Robosigning Is Now History - US Announces $26 Billion Foreclosure Settlement

As reported yesterday [4], the cost of terminal abrogation of contractual rights in the US is, drumroll, $26 billion. Bloomberg notes:

•$26 BILLION FORECLOSURE SETTLEMENT ANNOUNCED IN WASHINGTON
•FORECLOSURE ACCORD RESOLVES 16-MONTH ROBO-SIGNING INVESTIGATION
•FORECLOSURE ACCORD IS SUBJECT TO APPROVAL BY FEDERAL JUDGE
•FORECLOSURE DEAL PRESERVES U.S., STATE RIGHTS TO OTHER CLAIMS
•FORECLOSURE ACCORD COULD CLIMB TO $40 BLN IF 14 SERVICERS JOIN
And a whole lot of corner offices for America's Attorneys General. As for what the market thinks of this "severe" settlement: BAC +1.2%, WFC +0.6%, JPM +0.4%, C -0.1%. For those who don't understand what just happened, US banks just funded Obama's re-election campaign to the tune of $26-$40 billion.

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