How Banks Stopped Obama’s Bill From Modifying Home Mortgages

Executive Summary

• Obama was a cat’s paw for private banking interests, however, he did try to allow for mortgage modification, but the banks would not accept this.

Introduction

This quote explains what Obama wanted to do.

When President Obama proposed a bill in Congress that allowed judges to modify home mortgages so borrowers could avoid foreclosure, the banks swiftly killed the bill and refused to even negotiate with senators over some of its provisions.125 The banking sector hired more lobbyists and gained unprecedented access to Washington insiders, leading a senior Obama advisor to remark, “You would hope after American taxpayers stepped in to save these companies from a disaster of their own making they would be deploying their army of lobbyists to strengthen and not thwart financial reform.”126 According to a congressional staffer, the path to reform looked like “an orchestrated, well-funded effort by banks to manipulate our legislation and leave no fingerprints.”127 Banks fought most attempts at major banking reform, arguing that any reforms that lowered bank profits would lead to a longer crisis and recovery period.

Source: How the Other Half Banks

https://www.amazon.com/How-Other-Half-Banks-Exploitation/dp/0674286065