WASHINGTON–Banks have paid fines of approximately $110 billion as the result of their actions toward the mortgage bubble and crash. But where has that money gone?
According to an analysis by the Wall Street Journal, it’s gone to everything from horse stables to email accounts for police and, in some cases, to homeowners who suffered damages. But much of it is simply unaccounted for, disappearing into government budgets.
The Wall Street Journal said its review of the terms of more than 30 settlements with agencies at the state and federal level found that of the $110 billion collected in fines:
• The Treasury Department received almost $49 billion of the funds.
• $45 billion went to “consumer relief,” a category that includes money dedicated to helping borrowers and funding housing-related community groups.
• The Justice Department collected at least $447 million, but how that money has been spent can’t be specifically identified.
• States received more than $5.3 billion, usually to spend as they saw fit.
• Roughly $10 billion went to other recipients, including housing-related federal agencies, two federal agencies responsible for cleaning up failed banks or credit unions, and whistleblowers who helped the Justice Department, according to The Wall Street Journal.
The Journal noted that most of the money attributed to Treasury in its analysis came indirectly from Fannie Mae and Freddie Mac. Their regulator, the Federal Housing Finance Agency, collected more than $34 billion in fines, most of which was transferred to Treasury.
The Journal added that tens of thousands of homeowners have also been helped with their mortgages in neighborhoods from Jacksonville, Fla., to Riverside County, Calif., and money has also gone to fund loans for low-income borrowers.