The Fed messed with the wrong senatorIf foreclosure victims get justice, trace it back to a bad decision to stonewall Elizabeth Warren last week.
Despite OCC and the Fed’s best efforts to protect banks from harm, they've actually exposed them like never before. If I didn't know better, I’d think there were moles among this gang-that-couldn't-regulate-straight.
Rather than complying with Congressional requests for additional information on cancelled reviews, OCC and the Fed decided to shroud the entire process in secrecy. And they picked maybe the worst person in Washington to stonewall: freshman Senator Elizabeth Warren.
In a closed meeting last week, the agencies told Warren and Representative Elijah Cummings that they could not provide documents they requested about the specific violations by mortgage servicers, or the results of the reviews, because doing so would violate company “trade secrets” (apparently ripping off your customers and stripping their assets is now a valuable trade secret). Practically any other Senator would not get much attention from being denied documents by a federal regulator.
But Warren, with a grassroots army of enthusiastic supporters and a yen to deliver on her early promise, makes headlines crossing the street. And the foreclosure review debacle represented an excellent test case to expose the corrupt dealing between banks and the regulators who are supposed to curb their excesses, and also to pit Wall Street denizens getting rich off these crimes against ordinary victims who lost their homes. You couldn’t tee up a better issue for Warren, or a better entryway for traditional media to report it.
Full article on Salon: http://goo.gl/wdQiy #Senate #WallStreet #OCC #FederalReserveBank #Foreclosures