After a year of talks and little action, government officials have worked out a potential $26 billion settlement with the nation's top five banks, the New York Times reported. The agreement could provide relief for up to two million Americans who have had their homes foreclosed on since September 2008; it totals up to $1,500 to $2,000 per borrower. The five banks involved—Ally Financial, Bank of America, Citigroup, J.P. Morgan Chase, and Wells Fargo—collectively handle 27 million mortgages. Although this move is a good way to help hurting homeowners, bigger problems with the process need fixing. “If you don’t do something to help the foreclosure process, it’s not going to help the housing market,” said Christopher J.
Ben Bernanke is second only to Barack Obama when it comes to being a Republican punching bag for the economic downturn, but the Federal Reserve chairman spent some time explaining his decisions and expectations for the coming months during a session with the Senate Budget Committee yesterday. Bernanke said that his biggest worry was the federal deficit, which he said is on pace to become unsustainable in the next 15 to 20 years.
It’s no secret that super PACs skew toward the wealthy set. However, a new study from Demos (editor's note: Demos is The American Prospect's publishing partner) and U.S. PIRG highlights how few people are running the money game this election cycle and how secret some of their contributions can be. Since the birth of super PACs in 2010 until the end of 2011, 93 percent of the itemized funds raised by super PACs from individuals were more than $10,000. That’s only 726 people.
The payroll tax cut extension passed by tooth and nail at the end of 2011 expires at the end of February, and this month's battle to work out the re-extension's logistics looks like it will be just as painful. A 20-member conference committee is hammering out the details, with three hearings scheduled for this week, including one this morning. The committee has less than three weeks to craft a deal and get it to Congress for passage before the President's Day recess.
Before all eyes in the country turned to football last night, President Barack Obama told Matt Lauer in his annual pre-Super Bowl interview that he "deserve[s] a second term.” He went on: “We’ve made progress.