Pandering to the Banks, The White House Turned a Blind Eye to Abuses

South façade of the White House, the executive...

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Remind us again, Mr President, about all that good old change you’re bringing to the way the White House does business… Because the Washington Post reports something quite different.

In recent days, amid reports that major lenders have used improper procedures and fraudulent paperwork to seize properties, some Obama administration officials have acknowledged they had been aware of flaws in how the mortgage industry pursues foreclosures. But the officials said they could take only limited action to address the danger. In part, this was because they wanted lenders’ help carrying out federal programs to modify mortgages that had fallen into default or were poised to do so.

In other words the Government knew that the banks were intentionally manipulating foreclosures, but because the White House wanted the banks help, didn’t do anything about it.

Thanks, Mr President. All that change feels great. I feel all warm and fuzzy inside knowing you did everything you could to help big business while allowing average Americans to pay the price. Nicely done.

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One thought on “Pandering to the Banks, The White House Turned a Blind Eye to Abuses

  1. Doug 10 Oct 2010 at 5:15 pm

    I am not sure the banks are “manipulating” the foreclosures and more than the Federal Govt is. First, the people buying the houses knew for the most part what they had to pay and they knew about ARM mortgages. Second, if the govt had just let the bankruptcy code work, most of the pain these people had been in with their debts would have been well on its way to being worked out. Perhaps the banks were not as careful with the paper work as they should be, but the people who owed the mortgages did sign the paper promising to pay the money back. Frankly, I would be surprised if very many houses were foreclosed on that should not have been.


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