"The government sued TBTF banks and the defendants agreed to settle with the government. Such government actions are taken to protect U.S. citizens from illegal conduct and to discourage bad behavior in the future. Any monetary recovery, thus, belongs to the people. It is a punishment, not a restitution.Thus, none of the bank settlement money will go to shareholders or other stakeholders (e.g., homeowners that lost all their equity in foreclosure) unless the Treasury decides to do so. "
YanksGhost,
1. Usually Fines and Penalties levied by Gov authorities go to Gov.
2. But if FHFA Conservatorship sued mortgage sellers to only benefit Gov without recovering losses/damages incurred by the FnF (as per contract agreements with mortgage sellers) then FHFA conservatorship has defrauded the conservatees or acted with malice negligence in its duties to conservatees. This exposes FHFA conservator (tax payers) or mortgage sellers to future law suits.
In this case, FHFA Conservator has acted not only with profound conflict of interest, but also with sure intent to harm conservatees and benefit mortgage sellers.
One can not understand how Judges have shown callous "see no evil, hear no evil, speak no evil" attitude so far. Both FHFA and Judiciary have lost credibility in the eyes of public.
Judge Willet's comments are worth mentioning here.
"But what the majority opinion finds convincing, I find confounding."
When even Judges express such profound doubts about majority opinions, what about plaintiffs and public?
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