Main Street

Don’t Settle for a Slap on the Wrist for Bad Banks

We know that the financial crisis that devastated our economy and demolished the housing market didn’t happen by accident. It was pushed along by the greed and irresponsibility of some of Wall Street’s biggest banks, for whom millions of mortgages were nothing more than gambling chips.

These banks didn’t just repackage mortgages into shady derivatives. They frequently defrauded and abused homeowners through practices like “robo-signing” and violations of contracts. There are 7.5 million homes that have entered the foreclosure process, with another 4.8 million homeowners at risk. I’s time to set things right.

After the crash, these banks got bailed out—but, even as the rest of the economy continues to suffer, these bankers are having their very own recovery. They took our money to compensate for their misbehavior, and it’s time to hold them accountable.

Some state Attorneys General are, to their credit, pushing hard for a full investigation that would let us know which banks engaged in misconduct and abuses of consumers—and real penalties for banks that broke the law. Others, however, are trying to let the banks off with a slap on the wrist. We’re in real danger of seeing the states settle with banks for a tiny penalty that doesn’t begin to cover the damage done. The banks would love to get away with a light fine and immunity from future investigations of their role in the crisis—but that doesn’t mean state Attorneys General should let them.

Our members are reaching out to their state Attorney General to demand a full investigation and real consequences for banks that broke the law. Real mortgage relief is one of the 9 Demands of the 99 Percent, and we can’t put bankers ahead of homeowners.

These state law enforcement officials have a job to do. Their role is to protect consumers and make sure that those who rip off citizens of their state don’t get away with it. They need to hear from you and know you demand they do their jobs.