Friday, November 5, 2010

I Hate Banks

I hate banks.  I mean I hate those banks that made loans they couldn't live with.  I mean the banks that turned to the American public when these loans started to go south and asked for money to help them survive.  I mean the banks that took the money and then gave the government the bad loans.  I mean the banks that used the money to boost their own bottom line, not improve the economy.

The latest selfish activity of the banks is that they refused to help those who filed bankruptcy because they couldn't pay their loans.  In bankruptcy loans on your primary residence are not negotiable.  I thought that was the point of bankruptcy, that you could negotiate more favorable terms to debts.

It appears that loans on the home that you are able to keep are not able to be renegotiated in bankruptcy.  In 2008 Congress attempted to get this changed because so many people with loans they couldn't afford were filing bankruptcy.  The financial institution industry lobbied very hard against this and this reform didn't pass.

I heard on NPR that if this change to the bankruptcy laws had passed we would not have needed the Federal Government's loan modification program.  I hate banks.

1 comment:

Max said...

Hey Pedro, do you hate banks?