George Goehl Calls Expected $25 Billion Settlement of Robo-signing Scandal ‘a Paltry Down-payment on Justice for Homeowners’

Urges Obama-Schneiderman task force to require banks to pay at least $300 billion in final deal

Chicago, Illinois–(ENEWSPF)–February 2, 2012. Any day now, the details of the agreement between state Attorneys General and five big banks involved in the robo-signing scandal are expected to become public. George Goehl, Executive Director of National People’s Action, and a founding member of The New Bottom Line coalition, is a spokesperson whose leadership was essential in:

  • narrowing the scope of the deal and not releasing the banks from broader mortgage fraud claims and criminal prosecution; and
  • the ongoing push to organize homeowners to press the Obama Administration for a thorough investigation of all aspects of the big banks’ mortgage fraud and to make the banks and Fannie Mae/Freddie Mac provide $300 billion in principal reduction for underwater homeowners and restitution to foreclosed-on families. 

“If President Obama wants to run as a champion of the middle class, he can accept no less than $300 billion from the banks after a full investigation of their fraud at every step of the mortgage crisis. Anything less than $300 billion is a win for the one percent that lets the banks off too easily and falls short of helping both middle-class families and communities targeted most by big bank fraud,” said Goehl. 

$750 billion represents the true scope of the problem of negative equity. $336 billion would cover owner occupied, underwater mortgages serviced by the five big banks at the settlement table. This $336 billion would also require the holders of the majority of home mortgages in the country, namely Fannie Mae and Freddie Mac, to finally come to the table for American homeowners and the broader economy. 

Watch George Goehl on Dylan Ratigan’s program during massive protests at shareholder meetings (starting at 2:15 minute mark). The Nation Magazine recognized The New Bottom Line as “the most valuable coalition” of 2011 for its work on the mortgage settlement and Wall Street accountability. 

###

The New Bottom Line is a new and growing movement fueled by a coalition of community organizations, congregations, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, and dozens of state and local organizations from around the country.

Source: www.newbottomline.com