When There is an Election, Really Important and Even Fascinating Stories Get Put on the Back Burner

It’s not surprising that in the heat of an election, the mainstream media tends to put many important stories on the back burner. It can be, however, very disappointing. Recently, I was shocked to learn of a story that had developed over the last week that the media seems to have largely ignored. My boyfriend reads Rolling Stone magazine religiously and had read an article by their sharp Wall Street correspondent, Matt Taibbi, which reported on a settlement that would soon be reached between some of America’s largest banks and state attorneys general concerning allegations of massive foreclosure fraud.

I read the New York Times rather religiously and obsessive compulsively listen to National Public Radio and had not heard a thing about this.

After doing some research, I found that this story has not been covered by many other journalists. A website called “Business Insider” had a short article about it, as did Zach Carter and Sam Stein over at the Huffington Post. Taibbi did a short interview on Current about it as well. Unfortunately, these reports left me with little information about the issue at hand. To learn more about foreclosure fraud I had to peruse some pretty boring attorney websites. (Come on journalists, this is where you come in to do the leg work?)

So remember when the economy collapsed and no one went to jail? There are some major Wall Street Banking tycoons who could now potentially face jail time for the fraudulent practice of “robo-signing”. In 2010 a lot of banks like JP Morgan Chase, Bank of America, and Wells Fargo suspended foreclosures in 23 states because the paperwork these banks had submitted to the courts for foreclosure had not in fact been filed properly. And by that, I mean they had been forging signatures of those homeowners whose houses they were foreclosing. This is where “robo-signing” comes in – it is a “robotic” process of mass producing false and forged mortgage assignments and any legal documents related to mortgage foreclosures created by people who have not verified any of the information they are signing off on. Back in July of 2011 (when the media was, you know, actually reporting on this) the associated press explained that robo-signing could mean anything from “a qualified executive in the mortgage industry signs a mortgage affidavit document without verifying the information” or “someone forges an executive's signature, or a lower-level employee signs his or her own name with a fake title. It can mean failing to comply with notary procedures. In all of these cases, robo-signing involves people signing documents and swearing to their accuracy without verifying any of the information."

The consequences of this were obviously dire. Millions of people lost their homes before the banks halted foreclosure actions. As if that isn’t scandalous enough, in Novemer of 2011, the whistleblower who caused the first major robo-signing indictments was found dead in her home in Nevada during the court proceedings.

A story this filled with intrigue and corruption would be too good for the media to pass on, right?

I also find it peculiar that the press has ignored the fact that a settlement has been reached that includes $25 billion dollars to be distributed amongst homeowners who experienced premature foreclosure. (A classic story of justice being served!) Or that instead of a “back room bailout”, President Obama is leaving these banks high and dry to be responsible for a laundry list of other liabilities. (Bankers in rolodexes cowering under their ikea desks!) Or even how state attorney generals Eric Schneiderman (from New York) and Kamala Harris (from California) played hard ball and refused to sign deals with the banks for months, holding out for better offers. (Politicians we can believe in!) Can no one see the headlines?

Perhaps media outlets haven’t considered this: In his State of the Union Speech, Barack Obama noted the creation of a Mortgage Investigation Committee that would be chaired by Schiederrman. If President Obama and his super bank-busting dream team can take down these banks, make them responsible to the American people, and put money back in the hands of the millions of wronged Americans, don’t you think that’s make for a strong bullet point in the campaign trail? Isn’t that something worth chewing the fat over and analyzing during the 24 hour news circuit?

Most importantly, when the media ignores stories like this, they let banks get away with their behavior. This, more than anything, is unacceptable.