The Miami foreclosure defense lawyers at Jacobs Keeley have not been shy with criticism of the current presidential administration, in particular with regards to a failure to hold big banks and executives accountable for their central role in the foreclosure crisis. Unfortunately, it does not seem as if the new administration is going to take any more of a hard line on this kind of issue, despite repeated promises to “drain the swamp.”
One must look no further than the recent appointment of Steve Mnuchin, Wall Street financier, to the cabinet as Secretary of Treasury. Mnuchin is a career banker. He spent 17 years at Goldman Sachs, ultimately attaining the position of partner. He oversaw a privately-owned hedge fund and later was a top fundraiser for Republican president-elect Donald Trump. He also worked for a time at a California bank that NPR recently referred to as a “foreclosure machine” in the midst of the housing bust.
Essentially, Mnuchin and others were searching for ways to turn a profit from the ruins of the housing market. He and a group of other billionaire investors purchased IndyMac, a bank that took a nosedive after its risky mortgage loans turned sour. He and the others bought it with a promise to pay future losses above a certain threshold – which they did, and after six years, sold it as OneWest at a $1.5 billion profit for $3.4 billion. How did they do this? On the backs of suffering homeowners. Continue reading