American Enterprise InstituteAEI comes out for Government to Help Banks.
In a shocker - at least to me - the 'small government right leaning' American Enterprise Institute explains why banks need help from the Government to skirt the law and resolve foreclosuregate.
Anyone who has ever been to a real-estate closing can grasp what is going on. A housing transaction requires that a borrower provide countless signatures on almost every page of a massive stack of paper. Reviewing each page is virtually impossible for typical homebuyers, but that doesn’t stop them from signing and attesting that they understand all the terms.
Imagine you are being deposed by an adversarial attorney, who asks: “Are you sure you read every word in the document you signed?” If you’re like me, you would have a hard time answering honestly in the affirmative. - Kevin Hassett, director of economic-policy studies at the American Enterprise Institute
And then begging for the Federal Government to step into foreclosuregate on the side of the banks.
Which means that Washington needs to step in and do what it can to preempt the coming legal morass. - Kevin Hassett, director of economic-policy studies at the American Enterprise Institute
Because God knows, the financial industry would not lie cheat or steal.
And then he reminds us of an earlier incidence, about a "populist Attorney General". If memory and Google serves, Elliot Spitzer penned a letter in the Washington Post, accusing the Bush administration o preventing ALL fifty state Attorney generals from investigating mortgage fraud through the misuse of the Office of the Comptroller of Currency.
The probability that some ambitious, populist attorney general -- does the name Eliot Spitzer ring a bell? -- goes overboard seems high if the detective work is left to the states. A neutral and authoritative statement of the facts by federal regulators would go a long way toward limiting the legal feeding frenzy. If entire swaths of the foreclosure landscape are deemed high jinks-free, then banks can breathe a sigh of relief and start lending again
I would like to thank the American Enterprise Institute for offering the advice that the Federal Government should consolidate it power and protect the banking industry from prosecution by individual States.
I would like to go in a different direction this time around and encourage the Attorney Generals of all fifty States to rip new a**holes in the financial industry until all the s**t comes out.
I am not optomistic though.