According to an article in the Dallas Morning News, nearly bankrupt banks who received the multi-billion dollar taxpayer funded bailout rewarded their top executives with nearly $1.6 billion in salaries, bonuses and other benefits in 2007. Personal use of company planes, private drivers, company funded financial planners and country club memberships were just a few of the perks offered by bankers who received bailout money. Although many banks have made an effort to trim executive costs, most executives are still making way more than the average American worker can ever dream of.

Goldman’s top executives are forgoing bonuses but still earn $600,000 a year in base salary. Not only that, but Goldman is actually fighting to keep the $255,000 chauffeurs and personal financial planners for their executives. Did I miss something? Didn’t these bankers come to the edge (or over the edge) of bankruptcy? Didn’t they come with their hat in hand to the American taxpayer, many of whom are bankrupt themselves, for a bailout? What about the autoworkers who are being laid off, where are their personal financial planners? They’re going to need one to try to figure out how to pay their mortgages, healthcare and save for retirement with NO income. There is nothing wrong with executives making large salaries. But there is something wrong with executives making large salaries after failing to keep their companies afloat financially whereby needing to depend on taxpayers for a bailout.

Although the bailout guidelines restricted executive compensation, it did not limit salaries or bonuses unless it would “encourage excessive risk” to the financial institutions. It seems to me, that the only people taking excessive risks are the American taxpayers.

The Dallas Morning News reports that in 2009 Texas will allow senior citizens with long-term healthcare insurance to keep more of their personal savings if they need to use Medicaid. Texas insurance officials will offer “private partnership policies” that will offer asset matching protection for those who purchase long-term healthcare insurance. For every dollar an individual uses in coverage from a long-term healthcare insurance policy he/she will be allowed to keep that same amount in their retirement savings or other personal assets if they ever need to use Medicaid.

For example, if a senior citizen uses $150,000 of a long-term healthcare insurance policy and needs to use Medicaid, they will be allowed to keep $150,000 in personal assets such as a retirement account or savings. Currently, Medicaid only allows recipients to have $2000 in savings to qualify for the Medicaid program.

Many seniors go bankrupt trying to pay medical expenses, especially nursing home costs which can decimate even the most fully funded retirement account. It’s good to see that Texas is taking proactive steps to make sure that seniors are rewarded for proper planning when it comes to healthcare insurance in their golden years.

According to CNN, the federal government announced a $13.4 billion bailout for automakers General Motors and Chrysler.

“Allowing the U.S. auto industry to collapse is not a responsible course of action,” President Bush said. The automaker loans are designed to stabilize General Motors and Chrysler until March 2009.

“If the firms have not attained viability by March 31, 2009, the loan will be called and all funds returned to the Treasury,” the statement says.

Is this realistically enough time for these automakers to stabilize their companies and avoid bankruptcy? Almost everyone agrees that the problems that the automakers are facing are systemic and not easily or quickly solved. What about Ford? Is that the one automaker that will be sacrificed to the bankruptcy Gods?

I’ve got a sneaky suspicion that this automaker bailout won’t be enough to stop massive disruptions and potentially
bankruptcy from affecting the auto industry.

According to the Texas Tax Code, homeowners over the age of 65, disabled persons, and the surviving spouse (55 years old or older) of a person previously entitled to a property tax deferment may be able to defer the payment of property taxes. Persons eligible for tax deferment may be entitled to defer payment of their property taxes as long as they own or live in the property. The unpaid property taxes would accrue interest and the deferred taxed would become due within 181 days after the those residing in the property are no longer eligible for the tax deferment.

For example, if you’re 66 years old, live in a high tax area and can’t afford your property taxes you could possibly defer those taxes until you sell your home or until you no longer lived in the property.

With seniors facing a devaluation of their retirement funds and many more barely escaping foreclosure and/or bankruptcy, property tax deferment can be a powerful tool in putting yourself on stable financial footing. Property taxes can be a huge financial burden and many homeowners are forced into foreclosure and/or bankruptcy simply because they cannot pay their property taxes. Speak with a tax professional about how you can use this tax law for your benefit. If you are already delinquent in paying your property taxes, speak with a bankruptcy attorney about how you may be able to discharge delinquent property taxes or create a repayment plan through bankruptcy.

An article on MSNBC asked some probing questions about the viability of an automaker bailout and the ramifications of an automaker bankruptcy. Greg Chaney, Manager of Chacon Autos, the Dallas-based owner of eight automotive dealerships adds his two cents:

“…if there is to be a bailout, I think there should certainly be strings attached, as the status quo is not working. They must present some sort of business plan to a board created by the government prior to any money being lent. We should limit what the money could be used for. It should not be used for increased dividends, executive bonuses, stock buy-backs, and only used to acquire another company if approved by the board. I think a heavy emphasis should be put on new alternate fuel vehicles or high fuel efficiency vehicles. And they should improve the quality of their fleet of passenger cars.”

Chaney has a good point; we need to set limits with these automakers facing bankruptcy before we handout any money. As far as limiting how any bailout money could be used, there’s nothing worse than giving a bailout to companies who insist on continuing their lavish lifestyles at the expense of the taxpayers. Any government bailout should come with deep cuts at the very top, i.e. executive salaries and company stock payouts. But there’s one point that needs to be clear regarding a bailout and the automakers’ ability to avoid bankruptcy…they need to make sure that the money is invested in technology that will make them competitive in the global market and create a business model that is sustainable.

Another point that Chaney made about the fall out of an automaker bankruptcy was very telling:

“We would most likely see much less of a demand for their vehicles. We would be wary of selling or buying any vehicles from that manufacturer, and we would most likely shift much of our inventory to the more stable companies and to the imports.”

In other words, dealerships would begin selling more foreign cars. The only problem with that is that those Americans working for US automakers in bankruptcy would eventually lose their jobs because of decreased sales and profits, further weakening the US economy. That’s something to think about.

(source: http://www.msnbc.msn.com/id/28238392/)

Retirement funds are taking a real beating and that’s just a fact. But many seniors can’t catch a break because they’re required to withdraw a certain amount of money from their retirement fund every year if they are 70 1/2 years old or older. The Worker, Retiree and Employer Recovery Act if approved by President Bush, will temporarily waive the stiff penalty imposed on seniors who fail to withdraw a prescribed minimum from their retirement accounts. Normally, if a senior citizen fails to withdraw the required amount from their retirement account, there is a 50% tax on the amount that should have been withdrawn, plus any income tax that would have been owed if the money had properly been withdrawn. If this bill is passed, seniors who don’t withdraw their required distribution will not suffer from the penalty.

Unfortunately, most senior citizens have already withdrawn their required distributions from their retirement accounts for 2008 or are suffering from the penalty because they failed to withdraw their money. But it is good to see Congress taking steps to protect seniors who are especially vulnerable at this time to the fluctuations in the market that are gnawing away at everyone’s retirement funds.

The Dallas Morning News reports that Bank of America Corp. announced on Thursday that it will shed 30,000 to 35,000 jobs over the next three years as it struggles to absorb the financially battered Merrill Lynch & Co. Although the final and exact number of job losses at Bank of America won’t be known until early 2009, the job losses are expected to affect employees throughout the company.

Citigroup has also experienced job losses this year, sending 75,000 workers to the unemployment line, that’s 20% of its workforce. JPMorgan Chase & Co. is joining the club of banks experiencing job losses by cutting some 7,000 employees in its investment bank and slashing 9,200 jobs at Washington Mutual Inc.

Why are these banks cutting jobs so drastically? Well, the credit business has simply dried up and they aren’t expecting their customers to comeback anytime soon. They see the “recession” handwriting on the wall and they’re digging in for the long run. These banks are cutting their losses, reducing their expenses (employees) and getting very picky about who they do business with (the debtors). In this economic environment, individuals need to follow their lead.

The Star Telegram reports that Overton Centre office complex is facing foreclosure after GE Business Financial Services demanded payment of the $25.3 million mortgage on the property. Despite timely payments by the ownership group for the life of the loan, the multi-million dollar loan is still being called and the group is finding it difficult to refinance. Up until now, commercial foreclosures have been limited to underperforming buildings in poorer areas of the city; but currently many upper-scale commercial buildings are finding it hard to refinance and are being foreclosed on.

Although most individuals filing bankruptcy don’t worry about the state of commercial property or their foreclosures, this type of issue has a ripple affect in the bigger economy. Foreclosed properties become a serious problem in urban areas, causing blight and closure of businesses that depend on these commercial properties for customers. The foreclosure of the Overton Centre office complex is just another sign of the times. Unfortunately, we will see more of these types of foreclosures hitting the Dallas-Fort Worth area in the near future.

The Senate did not pass a $15 billion rescue plan for Automakers this past week and the White House is now considering allocating some the Wall Street bailout funds to shore up the U.S. auto industry, which according to many analysts is on the verge of bankruptcy. Currently approximately $15 billion of the Wall Street bailout fund is not committed to anyone; but to dip into this fund for automakers, the White House administration would be required to notify Congress of its intentions. Congress has the power to block usage of the Wall Street bailout fund and/or to put special conditions on how the money can be used to help the faltering auto industry.

The auto industry is very vocal about their precarious financial position, declaring that they may have only a few weeks before they run out of money and go bankrupt. Any type of collapse or bankruptcy of even one of these big automakers could spell disaster for America’s economy. The major automakers employ almost 25 million workers and it is estimated that more that 3 million Americans would be out of work if even one of automakers declared bankruptcy.

A deal is in the works that could possibly put between $14 billion and $17 billion in loans into the hands of the nearly bankrupt automakers who have been petitioning the government for a bailout. The proposal would be funded by money from an existing loan program designed to help automakers build fuel-efficient vehicles. If this proposal is approved, a "car czar" would be appointed to oversee the nearly bankrupt automakers’ restructuring and repayment of the loans. The "car czar" would also write the guidelines that automakers would be required to adhere to and would be charged with determining if those guidelines are being followed properly. If all goes well, automakers facing bankruptcy could receive emergency loans as early as December 15, 2008. The automakers receiving the bailout will be required to repay the loans by February 2009.

If these automakers are given a bailout, there needs to be a major change in the leadership ranks of these companies. The executives who allowed these companies to come close to the brink of bankruptcy should not be allowed to keep their jobs and benefit from this bailout.

General Motors (GM) has appealed to the government for $18 billion in federal loans, that’s $6 billion more than it asked for just a few weeks ago. GM says that it needs an immediate injection of $4 billion dollar or it may not be able to remain through the end of the year. That has fueled suspicions that GM may be filing for bankruptcy protection. If GM goes down, most likely Ford and Chrysler will be close behind, urgently filing for bankruptcy to protect their assets and save their companies.

In exchange for the financial bailout, GM promised government officials that it would drastically cut jobs, close factories, brands and decrease executive pay. Well you know there’s trouble when the big boys are promising to cut their own pay. Bankruptcy may definitely be on the horizon for these automakers; but it’s not going to be an easy transition. Although, Dallas-Fort Worth is a long way from Detroit, any bankruptcy filed by GM or the other major automakers could spell serious trouble for the Dallas-Fort Worth economy. More new cars are sold in the Dallas-Fort Worth area than in any other part of the country, to the tune of $15 billion a year, creating jobs for residents and serving as one of the main engines of this economy. Although an injection of cash into these automakers may help them in the short run, the jury is still out on whether they should be bailed out or allowed to go bankrupt.

The federal government’s $200 billion bail out for big bankers should come with strings attached that protect the ordinary consumer from predatory lending practices. USA Today did a two-part investigative series on how credit card and mortgage companies profit from ordinary consumer mistakes.

According to USA Today

"…banks sharply boosted credit card rates and fees, then enticed consumers to take out home equity loans to pay off high credit card balances"

Both Senators Chris Dodd and Robert Menendez are calling on credit card and mortgage companies to become more transparent and do more to protect the consumer.

"We’re seeing a confluence of issues," Menendez said. "We have a perfect set of circumstances that will drive not only transparency, but true reform."

Menendez is also demanding limits on credit card interest rate increases and a ban on charging interest on credit card penalty fees. He also wants to make illegal to issue credit cards to unemployed minors and college students.

This is exactly the type of aggressive action we need to take on behalf of Americans facing often overwhelming credit card debt.. The credit card companies have been given too much power to make profits despite the consequences to society. Putting college students into credit card debt creates a society filled with debtors. So many college students today are facing tens of thousands of dollars in credit card debt before they’ve even landed their first real job. It’s time to put the brakes on this practice of giving students credit cards.

According to the Dallas Daily News, Jody Grant, the recently retired chairman of the Dallas-based Texas Capital Bancshares Inc. says that General Motors Corp shouldn’t get a "no questions asked" $25 billion bailout.

"You can’t just hand General Motors a $25 billion or $50 billion check and not have them make major, major, major changes in the way they do things," Mr. Grant says. "A bailout has to have many of the characteristics of a prepackaged bankruptcy, with [U.S. Treasury Secretary] Hank Paulson or his replacement as the ‘bankruptcy judge’ – similar to the rescue of AIG."

His position is that a General Motors bankruptcy with or without government financial assistance is the only long-term solution for the automotive giant. Why? Well, according to Grant, GM is facing financial collapse and is in need of bankruptcy because it makes cars that can’t compete in the global marketplace and have employees whose pay outstrips profits.

The average GM worker earns $78.21 an hour in wages and benefits and even new employees earn around $26.65 an hour. With strong labor contracts, GM needs a traditional bankruptcy which would allow them to cancel labor union contracts and greatly reduce production costs.

I can understand Mr. Grant’s position; but cutting employee salaries will definitely add to an already financially stressed consumer. Most American employees depend on every cent of their paycheck to pay for the rising costs of housing, food and healthcare. The GM situation is definitely lose-lose and a bankruptcy for GM will definitely mean more personal bankruptcy for GM employees.

Dallas-Fort Worth is among several North Texas cities and counties that will get a slice of the $30.3 million from Congress’ Housing and Economic Recovery Act. The money will allow Dallas-Fort Worth to purchase and refurbish foreclosed homes and protect home values in declining neighborhoods that have faced massive numbers of foreclosures. The money will also be used to provide down payment assistance to qualified homebuyers who purchase foreclosed homes.

"This money was designed to acquire, rehabilitate … and make these houses homes again," said Brian Sullivan, a U.S. Department of Housing and Urban Development spokesman. "It’s about making sure these homes don’t become sources of blight in the community where the effect becomes almost viral."

The money is supposed to help neighborhoods at risk; but no money will go to homeowners facing foreclosure. I repeat, this money is supposed to help stop the effects of foreclosure; but NONE of the money is going to homeowners facing foreclosure. How will this money help to save communities if you won’t use the money to save those already in the community facing foreclosure? This is why we need strong bankruptcy laws to protect "existing homeowners" from foreclosure. It is these bankruptcy laws that allow homeowners to stay in their homes that really help neighborhoods remain stable not handouts to investors who make a killing off of flipping foreclosed homes.

The U.S. Treasury Department ended negotiations today with automakers who want government financing for a merger between General Motors and Chrysler. The U.S. Treasury Department is hesitant about investing billions of dollars of taxpayer’s money into a merger that will cause over 90,000 layoffs in the auto industry. Cerberus Capital Management (owner of Chrysler) and GM have been negotiating for weeks but the merger is delayed because of a lack of financing as credit availability dries up. Chrysler and GM are looking at other government institutions for financial assistance.

It’s amazing that automakers have the guts to ask taxpayers for money for a merger that will literally eliminate 90,000 taxpayer’s jobs. Oh the irony. It makes absolutely no financial sense for the government to invest in a deal that will decrease its own revenue by reducing the income of 90,000 taxpayers.

According to Mercury News a Yuba City doctor Arjinderpal Sekhon was indicted on seven counts related of bankruptcy fraud this month. His wife, Daljit Sekhon, also faces five counts bankruptcy fraud.

Prosecutors accuse the 59-year-old doctor and politician of transferring more than $1.5 million in property and income to his wife in an attempt to avoid paying debts. The transfers allegedly happened after Sekhon was ordered to pay $483,000 in restitution (later reduced to $175,000) after losing a sexual harassment lawsuit brought against him by a former employee. Despite the massive transfer, Sekhon filed bankruptcy in 2003 and claimed he only had assets of just over $26,000.

Both Arjinderpal and Daljit Sekhon deny the allegations.

According to The Dallas Morning News social security benefits will increase by 5.8% for 50 million Americans in 2009, the largest increase since 1982. What that means is that the average American retiree will receive an additional $63 in their monthly social security check.

But many retirees won’t feel the benefits of the social security increase because of the high inflation rates of energy and food and not to mention the falling values of many retirement accounts since the Wall Street crisis. Many senior citizens have watched their purchasing power decrease and their nest eggs shrink as Wall Street declines hit their pocketbooks. But fortunately many senior citizens won’t suffer under Medicare premiums this year because for those earning less than $170,000 annually the premium will remain at $96.40 a month at least through 2009.

Because many senior citizens are reeling from the housing crisis, devalued retirement accounts, increased costs of living and mounting debt, it is absolutely essential that seniors assess their financial situations. If you’re a senior teetering on the edge of financial disaster this may be to the time to consider restructuring debts in a Chapter 13 bankruptcy or discharging them in a Chapter 7.

Last week Wall Street suffered devastating losses as the Dow plunged nearly 2,400 points reeling from massive disruptions including the bankruptcy of several major investment firms. But Wall Street rebounded on Monday from last week’s devastating losses after major governments around the world announced various plans to shore up the global banking system, including plans by the U.S. Treasury to purchase the stocks of some banks and save them from bankruptcy. According to the Star-Telegram on Monday all the major indexes rose approximately 7%, and the Dow went up as much as 600 points. Many analysts say that Monday’s gains weren’t a surprise. They also suggested that investors be prepared for another rollercoaster ride in the markets. Investors are still navigating their fears about the banking sector and credit markets. Also, an economy plagued by job losses and record numbers of personal bankruptcy filings could cause the markets to plunge again.

The recent Bail Out bill passed by Congress has failed to address the root of our current economic crisis — the drowning homeowner. Six million people are expected to default on their mortgages in 2008 and 2009. They’re not alone, as housing values plummet, millions of people who have never missed a mortgage payment risk losing tens of thousands of dollars in home equity.

The bailout package passed by Congress does virtually nothing to assist troubled homeowners whose inability to pay has all but sunk the financial markets. It is incredibly disappointing that provisions previously discussed in both the House and the Senate to help homeowners modify their loans and save their homes from foreclosure have been mostly abandoned. These provisions would have struck at the root of the problem and helped to stop the declining home prices, provided relief through the bankruptcy courts, required lenders to offer affordable loan modifications, and unburdened families from taxes associated with restructuring predatory loans.

But instead of expressing a sense of urgency in helping homeowners, Congress has only taken tentative steps to throw borrowers a lifeline. For instance, a new government program called Hope for Homeowners was approved with the aim of helping as many as 400,000 struggling homeowners escape foreclosure. But even before it has started this program is looking more like a false hope than a grand savior. Under the program, the government will insure up to $300 billion in new, affordable loans for borrowers struggling to pay their mortgages. But for homeowners to take advantage of the program, lenders must first voluntarily refinance the delinquent mortgages by reducing the loan balances to 90 percent of the home’s current market value. This would be a win-win situation, allowing lenders to escape the avalanche of foreclosures on the horizon and receive reassurance that they will be paid. But at a Congressional hearing in September, lenders expressed their hesitancy about participating in Hope for Homeowners. Lenders such as JPMorgan Chase, Bank of America, Wells Fargo and CitiMortgage, a unit of Citigroup, all said they would take other steps to help troubled borrowers, like reducing a loan’s interest rate or extending its repayment term. In other word’s they don’t want to eat the cost of reducing loan balances.

This industry has already shown us that their efforts of reducing rates and extending terms have done nothing to stall the cascade of defaults and foreclosures destroying the economy. The problem is that the value of many of these homes are rapidly crashing creating an environment where many home values are significantly less than the mortgage attached to the property. That’s a recipe for disaster. What would you do if you’re home’s value was worth 20% less than the mortgage you were paying? Many homeowners are abandoning their homes with destructive consequences; but still lenders refuse to reduce these home loans to the true value of the property. The mortgage industry had a hand in creating this crisis by selling unaffordable loans to cash strapped homeowners, yet they still have the power to call the shots and dictate the terms of how we will get out of this mess. Congress needs to change this dynamic by amending the bankruptcy code and empowering courts to modify troubled mortgages and save this sinking ship.

Congress approved The Emergency Economic Stabilization Act last week and it was quickly signed by President Bush on Friday. Although the bill contains language requiring the Treasury Department to develop a plan to "mitigate" foreclosures and requires federal agencies to encourage mortgage companies to modify the loans of borrowers in danger of foreclosure or refinance their loans under the Hope for Homeowners plan. The real issue with the Emergency Economic Stabilization Act is that the language protecting homeowners is too broad and does not directly address a specific course of action to help distressed homeowners.

Also, this bill does not give the Treasury the power to restructure toxic loans itself. We all know that if given the "option" to "voluntarily" restructure loans for borrowers, many companies will choose not to take that action. Because of the bills broad language and lack of demands, homeowners are left at the mercy of lenders.

Thousands of Texans are scammed out of their hard earned money every year. Most of us believe that we can spot a scam a mile away; but even the most cautious of us can get taken. That’s why anyone interested in learning about how to protect themselves from scammers should attend this year’s Scam Jam.

The North Texas Crime Prevention Association will present Scam Jam 2008 on Saturday, October 4, 2008 9 a.m. to 1 p.m. at the Conference Center at Collin County Community College, 2800 E. Spring Creek Parkway in Plano.

The Better Business Bureau of Metropolitan Dallas will team with local, state and federal agencies to tell consumers how to protect themselves from all types of fraud. The free program will cover internet fraud, health care fraud, elder fraud, identity theft and counterfeit fraud.

(source: http://www.dallasnews.com/sharedcontent/dws/bus/personalfinance/stories/100208dnbusfraudbrf.3958a0d.html)

Sunday night congressional leaders and the White House created a new bailout bill to present to Congress today. The bill will offer up to $700 billion dollars to Wall Street’s failing institutions. The bill calls for the government, as a shareholder of a large number of mortgage securities, to "encourage" loan servicers to modify more troubled loans and for servicers of mortgages to do all they can to stem foreclosures. But there is no specific language requiring mortgage servicers to adjust mortgage interest rates in the case of ARMs as was the case in Senator Dodd’s proposal. This new proposal is much weaker in protecting homeowners and does nothing to guarantee that homeowners facing a financial meltdown benefit from the $700 billion being doled out to banks and Wall Street corporations.

From the Dallas Morning News - Below are some Texan legislators’ opinions on the bill:

U.S. Reps. Pete Sessions, R-Dallas, and Kay Granger, R-Fort Worth, said the bill was an improvement over earlier proposals because changes were made to accommodate Republican proposals.

The bill "will provide victory on the floors of both bodies if the American people understand what’s at risk," Mr. Sessions said.

Ms. Granger said the new bill was an easier concept for Republicans to support. Ms. Granger noted that the upfront commitment from taxpayers would be $350 billion – instead of the $700 billion requested by the White House.

"Essentially, you’ve cut it in half," Ms. Granger said.

Rep. Michael Burgess, R-Lewisville, said that Republican leaders had "certainly gotten significant concessions going through the weekend."

"But it’s still a pretty unpopular concept back home," Dr. Burgess said.

Several Texas Democrats said they would oppose the bill because it still looks much like the proposal that Treasury Secretary Henry Paulson presented to Congress last week.

"This is a very expensive bailout," said Rep. Lloyd Doggett, D-Austin. "This will be a bailout effectively of the entire world."

Rep. Ciro Rodriguez, D-San Antonio, said he was also inclined to vote against the bill – mostly because it still looks like Washington is mopping up Wall Street’s failures, he said.

Whether "it passes or fails, you’ll see Republicans and Democrats on both sides," Mr. Rodriguez said. "Everybody is having difficulty with this."

Rep. Joe Barton, R-Ennis, called himself a "softly no" on today’s vote. He said many Republicans still had questions about the basic mechanics of the plan – including what kind of businesses and investors would benefit.

"I wouldn’t vote for it in its current form but I’m not adamantly opposed to it," Mr. Barton said. "I would say the winner in the Republican caucus is ‘undecided.’ I really do think that over half the caucus is truly undecided."

"It’s going to be hard to get an informed vote on a bill that people are just now getting to see the contents," Mr. Barton said.

The major news today is the takeover of Washington Mutual by the FDIC. After hopes were high for a financial bailout of Wall Street on Thursday, reality set in last night as no settlement was reached. Washington Mutual was forced to face the music after an FDIC takeover and forced to sell of some assets to JPMorgan Chase, making it the largest bank failure in history. JPMorgan Chase will acquire all of Washington Mutual’s banking operations including $307 billion in assets and $188 billion in deposits.

Both insured and uninsured deposits are safe because they have been purchased by JPMorgan Chase according to the FDIC. Washington Mutual depositors will experience a seamless transition according to Federal regulators.

"There will be no interruption in services and bank customers should expect business as usual come Friday morning," FDIC Chairman Sheila Bair said in a statement.

Bush, Paulson, Bernanke and Congress May Be Looking Out for Wall Street…

But Who Is Looking Out for Herb and Harriet Homeowner?

Dallas, TX – September 24, 2008 – Attorney Reed Allmand is fuming mad. “Unless this proposed $700 billion bailout contains language that helps people stay in their homes and avoid foreclosure, it must be considered an utter disaster and significant failure,” says Allmand, partner in Allmand & Lee, based in Dallas, Texas.

If ever there is a time where the average, hard-working American homeowner needs a little help, it’s now. Allmand observes, “The economy is a mess; the financial markets are near collapse; unemployment is at a 5-year high, and foreclosures are at record levels. To pass this bailout without including the proposals made by Senator Dodd would not only be unreasonable and irresponsible… but also unpatriotic and un-American.”

Allmand, who is Board Certified in Consumer Bankruptcy comments, “Isn’t this what our great Country is built on? We all work together, we all stick together and lend a helping hand to one another in time of need.”

Among Senator Dodd’s recommendations are the ability for homeowners to convert their Adjustable Rate Mortgage to a traditional mortgage with a repayment period of up to 40 years at a prime rate; waiver of credit counseling for debtors in foreclosure; and a waiver of fees or charges on a mortgage loan or secured loan.

W. Reed Allmand is a Board Certified Consumer Bankruptcy Attorney. He has been practicing for 7 years and has handled more than 3,000 bankruptcy filings. In September, 2008, his firm, Allmand & Lee filed 200 bankruptcies. To speak with Mr. Allmand or to schedule an interview, please call (214) 265-0123.

If there ever was a time when the average, hard-working American homeowner needed a little help, it’s now. The economy is a complete and total mess. The financial markets are near collapse! Unemployment is at a 5-year high, and foreclosures are at record levels. But right now those that claim to represent the best interests of the average American working stiff, the small mom and pop shops and the senior citizens who depend on the stability of our markets in their golden years, are selling us up the river. Those at the helm are ready to hand out a no-strings attached blank check to a bunch of jet-setting CEOs who gambled with America’s hard-earned dollars and lost. They want to "rescue" the big banksters while letting the little guy drown. Millions of Americans have faced foreclosure and lost their homes under stricter bankruptcy laws; but no one has thrown them a lifeline. These unfortunate Americans have only been fed the rhetoric of "personal responsibility" while big money corporations feed at the trough of the American taxpayer. That’s why this proposed $700 billion dollar bailout may be unconstitutional and unpatriotic. Unless this proposed $700 billion bailout contains language that helps those facing financial hardship stay in their homes and avoid foreclosure, it must be considered an utter disaster and significant failure.

Legislation introduced by Senator Dodd will give homeowners the option to convert their Adjustable Rate Mortgage into a traditional mortgage with a repayment period of up to 40 years at a prime rate; a waiver of credit counseling for debtors in foreclosure; and a waiver of fees or charges on a mortgage loan or secured loan. This is legislation that will give our economy the real lifeline it needs, not just help a few corporations. Isn’t this what our great country is built on? We all work together, we all stick together and lend a helping hand to one another in times of need. To pass this bailout without including the proposals made by Senator Dodd would not only be unreasonable and irresponsible… but also unpatriotic and un-American.

A decision on this proposed legislation will be made in the next day or two and we need to forcefully show Congress that we will not support a bailout of corporations without a lifeline for the average American. [Click here to download a letter] that you can fax to your senators and representatives. If you have any personal contacts, now is the time to use them. Our message should be clear — no bailout for Wall Street is acceptable without provisions that give homeowners a right to save their homes in bankruptcy.

Click here for Congress members’ contact information
< https://forms.house.gov/wyr/welcome.shtml>.

Click here for Senator’s contact information
< http://www.senate.gov/general/contact_information/senators_cfm.cfm>

Dallas, TX – September 16, 2008 – “Dallas may have been spared Hurricane Ike’s storm surge and battering winds, but make no mistake, we are about to get pounded pretty hard,” says Attorney Reed Allmand, partner in Allmand & Lee, based in Hurst, Texas.

Just from Friday through Monday, in Dallas, gas prices have jumped 20 cents to $3.68 a gallon (according to AAA Texas), and further increases are expected as energy companies have halted operations at oil rigs and refineries. Even President Bush warns we are going to feel some “upward pressure on price” because of the storm.

How will this affect “Joe Dallas” who may already be struggling to make ends meet? Allmand believes, “Unfortunately, this will be the proverbial straw on the camel’s back.” He adds, “The writing is on the wall: we have bankruptcy up 29% from last year, record foreclosures, 5-year high unemployment, a one-day 500 point drop in the Dow, billion dollar companies struggling to survive – and now $4, possibly $5, a gallon gas. For Many Dallas residents, there are simply no more coins to squeeze out of their paycheck. Bankruptcy is inevitable.”

Allmand, who is Board Certified in Consumer Bankruptcy, says skyrocketing fuel prices are stealing people’s food and medicine money because they are faced with having to make an awfully difficult choice: Do I feed my family or buy medicine, or do I pay for gas I need to go to work?

Ultimately, if soaring gas prices are going to force bankruptcy filings, Allmand hopes it happens quickly, and sooner rather than later. Is it to promote his own pecuniary gain as a bankruptcy attorney? Allmand says no. “When you’re struggling just to meet necessary expenses, you want to quickly stop the bleeding and get a fresh start. Many people will put off filing for bankruptcy and will stretch out this period of financial difficulty for as long as possible. This is even more harmful. They end up digging themselves deeper into trouble and make it even harder to get out.” Instead, Allmand insists people shouldn’t be too proud or ashamed to accept bankruptcy protection.

“I mean how long do you wait until you say it’s time to start fresh? When the next hurricane hits the Texas Gulf, or gas is at $7 or 10 a gallon gas?” Allmand asks rhetorically.

W. Reed Allmand is a Board Certified Consumer Bankruptcy Attorney. He has been practicing for 7 years and has handled more than 3,000 bankruptcy filings. In September, his firm, Allmand & Lee filed 200 bankruptcies. To speak with Mr. Allmand or to schedule an interview, please call (214) 265-0123 ext 225.