The upcoming JPMorgan Chase settlement is expected to be the largest corporate settlement in Justice Department history. Unless the Justice Department prevents it, JPMorgan could heap billions of dollars right back onto the shoulders of taxpayers.
Wall Street doesn't want a new director of FHFA. They like things the way they are, and don't want a new sheriff in town. That is why Republicans are so willing to buck history and tradition, are so willing to stop the first African-American appointee to run FHFA to be confirmed.
President Obama has already fired Ed DeMarco, acting director of the Federal Housing Finance Agency (FHFA), but before he leaves DeMarco is handing an early Christmas present to his friends in the banking industry.
Senator Kirk voted against allowing a floor vote on Cordray and signed a letter with 42 Republicans vowing to block any nominee, no matter how qualified, unless the CFPB is substantially weakened. That isn't right.
Making it easier for homeowners to reduce their monthly mortgage payment and keep their homes is always favorable; however, providing homeowners with an incentive to fall behind on their payments could be an unfavorable strategy for both taxpayers and homeowners.
On the housing front, the good news is that the president wants Mel Watt to head the FHFA. The really bad news is that the problems in the U.S. housing system are currently so entrenched that, even if he is confirmed, Mel Watt will be hard-pressed to resolve them.
The anti-DeMarco campaign is part of a broader movement to hold Wall Street banks accountable for crashing the economy, destroying the housing wealth of millions of homeowners, and refusing to help families facing foreclosure through no fault of their own.
Ed DeMarco's continued ideological opposition to principal reduction -- also known as resetting mortgages to fair market value -- has made him widely known one of the biggest obstacles to our country's economic progress.
The FHFA's decision preserves unfair practices in the mortgage servicing and insurance industries. It means the new approach and lower rates will not be implemented and therefore the status quo will continue.