How was the $110 Billion in bank fines spent?

Your guess is as good as the US Government’s!

Make sure you put on your big boy and big girl panties when you read this….

Major US banks paid about $110 Billion in fines over the mortgage banking crisis.

New York State spent some of their money on a new stable and horse barn at the state fair…

A mortgage firm in New Jersey received $8.5 million for reporting a bank’s bad conduct.

Large portion (about $50 Billion) of the fines stayed with the agency/organization levying the fines with limited disclosure where the money was spent.

The U.S. Treasury Department received about $49 Billion and there is no accountability where that money went.

The U.S. Justice Department collected about $450 Million and hasn’t disclosed any details about how that money has been spent. And by the way, there is a “Three Percent Fund” administered by the Justice Department. The fund is comprised of 3% of all civil fines or penalties collected by the department and yes – there is no accountability of funds.

Almost all US States received about $5 Million to spend as they saw fit.

The Federal Housing Finance Agency (FHFA) collected about $34 Billion, of which most went into the US Treasury which in turn $187 Billion helped bail out Fannie and Freddie, who subsequently were taken over (under receivership) by the Federal Government and all profits were also turned over to the US Treasury, with no accountability where those funds were spent (if any on housing related matters). And both Fannie and Freddie have been profitable since 2012 and have paid over $245 Billion in dividends to the US Treasury – and where have those funds been spent?

There has just been no disclosure as to where the fines went!

The U.S. Treasury has stated that the settlement money isn’t specifically tracked.

Source: WSJ, 3-10-2016, Page A1.

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