One of the main problems in trying to apply a judicial resolution to the recent financial collapse is that financial transactions that are voluntarily entered into by two parties with full knowledge that one or both might suffer an injury or loss are virtually impossible to describe as fraud. If a person agrees to abuse, it's no longer abuse, just as when a person pleads guilty, the conviction is almost impossible to reverse, even when there is evidence that the plea was coerced, because the individual agreed. "Informed consent." It's a get out of jail free card.
In other words, it's hard to correct injustices after the fact. Never mind that financial injury is not really real. Money is a token and the transactions are abstractions. Which is why, if equity is desired, the relationships have to be structured fairly ahead of time. That's what the Consumer Protection Bureau is supposed to achieve. The word "consumer" isn't quite correct, but it is familiar to people who are the recipients in a transaction. "Receiver" may be more accurate, but probably wouldn't be appreciated. Being a recipient is laden with negative implications.
The lenders in the collapse of 2008 knew what they were getting into and the borrowers should have known. After all, the borrowers were signing away their rights, as this "Waiver of Rights," which was appended to notes demonstrates:
Waiver of RightsThis particular waiver was employed by the Oglethorpe Bank of Brunswick, Georgia, which is one of some 50+ Georgia banks that has gone bankrupt, but other financial institutions used similar forms. Note that the borrower is granting the lender a power of attorney. That's the same kind of authorization the unjust steward in the biblical parable had to write off his master's debtors' debts. That's the same kind of power we have given to the Congress to manage our currency. And, two thousand years later, the only viable response to misuse is the same -- fire their asses!
By execution of this Instrument Borrower expressly,
(1) Acknowledges the Lender's Right to Accelerate the debt and the power of attorney given hereby to Lender to sell the premises by nonjudicial foreclosure upon default by borrower without any judicial hearing and without any notice other than such notice as is specifically required to be given under the provisions of said Deed to Secure Debt;
(2)Waives all rights which Borrower may have under the Fifth and Fourteenth Amendments to the Constitution of the United States, the various several states, the Constitution of the State of Georgia, or by reason of any other applicable law, to NOTICE AND TO JUDICIAL HEARING prior to the exercise by the lender of the right or remedy herein provided to Lender, except such notice as is specifically required to be provided in said Deed to Secure Debt;
(3)Acknowledges that Borrower has read this deed and its provisions have been fully explained to Borrower and Borrower has been afforded the opportunity to consult with counsel of Borrower's choice prior to executing this deed;
(4)Acknowledges that all Waives of the aforesaid rights of Borrower Have Been Made Knowingly, Intentionally and Willingly by Borrower as part of a bargain for loan transaction;
(5)Agrees that Borrower's right to notice shall be limited to those rights to notice provided by this deed and no other; and
(6)Agrees the provisions hereof are incorporated and made part of the Deed to Secure Debt.
DO NOT SIGN THIS FORM UNTIL YOU HAVE READ OR HAD IT READ TO YOU; AND UNTIL YOU FULLY UNDERSTAND ITS MEANING AND AGREE TO ITS TERMS.