Are the Banks Getting Off Easy in AG Deal? Maybe So

Even as the banks and their conservative allies mount a fierce attack on the effort by state attorney generals to punish banks for their abusive foreclosure and modification practices, an entirely different critique of the proposed deal has emerged: It's not tough enough on the banks.

The critique that banks are being let off the hook has a few threads. One is that the terms -- which you can read below -- would give banks more ability to write off failed second mortgages or home equity loans as tax losses saving themselves billions. The second complaint about the deal is that it would probably protect the banks and mortgage servicers against future litigation, limiting their liability in ways that guarantee that they will never be held responsible for the full scope of their criminal or negligent actions.

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50 State Attorney General 27 Page Settlement on Fraud Closures