During the holiday season, our thoughts often turn to helping those in need. Also, as partisan Democrats, our thoughts often turn to helping the D’s win elections.
Those two concepts fit together quite nicely. With Democrats still (largely) in control of the federal government, the donkeys will perform better in elections when more Americans believe they have been helped by the Democrats running the government. As such, I have an action item for you that can help the government make a tangible, positive difference the lives of many Americans who are being preyed upon by big banks.
The action is a petition to the leaders of the Treasury Department, the Federal Reserve, and FDIC supporting the FDIC’s decision to craft new rules cracking down on banks who are hurting millions by charging illegal fees and carrying out improper foreclosures. You can sign the petition here.
The background of this fight involves a regulatory dispute between the Federal Reserve and the FDIC. Zach Carter has the story:
Top policymakers at the Federal Reserve are fighting efforts to rein in widely reported bank abuses, sparking an inter-agency feud with the FDIC and the Treasury Department. The Fed, along with the more bank-friendly Office of the Comptroller of the Currency, is resisting moves to craft rules cracking down on banks that charge illegal fees and carry out improper foreclosures. The FDIC supports such rules, according to an FDIC official involved in the dispute.
The new regulations would rein in debt collection, loan modification and foreclosure proceedings at bank divisions called "mortgage servicers." Servicers have committed widespread fraud in the foreclosure process. While the recent robo-signing of fraudulent documents has received the most attention, consumer advocates have complained about improper fees and servicer mistakes that lead to foreclosure for years.
To put it simply, some banks are engaged in widespread acts of fraud to rip off millions of average Americans. The FDIC is trying to stop this fraud, but the Federal Reserve is resisting the FDIC’s efforts. So, we are joining with numerous financial blogs, key Wall Street reform insider types, and members of Congress led Brad Miller in taking the FDIC’s side. You can join in by signing the petition here.
This is a hugely important inter-agency fight that impacts millions of Americans and, as such, will also impact Democratic electoral efforts. If we make real inroads fighting this fraud, it becomes a lot easier to make the case to the American people that having Democrats in charge of government is a good thing.
Our combined voices on this will make a lot of noise in an inter-agency fight that usually flies under the radar, even to most political activists. Past efforts like these helped the FDIC Chair Sheila Bair win some inter-agency regulatory fights of this sort in 2010. With your help, we can do it again in 2011.
So please, sign the petition here. You signature will be delivered to the heads of the all the key regulatory agencies.