Banks Who Settled $25B Say They Relieved More

In March of 2012, 5 U.S. banks provided settled for $25 billion in a U.S. court to relieve struggling homeowners. Since the end of September, they say they have helped relieve over $26 billion. The 5 banks include Bank of America, JPMorgan Chase, Wells Fargo, Ally Financial and Citigroup.

If we remember from 2008, Fannie Mae and Freddie Mac had a guaranteed debt of $5 trillion where China and other foreign countries were heavily invested in these U.S. enterprises. In fact, executives at Fannie Mae were "dismissed" as part of a conversion from the private sector back to government oversight and conservatorship. The dismissal came shortly after executives of Fannie Mae considered filing corporate bankruptcy, which might have precipitated a worldwide uproar as never seen and where both China and the U.S. might have become enemies on more than just the financial front.

With $5 trillion in guaranteed securities, $26 billion is half of a percent of the entire 2008 housing debacle. North Carolina banking commissioner, Joseph Smith, was appointed by the government to ensure that the banks complied with federal guidance. It appears that another corporation received just a slap on the wrist once again while the window of opportunity becomes narrower for the American.