Cleveland City Council passes resolution supporting Occupy Wall Street principles

[wiphan]

Originally Posted by Riot

Nobody wants to "eliminate big banks"

"Prosecute the big banks" ? You bet! And prosecute the small banks that also break the law with illegal foreclosures and illegal lending practices.

That will leave the banks that work within the law to make those loans.

The problem with a lot of the issues and with more government regulation of the banking sector is it will limit lending, limit the banks ability to take on risk, and limit any ability for any type of creative lending. There are a lot of good loans that banks would like to make but are afraid to because they do not fit in the box or under strict guidelines that are currently in place or could be put in place. This is hampering the economy right now with small businesses and keeping a lot of cash in the big companies because they are afraid that won't get the $ from the bank when they need it.

I agree with prosecution of illegal practices of any business, but the problem I believe is further regulation is not the answer. Check out what is going on in the commonwealth of Mass. right now. There are mortgage companies that believe that it is no longer a viable place to do business. How is that good for the consumer? Prosecute the criminals and help companies suceed that do things the right way, but in case you haven't noticed the Dodd Frank bill has already turned the banking world upside down. Many of the things in the bill actually have or will become negative for the consumer (higher costs). I find it hilarious that Barney Frank is involved with this when he was one of the main people who are responsible for creating many of the programs that caused these issues.

[Riot]

Originally Posted by wiphan

The problem with a lot of the issues and with more government regulation of the banking sector is it will limit lending, limit the banks ability to take on risk, and limit any ability for any type of creative lending.

Good. Lending should be limited to legal and fair, above-board activities for both parties.

The banks are threatening, "if you regulate us, we'll limit lending, or move away from certain states."

Okay. Buh-bye. Other entities that will work within the stricter regulatory framework that will help prevent another financial crisis like the one you just caused by your unregulated activities will take your place.

[wiphan]

Originally Posted by Riot

Good. Lending should be limited to legal and fair, above-board activities for both parties.

The banks are threatening, "if you regulate us, we'll limit lending, or move away from certain states."

Okay. Buh-bye. Other entities that will work within the stricter regulatory framework that will help prevent another financial crisis like the one you just caused by your unregulated activities will take your place.

There is a point where too much regulation is not good for the consumer. As far as mortgage lending goes most good banks worked within the regulations and programs that were set forth by FHA, Fannie Mae and Freddie Mac. Some banks didn't offer Negative Amortization loans(even though all competitors were and they lost a lot of business and $ at that time). Now it is time to blame the banks for these issues even though the government along with Fannie and Freddie created them. It was the banks fault that the government wanted everyone to own a home. It was the bank's fault that the government along with Fannie and Freddie offerred no money down mortgages. It was the bank's fault that some customers used their home as a piggy bank. It was the bank's fault that some customers did loans that they couldn't afford, but told the bank they could. Where is the personal responsibility of the customer? The bank would give me a loan to buy a $60k truck if I wanted it. Does that mean that I should buy it just because the bank will give me the loan? People need to learn to take responsibility for their own actions and stop blaming others. If you made a bad financial decision you need to live with that. It happens. Life Sucks, move on. Illegal activities are different that strict regulation. Strict regulation WILL affect the consumer. The good banks will survive regardless and just pass on the costs to the consumer. What you fail to understand is that the pendulum has swung too far in the opposite direction and you want it to swing farther. Things needed to change and they have and they have drastically, but more and more regulation is not the answer. Personal responsibility is. Stop blaming others

[Riot]

Originally Posted by wiphan

There is a point where too much regulation is not good for the consumer.

The consumers will let the banks know when it gets to that point, I'm sure.

As far as mortgage lending goes most good banks worked within the regulations and programs that were set forth by FHA, Fannie Mae and Freddie Mac. Some banks didn't offer Negative Amortization loans(even though all competitors were and they lost a lot of business and $ at that time). Now it is time to blame the banks for these issues even though the government along with Fannie and Freddie created them. It was the banks fault that the government wanted everyone to own a home. It was the bank's fault that the government along with Fannie and Freddie offerred no money down mortgages. It was the bank's fault that some customers used their home as a piggy bank. It was the bank's fault that some customers did loans that they couldn't afford, but told the bank they could. Where is the personal responsibility of the customer? The bank would give me a loan to buy a $60k truck if I wanted it. Does that mean that I should buy it just because the bank will give me the loan? People need to learn to take responsibility for their own actions and stop blaming others. If you made a bad financial decision you need to live with that. It happens. Life Sucks, move on. Illegal activities are different that strict regulation. Strict regulation WILL affect the consumer. The good banks will survive regardless and just pass on the costs to the consumer. What you fail to understand is that the pendulum has swung too far in the opposite direction and you want it to swing farther. Things needed to change and they have and they have drastically, but more and more regulation is not the answer. Personal responsibility is. Stop blaming others

What you fail to understand is:

It is the banks fault that they illegally foreclose on homes, and put people on the street, for which they do not own the mortgage.

It is the banks fault that they cheat and lie, switching documentation and signatures, to give loans to people that did not qualify.

It is the banks fault that they dumped terrible mortgages on others pretending they had value.

It is the banks fault when they advise homeowners to enter the government mortgage assistance program, then use the homeowners following of their direct instructions to foreclose on the homeowner.

It is the banks fault that a homeowner, attempting to refinance their home, cannot get accurate information or response from banking officials.

Stop blaming the victims.