The Top 12 Reasons Why The Nationwide Federal/State Mortgage Settlement Deal Stinks!

From Naked Capital blogger Yves Smith:

• As readers likely know by now, 49 of 50 states have agreed to join the so-called mortgage settlement, with Oklahoma the lone refusenik. Although the fine points are still being hammered out, various news outlets (New York Times, Financial Times, Wall Street Journal) have details, with Dave Dayen's overview at Firedoglake the best thus far.



• The Wall Street Journal is also reporting that the SEC is about to launch some securities litigation against major banks. Since the statue of limitations has already run out on securities filings more than five years old, this means they'll clip the banks for some of the very last (and dreckiest) deals they shoved out the door before the subprime market gave up the ghost.



• The various news services are touting this pact at the biggest multi-state settlement since the tobacco deal in 1998. While narrowly accurate, this deal is bush league by comparison even though the underlying abuses in both cases have had devastating consequences.

For more, including a list of the top twelve reasons why this deal stinks, see The Top 12 Reasons Why You Should Hate the Mortgage Settlement.

See also, Daily Finance: Why the Foreclosure Mess Settlement Proposal Can't Fix the Damage.