Busted: Bankers and The Global Economy

March 15, 2011

Obama’s Plan To Punish Banks

Filed under: banking, business, corporatism, economy, recession — digitaleconomy @ 11:56 am

Large banks targeted“Shock and awe” are in the wings as the Obama administration seeks to force mortgage firms to reduce monthly payments for as many as 3 million distressed homeowners. This is to happen in the next 6 months as part of an agreement to settle accusations for improper foreclosures as well as patent violations of consumer protection laws.

The forced agreement would accomplish four goals set out by state and federal policy makers and regulators as part of multi-agency investigations into abusive mortgage practices by the nation’s largest financial firms. It will punish banks for violations of state law and federal regulations, provide much-needed assistance to distressed borrowers and send a warning to firms about abusing homeowners in the future.

Obama hopes to start a healing process required to clear the large volume of repossessed and soon-to-be-foreclosed homes that’s continue to depress the housing market and prices while draining consumer confidence.

 

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