The banks played a major role in the collapse of the housing market AND the collapse of the US economy. One of the best explanations of it is here.
Stated simply, banks loaned money to people they knew could not pay it back. They also created mechanisms for people to make vast amounts of money on the bad loans, knowing the people would default. It was basically a pyramid scheme invented by and that benefited extremely wealthy and powerful people. Meanwhile the rest of us suffer immensely.
The Obama Administration pledged to go after them and hold them accountable. And the FIRST agreement has been reached. Large banks will pay $26 billion to help homeowners right bad mortgages and keep their homes.
States are free to sue for more, and the federal investigation can still produce arrests, convictions, and incarcerations. The story made the front page of CNN:
FULL STORY | WHAT IT MEANS FOR YOU | NEW RULES FOR BANKS
On Fox, it is here:
Feds announce $25B settlement for foreclosure abuse, victims to receive only $2G
No picture, no celebration.
Notice both headlines. Notice the different highlights in the two stories. What explains the difference?