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 …

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The Wall Street Reform and Consumer Protection Act (H.B.  4173) is under consideration by Congress.  One of the most important aspects of this proposed legislation is the changes to bankruptcy law that will allow bankruptcy judges to modify toxic mortgages.  A similar proposal was defeated in the Senate earlier this year; but we’re hoping that this time legislators will give American …

Tags: Bankruptcy foreclosure Law Mortgage modification The Wall Street Reform and Consumer Protection Act United States

… money are still up to their old tricks and risky investments.

The article said:

“That Wall Street is making money again in essentially the same ways that thrust the banking system into chaos last fall is reason for concern on several levels, financial analysts and government officials say… And they still make bets that, in the aggregate, are worth far more than the capital they have on hand to cover against potential losses.”

Taxpayers have sunk billions of dollars into …

Tags: Banking Services Creditor Wall Street

… 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 …

… payments from the rapper as he repaid a loan related to a planned hotel development, the Wall Street Journal reports.

Jay-Z’s foreclosure dispute is not too different from the foreclosure problems of everyday homeowners.  Many mortgage lenders fail to respond to mortgage modification requests in a timely manner and even blame the borrower for their negligence.  Unfortunately, for many individual homeowners, they don’t have the a legal team on retainer to tackle their …

… not all.

To recover the rest, I’ve proposed a fee on the biggest banks.    Now, I know Wall Street isn’t keen on this idea.  But if these firms can afford to hand out big bonuses again, they can afford a modest fee to pay back the taxpayers who rescued them in their time of need. 

I hope that President Obama and his taskforce will take the time to consider the need to parlay some of that money into helping homeowners facing foreclosure.  Many homeowners facing …

… Bankruptcy and financial firms have been a hot topic since the financial crisis first rocked Wall Street in 2008.  But when it comes to financial firms, bankruptcy has unfortunately always been seen as the “black hole” that doesn’t repair financial firms, but instead dissolves them.  CIT Group proved that common notion about bankruptcy to be false. When CIT Group first filed bankruptcy, the consensus was that they would not survive the bankruptcy process.  But with the help of a …

… American taxpayer.  In the eyes of those claiming that the recession is over, if the banks and Wall Street are doing well, then America is doing well. We all know that just isn’t the truth.

The Wall Street bankers received the help they asked for and now  they are doing so well that they can repay their loans and return to their old ways.  But what about the American homeowner?  Many of them are still facing foreclosure and they haven’t received the help they thought the bailout …

… expressed their outright opposition to a mortgage bankruptcy “cram-down” amendment in the Wall Street Reform and Consumer Protection Act that would give homeowners the power they need to modify toxic mortgages in bankruptcy.

It shouldn’t surprise the average American homeowner, especially those facing foreclosure, that the letter from the mortgage bankers opened with a blatantly false statement:

Our primary goal should be to help keep more families in their homes and to …

… are even larger than bonuses during 2008.  I guess it’s been a good year—for the banks.

Wall Street banks are on track to pay $26 billion in bonuses for 2009 performance…That’s up from $18.4 billion in 2008.

When the foreclosure and credit crisis threatened to crush banks such as Goldman Sachs, JP Morgan, Morgan Stanley and Bank of America, the American taxpayer and the taxpayers of other countries rushed to their aid with bailouts.  In return, we have seen foreclosures …

… The government would use some of the interest they collect from payments on the $700 billion Wall Street bailout to give unemployed homeowners low-interest loans for a period of 12 to 24 months. Homeowners facing foreclosure because of  unemployment would be eligible; but they would need to demonstrate that there is a high likelihood of them securing a new job that would earn enough money to repay the loan.

Possible Problems With This Program

As I always say, the devil is in the …

According to an article in the Wall Street Journal, revenues received by heirs of the Howard Hughes estate are caught in bankruptcy limbo because land that generates profits for the heirs is entangled in the General Growth Chapter 11 bankruptcy. When Hughes died in 1976, he was childless and without a will so his estate was initially divided amongst only a few cousins.  However, now the Hughes estate has over 1,000 heirs …