(Translated by https://www.hiragana.jp/)
States Asked for Foreclosure Probe—3 Years Ago - Federal regulators turned down request, put off matter
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THURSDAY, NOVEMBER 11, 2010
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States Asked for Foreclosure Probe—3 Years Ago

Federal regulators turned down request, put off matter

By Matt Cantor,  Newser Staff

Posted Nov 8, 2010 1:26 PM CST
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(Newser) – State regulators suspected that there was something fishy about banks' foreclosure procedures as far back as three years ago, but federal regulators forbid them to take action, the Washington Post reports. The federal comptroller told the states his office was already planning an investigation, and that banks should only respond to federal inquiries. But instead of following through, the office trusted the banks’ self-assessments.

“Based on what we were seeing and what we were concerned about, it felt like a chronic underreaction at the federal level,” said a state banking official. When the mortgage industry identified problems with thousands of foreclosures in September, the Office of the Comptroller of the Currency still refrained from investigating. Only two weeks ago did the OCC—the top overseer of the biggest banks—take action by sending its own workers into banks to review foreclosure practices.

Then-Comptroller of the Currency John Dugan, left, and former Comptroller of the Currency John Hawke Jr., testify on Capitol Hill in Washington, Thursday, April 8, 2010.
Then-Comptroller of the Currency John Dugan, left, and former Comptroller of the Currency John Hawke Jr., testify on Capitol Hill in Washington, Thursday, April 8, 2010.   (AP Photo/J. Scott Applewhite)
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COMMENTS
Showing 3 of 8 comments
speakerfixer
Nov 8, 2010 4:56 PM CST
And people like Barney Frank were insisting "There is no problem" as recently as 2004. And did NOTHING to fix this problem, when in 2006, he was put in charge of committees that could have helped. Wonder why? At least people like John McCain were WARNING about the problem, by 2005-2006... but, they were ignored, by those who thought they knew everything, and that nothing BAD could EVER happen (could it?)...
my-name-here
Nov 8, 2010 3:05 PM CST
If these big businesses and banks could be responsible and ethical, there would be no need for regulation, but so far, they prove time and again that they will not/can not be. Hence, the need for regulation. Yes, it's a case of the corrupt watching the corrupt, but what choice is there?
pg13
Nov 8, 2010 2:11 PM CST
And now (with "reform") it's up to the states to regulate investment advisors with under $100 Million in management. (Used to be the SEC regulated an advisor with more than $30M) I bet the states won't add a single examiner.
Business • US

 
mortgage • Wells Fargo • watchdog • Office of the Comptroller of the Currency • JPMorgan Chase • comptroller • regulator • regulatory body • big banks • foreclosures

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