Editorial
Bankruptcy laws were strengthened in 2005. Many contend it was no accident, although it appeared to be unjustified at the time. Today’s economy, job losses, and the failed subprime experiment had risks associated with the economy, and bankruptcy changes insulated the financial sector while the government experimented with mortgages. Other changes in life also effect the equasion.
A month ago, The Wall Street Journal reported that Clinton ally and former HUD Secretary Henry Cisneros grossed more than $5 million in stock sales and board compensation from Countrywide Financial, one of the nation’s largest subprime lenders. Mrs. Clinton’s campaign manager and longtime aide Maggie Williams made US$200,000 by working on the board of Delta Financial Corp., a subprime lender. The Williams headline was the first article to hit the news. Cisneros is simply a friend, or ally, but between the two articles people are beginning to wonder about CLinton’s sincerity.
One point is perfectly clear after the subprime debacle, which is the need for federal-level regualtors that will actually do something. Finger pointing is frustrating for consumers and mortgage holders. Recently we received a report of a mortage holder who was bounced from the OCC to the FTC, later to be told that the FTC gathers complaints but does not take action on individual complaints.