As Bad Deal Looms, Working America Presses White House, Justice Dep’t for Bank Investigations, Homeowner Relief
Today, as a settlement deal looms to let the biggest banks off the hook for causing the worst financial crisis since the Depression, Working America continues its campaign to urge the Obama Administration and the Justice Department to begin a full investigation into those banks’ foreclosure practices, impose appropriate penalties, and restore the massive losses suffered by homeowners throughout the country.
While President Obama prepares for his State of the Union address, Working America is connecting thousands of workers to the White House urging the Administration to reject a current plan that would effectively be a slap on the wrist for the biggest mortgage servicers in the country: Bank of America, Wells Fargo, Ally Financial, Citigroup and JPMorgan Chase. The plan would not only be pocket change for these banks who are accused of massive foreclosure malpractice– it would leave the door open for more fraud.
Thousands have already joined the campaign. One worker from Tennessee wrote:
“The identifiable violations for which banks should be prosecuted ranges through the financial food chain…the rolling national crime spree must be brought to account.”
The $25 billion dollar settlement proposal being discussed is a fraction of what is needed to address the $750 billion in negative home equity that exists in America. A fair settlement must include not only investigating shady practices and problems with mortgage-backed securities, but also reducing the principal on “underwater mortgages” that are crushing working families facing foreclosure.
Income inequality and fairness will no doubt be central themes in Tuesday night’s speech. We hope President Obama’s words will reflect action to hold the big banks that caused the economic crisis accountable.