"You work for the people not the banks!"
Elizabeth Warren vs. Captured Banking Regulators. Guess who wins.
Outstanding clip from Senate hearing a few weeks ago on illegal foreclosures. Warren blasts the Fed's lawyer for shielding big banks and hiding fraud.
"You have made a decision to protect the banks but not to help the families who were illegally foreclosed on. Families get pennies on the dollar for being the victims of illegal activities. And you know of cases where the banks broke the laws, but you are not going to tell the homeowners. People want to know that their regulators are watching out for the American public, not the banks."
- Daniel P. Stipano, Deputy Chief Counsel, Comptroller of the Currency
- Richard Ashton, Deputy General Counsel, Federal Reserve
Last week, the Government Accountability Office issued a report and concluded that regulators at the Fed and OCC gave banks “too much leeway” in how the reviews were conducted, implying that the shoddy review process led to a hastened settlement. On Tuesday, regulators released new information suggesting that banks may have made errors in as many as 30 percent of all loans that qualified for a review.
Watch the first 2 minutes of this clip:
Fed lawyer says bank fraud is privileged information.
WARREN: So you have made a decision to protect the banks but not a decision tell the families who have been illegally foreclosed against?
FED LAWYER: We haven’t made a decision about what information we would provide to individuals.
WARREN: So I just want to make sure I get this straight. Families get pennies on the dollar in the settlement for having been the victims of illegal activities or mistakes in the banks’ activities. You now know individual cases where the banks violated the law and you’re not going to tell the homeowners.
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