We have long railed against America’s Too Big To Fail banks. Bank of America, JP Morgan Chase, Wells Fargo, Citi, HSBC…. long ago these institutions lost sight of their mission and duty to the public. For example, Bank of America’s newest slogan is “You’re Headed In The Right Direction.” Ask any of their customers facing a wrongful foreclosure action if the they are headed in the “right direction.”
HSBC says on its website that their mortgages can “make you feel right at home.” Ask folks in New York who are facing a wrongful foreclosure. 2 days ago the New York State Attorney general sued HSBC claiming that it ignored a law designed to protect struggling homeowners.
Since the mortgage meltdown, Congress has proposed a variety of initiatives to reign in big banks. 6 years later, there has been no substantive reform. The latest effort comes in the form of a bipartisan bill introduced by Sen. David Vitter of Louisiana (a Republican) and Sen. Sherrod Brown, an Ohio Democrat. The bill, titled the “Terminating Bailouts for Taxpayer Fairness Act,” would dramatically increase the equity capital requirements for banks with more than a $500 billion in assets.
Predictably, the banks affected by the bill have immediately mobilized their lobbyists to fight the legislation.
The banking industry wants to preserve the status quo. No surprise there. Despite millions of Americans losing their homes and the forced closings of hundreds of banks throughout the United States since 2007, the biggest banks have added $2 trillion in capital assets since then. While homeowners face wrongful foreclosures, small businesses and farmers can’t access capital and millions lose their jobs, the biggest banks continue to get bigger.
Some folks in the administration believe that increased regulatory supervision is necessary. As we have learned, however, there is a revolving door between the regulated and the regulators. The policy makers in Washington D.C. that work for the FDIC, Treasury, Federal Reserve and the Comptroller of the Currency often leave government service to take cushy (and very lucrative) jobs in the banking sector.
There are many problems in the Vitter Brown banking bill. And the sheer size of America’s “too big to fail” banks means they have lots of money to spend on lobbying. Will the bill pass? Probably not but pressure is building for some type of reform. We hope that reform doesn’t come from regulators, however.
Until Washington D.C. acts, the best way to fight the big banks is in the courtroom. As long as we have juries and lawyers willing to take on the big banks, homeowners, farmers and businesses have a fighting chance.
Although the economy is finally picking up, the recovery is at best uneven. Millions of Americans have been irreparably harmed by the insolence and behavior of the large banks. Hundreds of thousands of people have lost their homes because of wrongful foreclosures, improperly denied HAMP loans or because mortgage brokers hell bent on a quick commission put them in loans they could never afford.
There is plenty of blame to go around, unfortunately. And although we take issue with many of the largest banks, plenty of smaller lenders have dirt on their hands as well.
The wrongful foreclosure lawyers at Mahany & Ertl represent homeowners who are the victims of a wrongful foreclosure or HAMP denial. Unfortunately, we are overwhelmed with calls and can only consider cases in select markets and with good documentation. Please note that we are not a traditional mortgage foreclosure defense firm. We believe the best defense is a good offense. If you made your payments but were still subjected to a wrongful foreclosure, we may be able to help
For more information, please contact attorney Brian Mahany at (Wisconsin cases) or attorney Anthony Dietz at or 248-789-5551 (Michigan cases). Facing a wrongful foreclosure in another state? Contact Anthony, we may be able to help in select other jurisdictions.
Please note that if you are facing the imminent loss of your home, contact a mortgage foreclosure or bankruptcy lawyer in your area immediately. We sue banks for money and compensation and can’t take foreclosure cases with impending eviction or hearing dates.
Mahany & Ertl – America’s Foreclosure Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine; Minneapolis, Minnesota and San Francisco, California. Wrongful foreclosure cases in select jurisdictions nationwide.
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