Citibank

States, Obama Shake Down Banks in $25 Billion Mortgage Settlement

Submitted by Carl Horowitz on Mon, 02/20/2012 - 15:35

Foreclosed propertyIt took about 500 days of negotiation. But on Thursday, February 9, attorneys general representing nearly all 50 states made the announcement: Five banks will pay a combined $25 billion over three years in civil penalties and loan write-downs for having serviced mortgage foreclosure paperwork over the previous four years without proper review. The settlement, say supporters, will compensate homeowners for prior predatory lending practices, reform the banking industry and give the economy a boost. But the context of the case suggests an ulterior motive: socializing the housing market. This by no means is the first such attempt during the Obama years. And the true cost of this shakedown, the largest of its kind since the 1998 tobacco industry settlement, may be far higher than $25 billion.

Taxpayer-Owned Citigroup Still Bankrolling ACORN

Submitted by Peter Flaherty on Sun, 09/27/2009 - 18:59

Citigroup logoNow that taxpayers are Citigroup’s biggest shareholder, owning 36% of common stock, it is time for the company and its foundation to end its relationship with ACORN and its affiliates.

Citigroup has received $45 billion in taxpayer TARP funds. In addition, taxpayers are on the hook for the lion’s share of losses on the company’s $335 billion loan portfolio.

According to the 2008 annual tax return of the Citi Foundation, it provided the ACORN Institute, Inc. with grants of $500,000 for each of the years 2006, 2007 and 2008, for a total of $1.5 million.

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