''Foreclosure Settlement Bails Out the Big Banks''

...."In addition it removes the risk of default on second mortgages from the banks which actually improves the health of the banks’ financial statements. As Smith expressed it: “This deal is a stealth bailout that strengthens bank balance sheets at the expense of the broader public.”

And enforcement is likely to be lax as well. The first layer of enforcement “is the banks reporting on themselves.” Smith called it “regulatory theatre.”

from the new american....