EDITOR: It was reported that Bank of American agreed, after considerable negotiating, to settle government claims over toxic mortgage securities that helped trigger the Great Recession (“Bank of America to pay $17 billion penalty,” Aug. 7). Previously, settlements were reached with Citigroup and JPMorgan Chase.
When I read this article, the question that occurred to me was who wins when banks fail? Actually the banks didn’t fail; rather their management failed to run their businesses legally. The government kept them from going under.
So were there any winners when the banks were saved? The banks’ borrowers did not win. Many lost their homes. The bank stockholders didn’t win because the value of their investments diminished. We, the taxpayers, lost by having to bail out the banks. The only ones who came out winners were the heads of the banks who created the banking fiasco. They all continued to collect big pay checks, bonuses and retirement packages.
Is there likely to be another banking crisis? When bank executives see that they win regardless of how their risky ventures play out, you can bet they will keep rolling the dice.
EDITOR: I am a third-generation Sonoma County resident. Due to circumstances beyond my control, I had to sell the home I have lived in for 16 years and find myself in the rental market for the first time in 23 years. I have pristine credit but am on a limited income. Since landlords can no longer require first, last and deposit, they now mandate that your rent be no more than one-third of your income. A “decent” one-bedroom apartment costs $1,400 a month. If you have pets, add on $30-$40 per month per pet. The tenant is also responsible for all utilities.
I have come to the conclusion that I can no longer afford to live here in my hometown. So I’m moving 110 miles away, to another county, where I can live in a nice two-bedroom, one-bath home with my pets and still live relatively comfortably. I have to leave my 94-year old mother and friends.
It’s a sad situation when locals have to leave Sonoma County to find affordable housing.