Settlements A Source For Civil Gideon?
The idea of providing the civil-court version of “if you cannot afford one, a lawyer will be appointed without charge” – aka “Gideon” – usually runs into funding questions. But what about all these hundreds of millions of settlement funds being collected by the government over shady mortgage practices? There is certainly a connection since much of the need involves housing and foreclosures.
The most recent was this week’s $968 million settlement with SunTrust, which the New York Times notes”… pales next to the multibillion-dollar pacts that the government has signed — or is seeking to sign — with the nation’s largest banks. But the SunTrust deal, announced on Tuesday, shows how state and federal authorities have been targeting banks beyond Wall Street.”
No kidding. The NYT also reports that “… the Justice Department is seeking a $10 billion penalty from Citigroup over its sale of defective mortgage investments, said people briefed on the matter, who spoke on the condition of anonymity because the talks are incomplete.”
Read the report with a “what if?” attitude here: SunTrust Settles With Justice Dept. Over Mortgages; Talks Continue for Citigroup and Bank of America