August 23, 2012
'A Nation Adrift From the Rule of Law'
Excellent piece in the Wall Street Journal by David Keel, a professor at the University of Pennsylvania, about how the idea of the rule of law has been gutted over the last few years: Consider the litigation that led to the recent $25 billion National Mortgage Settlement, which was brought by the state attorneys general and quarterbacked by the Obama administration. The plaintiffs alleged that five of the nation's largest banks used "robo-signers"-law firms that filed large numbers of foreclosure documents without bothering to check the details-and added unnecessary fees such as overpriced insurance during the real-estate bubble. These actions deserved to be punished, but the settlement had almost nothing to do with the allegations. A large majority of the settlement will go to mortgage relief for homeowners who weren't affected by the robo-practices, or to provide a bailout to the states. Both steps are illegitimate uses of the judicial process. Or consider the Dodd-Frank...(Read Full Post)