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How States Will Spend Foreclosure Settlement

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  • Description

    FBN's Liz MacDonald on how the states will use foreclosure robo-signing settlement.

  • Duration 1:37
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The states in line to collect four point 25 billion dollars from that recently unveiled 26 billion dollar foreclosure settlement with some of the big banks but with -- state deficits where does that money go Liz MacDonald she joins us now -- report that was Wisconsin's gonna use the money to plug budget holes Missouri cities have further educate a big -- for their education budget we saw this for the tobacco settlement and that came -- 199841.

Of the 46 states.

And that's settlement and tobacco settlement basically use the money to plug balance sheet -- -- that's the fear going on.

With bankers telling Fox Business hey wait a second -- financial still owes the US government.

Seventeen point two billion dollars it's a private companies struggling to go public.

And so it basically what we're seeing two bankers telling Fox Business -- worried that.

Cecil issue bonds on the back of this settlement it -- That money's coming in the door over three year period to -- on the money immediately when we saw the tobacco bonds scope to junk status in the fall of 2010.

That's a -- the knee deep bond chaos then.

Which -- Meredith -- saying you know the sky is falling.

But it was really a -- I think he'd done correctly cigarette but yes anti dumping those tobacco bonds into junk bond status which went.

-- -- markets haywire so there's a real fear in the part bankers telling Fox Business.

Hey wait a second don't be issuing bonds on the back this for a close up for closer settlement money got to make sure that -- and the money -- the door for -- it raises the issue that there's been in the money on things other than.

Foreclosure prevention and housing down that's my and that's what the money is -- that but we're gonna use it for someone else -- we -- -- financially -- -- we broke that news report that last October there were planning to do that -- less mature collection headers.

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