Where’s Obama’s Stick on Cramdown?
Another observation about the troubles facing Senate Democrats as they struggle to push consumer-friendly cramdown legislation through the upper chamber this
Jul 31, 20201.2M Shares16.7M Views
Another observation about the troubles facing Senate Democratsas they struggle to push consumer-friendly cramdown legislation through the upper chamber this week: The Obama administration has been little help twisting arms to get the legislation passed.
Yeah, President Obama came out in February and reiterated his support for the idea of empowering bankruptcy judges to reduce the terms of primary mortgages to prevent foreclosures. But it was just an aside amid a much longer speechoutlining the many financial incentives the government would provide to the industry for modifying loans voluntarily.
And more recently, Treasury Secretary Tim Geithner offered a less than enthusiastic endorsementof the bankruptcy proposal. Pressed this month by Elizabeth Warren, who heads the congressional panel overseeing the Wall Street bailout, Geithner declined to say that the cramdown legislation is essential to the administration’s plan to stem foreclosures, which are on the rise. Instead, Geithner said only that “the president is supportive of this.”
That, of course, is different than saying that Geithneris supportive of it. And clearly, Obama hasn’t gone out of his way to press the banks to accept the bankruptcy change, as he did, for example, with the various credit card reforms that are currently flying through Congress.
With the foreclosure crisis getting worse each month, would it be worth another White House pow-wow with Wall Street executives to get them on board? The roughly 1.7 million families estimated to keep their homes as a result of the bill would probably appreciate the gesture.
Paolo Reyna
Reviewer
Paolo Reyna is a writer and storyteller with a wide range of interests. He graduated from New York University with a Bachelor of Arts in Journalism and Media Studies.
Paolo enjoys writing about celebrity culture, gaming, visual arts, and events. He has a keen eye for trends in popular culture and an enthusiasm for exploring new ideas. Paolo's writing aims to inform and entertain while providing fresh perspectives on the topics that interest him most.
In his free time, he loves to travel, watch films, read books, and socialize with friends.
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