Thursday, December 1, 2011

Banks are our friends. .... .... .... ....what?

Massachusetts Attorney General Martha Coakley is suing five of the nation's biggest banks: "Our suit alleges that the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law." Huffington Post, 12/1/11.

I remember way back when a mountain of foreclosures looked like they were about to fall on our heads, I asked: What was to keep the Banks from playing this? Holding back properties they wanted, dumping others, delaying and hurrying, using their clout to bully and so on?

Good old RDC, who has never seen a corporation he doesn't like, said, Oh, no, they will have to follow proper procedures, the rule of law.

Heh.

What say you now, RDC?

2 comments:

RDC said...

States bring suites for lots of things. Some have merit some do not. Some are brought because they are real, some are because they make good political press.

In many cases you have states sue over what has been considered to be acceptable practice, even supported by the state, for a period of time.

I suspect that this suite is really old news and is related to the robo signing issues raised a year or so ago.

These days state attorney generals have basically adopted the same practices as class action attorneys. Raise a case knowing that the companies will settle. Get lots of publicity. Raise some money for the state. Very little for the individuals that may have truly been impacted.

Note the suite is not claiming that the money was not owed, that the people had not defaulted. The only claim here is that all of the i's were not dotted and the t's not crossed.

Carl said...

No one ever denies that any of these poor folks were not delinquent on their payments, do they? They were in default, so what is the gripe? They were truly on the road to foreclosure and whether a chipmunk signs them or a person for the bank, the procedure is pretty well defined. Especially in non-judicial foreclosure states, like OR.