Justice For Some, Again
Posted on Mon Nov 29, 2010 at 12:04:45 PM EST
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The Fed takes care of banks:
[B]anks have never acted as if they bear responsibility for the mortgage mess. They have pursued foreclosures in violation of borrowers’ rights to due process, as revealed by the recent robo-signing scandal. And, despite having been bailed out for their mistakes, they have pursued their self-interest, not the public interest, when it comes to modifying bad loans. They have resisted reducing principal balances for troubled borrowers, for instance, because that could force them to take losses they would rather delay.
Now, despite mounting evidence of borrower mistreatment, the Federal Reserve has proposed a rule that would disable the most effective legal tool that borrowers have to fight foreclosures. [. . .] Citing concern over banks’ compliance costs, [the Fed] would require a borrower to pay off the remaining principal before the lender gives up its security interest. That would be clearly impossible for troubled borrowers. So the Fed’s proposal would benefit the creditor who violated the law rather than the borrower, paving the way for foreclosures that otherwise could be avoided.
The Fed failed to protect consumers before the financial crisis, and is failing again. [. . .]
The entire government has failed consumers and is still failing. This is not new.
Speaking for me only
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