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FT.com / Comment / Editorial - Wall Street's bad behaviour redux
The growing scandal over the improper, and perhaps fraudulent, foreclosures on homes by US banks is becoming both a financial and a political hot potato. Wall Street is being forced to admit to yet more unsavoury practices linked to mortgage bonds and President Barack Obama has been dragged into the affair.
...
The banks and their defenders mutter that this is all a bureaucratic technicality and much ado about nothing...

They are wrong, and the fact that they regard court proceedings to repossess homes so lightly is a worrying reflection on Wall Street's ethical standards, or lack of them. At worst, the banks may have been lying to courts over a vital safeguard in property law - the sanctity of documents.

This scandal is a mirror image of the lax and often improper lending practices that grew up in the years before the 2008 financial crisis as Wall Street raced to extend mortgages in order to have fodder for asset-backed securities. They never took seriously the importance of lending soundly and thoughtfully to homeowners.



"Ce qui vient au monde pour ne rien troubler ne mérite ni égards ni patience." René Char
by Melanchthon on Fri Oct 15th, 2010 at 05:08:02 PM EST
[ Parent ]
Why didn't the feckless, poor and foreign house buyers force the banks to manage their paperwork properly?

If it hadn't been for their frankly slipshod attitude to contract law we wouldn't be in this mess.

by ThatBritGuy (thatbritguy (at) googlemail.com) on Fri Oct 15th, 2010 at 05:20:13 PM EST
[ Parent ]
apologies to those august, venerable institutions are in order...

the proles forget their place.

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty

by melo (melometa4(at)gmail.com) on Sat Oct 16th, 2010 at 08:47:52 AM EST
[ Parent ]

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