner’s construction. His goal was merely to space out the foreclosures and give the banks time to earn their way back to health, mostly through the other parts of the bailout, that enabled them to earn profits.
"This is a classic “extend and pretend” scheme; banks can extend the time frame for their losses, and pretend they were financially strong in the meantime. We previously had evidence that Geithner and the Treasury Department thought this way. In August 2010, a Treasury official (which Barofsky outs in the book as Geithner) made basically the same defense of HAMP, that it would give time for the banks to absorb foreclosures rather than have them come on the market all at once. But that came as a defense of the program after the fact. This scene with Warren and Barofsky came in mid-2009, when the program was in its infancy. And it’s prospective, not retrospective. It’s not that Treasury came up with a justification after the performance of HAMP faltered. It’s that it was designed this way."Read more at:
Barofsky Book: Geithner Confirmed in 2009 That HAMP Was Designed for Banks to Spread Out Foreclosures | FDL News Desk
Bailout An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street by Neil Barofsky
Why the Obama Administration Will Hate Neil Barofsky's Book
Corporate power dictates government policy and prevents accountability. It's a crime syndicate, and we're the victims on so many levels. Here is a video on the Libor scandal with Matt Taibi and an interview with Chris Hedges by Bill Moyers that shows what we are up against.