In a time when bank executives would rather eat their own children than give one penny of shareholder profit to help consumers and the economy at large, one bank has stepped forward to support legislation that is way overdue. Citibank has agreed to support changes in bankruptcy laws so that primary residences can be protected in bankruptcy court by judges who can write the mortgages into debt repayment plans.
It’s absurd that someone can file for bankruptcy and protect their motorcycle, vacation home or boat but can’t save their primary residence. This has long been a hold out of the mortgage lenders for no other reason than sheer greed. Why should they take a risk? Loans are suppose to be all profit and no risk for them right? And when the gamble doesn’t pay off we’ve seen what happens. They cry to the Fed like whimpering little children who aren’t getting their way. And big daddy Fed is more than happy to quiet them with $700 billion dollars. Thinking about it makes my stomach worse than it already was fighting this Crohns flare up. I will continue to close all my entries about financial institutions with the same ‘ol quote from Dr. Willis Martin of Rocky Mount who said to me “Son, the bank is not your friend”.