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View Diary: BREAKING: Bank of America BROKE Deal, Nevada Suing UPDATED (118 comments)

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  •  Only if state AG's prosecute (9+ / 0-)

    It remains extremely doubtful we will see anything from the federal level.

    "My father always told me that all businessmen were sons of bitches, but I never believed it until now." - JFK during the 1962 Steel Crisis

    by Betty Pinson on Tue Aug 30, 2011 at 04:58:28 PM PDT

    [ Parent ]

    •  A little background on this (2+ / 0-)
      Recommended by:
      ohmyheck, TimmyB

      Predatory Lenders' Partner in Crime - By Eliot Spitzer, February 14, 2008

      In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative. The OCC also promulgated new rules that prevented states from enforcing any of their own consumer protection laws against national banks. The federal government's actions were so egregious and so unprecedented that all 50 state attorneys general, and all 50 state banking superintendents, actively fought the new rules.

      True this was about state laws affecting national banks, not about their ability to sue, but don't be surprised...

      The quote does not by any means tell the whole story, I recommend reading the entire article.  Also, the OCC led the charge to repeal Glass-Steagall in 1999, saying the 1937 law was out of date and needed 'modernizing.'  To then invoke the 1863 Bank Act is beyond hypocritical.

      Still using my fake name...

      by Rex Freedom on Wed Aug 31, 2011 at 05:04:16 AM PDT

      [ Parent ]

    •  Only if the Fed AG steps aside. (0+ / 0-)
      •  Not true (0+ / 0-)

        Real estate law and procedure is traditionally a state/local matter. There has never been a federal supremacy claim that would override it, though the banks obviously wish there were so they could buy their way out of the anger at the local level.

        Here is one place the Tenth Amendment actually has some meaning.

        IMO the Feds do not have the authority to force states to forfeit state law remedies.

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