Speaker Pelosi and 30 California Democrats: “Banks Need To Be Held Accountable.”

Today, Speaker Pelosi and 30 California Democrats told the justice department that “it is time that the banks were held accountable for their practices.” Really? You guys are just figuring this out? Wow, Congress is sure slow on the uptake…or maybe it’s all that Goldman Sucks money flowing into the pockets of elected officials that’s clogging up their brains.

Let’s see: over the past two years, we have seen the foreclosure rate continue to rise and hundreds of thousands of Americans have been kicked out of their homes in spite of programs designed to help them. Going through the HAMP process is a nightmare in and of itself, aside from the trauma of foreclosure itself, because the banks just don’t want to cooperate. They won’t even cooperate on short sales most of the time! Recently, we’ve had the Ally Bank signature debacle and another company, Lender Processing Services (LPS) has been in the news lately because apparently they’ve been having their employees sign authorized employees’ signatures to foreclosure documents.

 

While foreclosures have been halted due to these mishaps in 23 states, they continue apace in other states that allow foreclosures to proceed non-judicially. States such as California. Are we to believe that these errors only occurred in the 23 judicial foreclosure states? If you believe that, then I’ve got a bridge in Brooklyn I’d like to sell you.

What’s worse is that the bailed out banks are awash in profits again. They’re doling out bonuses like there’s no tomorrow and fat cat CEOs like Jamie Diamond and Lloyd Blankfein are sitting on their massive fortunes. The companies that caused this catastrophe are feeling NO pain while the average American family has to deal with job loss, foreclosure, and NO WORK.

This is beyond reprehensible and while I am glad to see that Congress is talking about this, it comes far too late, and there no specifics as to HOW they plan to hold these banks accountable. We’ve had a Wall Street reform bill pass that did nothing to address “too big to fail” and left most of the troublesome derivatives unregulated. They did not reinstate Glass-Stegall, which actually worked quite well in keeping our financial system safe until it was repealed.

Enough is enough. Everyone who is reading this blog should immediately write to their senator and representative and demand the following:

1: Nationwide foreclosure moratorium – six months minimum

2: An amendment to the bankruptcy code to allow bankruptcy judges to modify mortgages on primary residences. They’re allowed to do it on second and vacations homes, and things like yachts already. Give this power to the average American. This will give HAMP the teeth it needs to actually work.

3: Reinstate Glass-Stegall. This provision will end too big to fail and will ensure that the kind of shenanigans that lead to this mess will never happen again. It will ensure that our financial system is safe and secure.

Don’t wait until election day. Call and write to your senators and representatives now.

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