News Articles By Mary Bottari

Tough Talk Is Not Enough on Loan Modifications

Today, the Obama administration announced that it is stepping up efforts to pressure mortgage companies and banks to reduce payments for homeowners facing foreclosure.

As double digit unemployment becomes the major driver of foreclosures and as the vast majority of adjustable rate mortgages have yet to trigger, the White House is finally getting the message that news footage of families being tossed to the curb during the holiday season will not help Democrats going into the 2010 election cycle.

Bernanke Blames the Banks, Trumka Calls His Bluff

America’s financial sector has blown a hole in the economy so large that it will take many years to repair. The formal unemployment rate is above 10 percent and underemployment is an astonishing 17.5 percent. Yet last week, Bloomberg News calculated that the top three bailed-out Wall Street firms are on track to pay $30 billion in bonuses to their top officers this year and the Wall Street Journal estimated that the bonus pool for the financial sector as a whole is $140 billion.
 
Taxpayers have done their share. They have put trillions of dollars at risk in an effort to stabilize the financial system and have gotten little in return. Too many banks are not lending to small businesses, they are not helping American families facing foreclosure, but they are raising credit card and other bank fees at a rapid clip.

While many have been starkly critical of bank performance, yesterday criticism came from a new source, the Chairman of the Federal Reserve.

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