Skip to main content

View Diary: Can a Small California City Take on Wall Street - And Survive? (298 comments)

Comment Preferences

  •  Good news seeing a plan come together (2+ / 0-)
    Recommended by:
    jpmassar, Phoenix Woman

    from a bit earlier comment

    Wall Street is pissed, threatening and I like it.  
    Eminent Domain is being used to take back from banks what they stole using a variety of scams eg. junk loans (fraudulent mortgage backed securities) and other wall street tricks of the “trade”, leaving working folk to pay for their avarice as wall street then dodge paying taxes to top that move.

    ..a growing number of cities—with the support of community groups and unions—are taking things into their own hands. Thanks to a legal strategy initially formulated by Cornell University law professor Robert Hockett, city officials have discovered that they can use their eminent domain power—which they routinely use to purchase property for sidewalks, infrastructure, school construction and other projects—to buy underwater mortgages at their current market value and resell them to homeowners at reduced price and mortgage payments.
    Richmond California is where this effort is happening.
    In almost every part of the country, entire neighborhoods—and in some cases, whole cities—are underwater. They are not victims of natural disasters like Hurricanes Katrina and Sandy. […People are] drowning in debt, victims of Wall Street’s reckless and predatory lending practices.
    Wall Street threatens:
    The Wall Street lobbyists have threatened to mire local governments in expensive lawsuits if they use eminent domain to take troubled mortgages […] ..lobbyists have also warned local officials that if they go through with these plans, banks will increase the cost of future borrowing or even shut down credit entirely. They couch these warnings as if they were mere predictions. But they’re threats—part of a coordinated, industry-wide credit boycott.
    But -  tough..:
    This is another form of “redlining” (lending discrimination), which violates the nation’s fair lending and antitrust laws.
    This story is not new, as #OWS was on it this time last year, but now it’s happening - and was prolly covered here @ Daily Kos that I missed – but still

    Cool

    Thx jpmasser

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site