David Dayen@ddayen

1. Hey remember when DoJ blustered that Deutsche Bank was going to pay 14 BILLION DOLLARS for mortgage bond abuses & everyone freaked out?

Fri, Dec 23 2016 06:13:40

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812167410740363264

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:40

David Dayen@ddayen

2. Remember when this was going to lead to a BAILOUT of Deutsche and a run on the bank?

Fri, Dec 23 2016 06:13:40

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812167638570799106

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:40

David Dayen@ddayen

3. Remember when those who've seen the pathetic game DoJ has run for 8 years urged a little caution on that number?  http://www.thefiscaltimes.com/Columns/2016/10/04/Justice-Departments-Deutsche-Bank-Crackdown-More-PR-Punishment …

Fri, Dec 23 2016 06:13:40

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812167861586128897

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:40

David Dayen@ddayen

4. Well DoJ & Deutsche announced an agreement in principle tonight. It's $3.1 billion.  https://www.washingtonpost.com/business/economy/deutsche-bank-agrees-to-pay-72-billion-to-settle-mortgage-abuse-case/2016/12/22/d3eac2b4-c6ca-11e6-bf4b-2c064d32a4bf_story.html …

Fri, Dec 23 2016 06:13:41

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812168058487775232

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:41

David Dayen@ddayen

Don't get fooled by the headline $7.2 billion number. $4.1 billion is in "credits" for loan modifications. DEUTSCHE DOESN'T OWN THE LOANS.

Fri, Dec 23 2016 06:13:41

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812168346980356096

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:41

David Dayen@ddayen

6. It's great that someone who needs it might get a loan mod but Deutsche is paying over half this penalty with someone else's money.

Fri, Dec 23 2016 06:13:41

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812168581186101248

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:41

David Dayen@ddayen

7. Some (incl me) were concerned that Deutsche had no reason to comply with a settlement since their borrower Trump would soon be in the WH

Fri, Dec 23 2016 06:13:41

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812168889454862336

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:41

David Dayen@ddayen

8. But before you think this deal sucks b/c DoJ lost their leverage, understand this is the same crappy settlement they've done w/every bank

Fri, Dec 23 2016 06:13:42

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812169160616591364

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:42

David Dayen@ddayen

9. The worst part is that DoJ has changed norms (not just Trump) by turning these dumb settlements into a substitute for accountability.

Fri, Dec 23 2016 06:13:43

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812169927507312641

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:43

David Dayen@ddayen

10. You sprinkle a small fine w/"help for homeowners" (which doesn't reach them to the degree promised), hold a press conference & smile

Fri, Dec 23 2016 06:13:43

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812170227840524288

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:43

David Dayen@ddayen

11. BTW this was a case where investors were lied to about quality of mortgages in bonds. Do they see any restitution here? No.

Fri, Dec 23 2016 06:13:43

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812170541738008576

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:43

David Dayen@ddayen

12. I'm rather old-fashioned, I think the penalty for a crime should benefit its victims.

Fri, Dec 23 2016 06:13:43

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812170766355558401

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:43

David Dayen@ddayen

13. The Obama DoJ has transformed a law enforcement agency into a debt collector. It's a sad legacy.

Fri, Dec 23 2016 06:13:44

ReplyRetweetFavorite

https://twitter.com/ddayen/status/812171134611308544

— David Dayen (@ddayen)Fri, Dec 23 2016 06:13:44