In the cases of healthcare and underwater mortgages, the administration shied away from direct government aid. Instead, it subsidized private companies to serve the people. To get your government-subsidized mortgage modification, you applied at your bank; to get your government-mandated health coverage, you buy private insurance.
Low-income D.C. residents—many of them retirees—have been losing their homes under a program in which tax rights are sold to private investors who add mind-boggling fees and then foreclose when they aren’t paid. And it’s all legal.
Bank of America employees regularly lied to homeowners seeking loan modifications, denied their applications for made-up reasons, and were rewarded for sending homeowners to foreclosure, according to sworn statements by former bank employees.
This month we learned that regulators will not reveal any shenanigans discovered by the highly paid “independent” consultants big banks hired under orders from the government to review potential wrongdoing on their part in the foreclosure/robo-signing scandal.
Robert Greenwald’s filmmaking team has zeroed in on the ongoing mortgage crisis in this clip illustrating the stark contrast between the fate of Wall Street bankers and that of struggling homeowners after the initial bailout money was doled out—without any requirements that those who benefited the most account for the funds or be accountable to people trying to save their homes.