Mike Castle Wants to Reward Banks for F*cking Up
Mike Castle wants to shield banks from the consequences of providing crazy ass “NIJA” loans.
Not all investors in mortgage-backed securities are thrilled with the idea of freezing interest rates on hundreds of thousands of adjustable-rate mortgages, and some have threatened to sue if the deal goes through. They won’t be able to, though, if a bill sponsored by Republican congressman Mike Castle of Delaware becomes law. Castle’s bill would shield the mortgage banks from these lawsuits, giving them a free hand to go along with the administration’s bailout. This would do enormous damage to the reputation of securities backed by American debt.
As the NRO points out, this scheme to protect bank profits also hurts renters who have been hoping for a dip in housing prices and an opportunity to buy. The responsible people, “waited and saved for such an opportunity, even as others rushed headlong into mortgages they now find themselves unable to pay back.”
No matter. Mike Castle wants to protect bank profits at any cost. SCREW YOU RESPONSIBLE PEOPLE.
A lot of banks were ripped off a few years ago in property flipping schemes. Call them stupid.
“Creative Finance” allowed a lot of people to get into homes that were beyond their grasp using conventional criteria of creditworthiness. Phrases such as ‘negative amortization’ may have sounded like ‘hocus-pocus’ in the fast talk at the settlement table.
Always-rising home prices made adjustable rate mortgages and interest-only loans attractive.
Now, a lot of people are learning some bitter economic truths. Who will be hurt the most? How many financial institutions have ‘passed the trash’ in the form of ‘sick loans’ to other entities in the ‘greater fool’ game? How many pension funds are laden with mortgage-based securities of dubious worth? Who will really get hurt? Will top financial executives be kicked out of their private jets but be protected by platinum parachutes while the other passengers (and crew) go down in flames?
Before anyone tries to make this a partisan issue, it seems as if a preponderance of the money changers on Wall Street are in the Hillary camp.
The avaricious misbehavior of big banks and certain other institutions is often hidden by a tattered facade of social consciousness but the goal is to screw the public.
“Business Friendly” does not always mean granting licenses to steal.
Politicians of both parties need to learn this lessor (or find another type of employment).