Financial Literacy for Wall Street
Jul 31, 20204.6K Shares2.3M Views
Remember when the subprime crisis first broke out last fall, and the Bush administration’s first responsewas to suggest that people read the fine print on their mortgages and take financial literacy courses?
It would not be such a bad idea for Wall Street to do the same now.
There are plenty of quality community colleges, for example, and there’s probably still time to sign up for a course each week in understanding investments.
Tanta at Calculated Risk - a mortgage broker by trade - has some additional thoughtson this. She’s among a growing number of people calling for the bailout to include some punitive measures for Wall Street, or some provisions to help homeowners.
One would be to allow bankruptcy judges to modify mortgage loans — so the borrower would owe the fair-market value on the home, not the inflated loan amount.
Here’s Tanta:
“„What I really really like is the idea of subjecting CEOs to the same petty humiliation everyone else gets treated to. I suggest that for every separate asset these CEOs sell to the government, they be required to write a Hardship Letter over a 1010 warning (that’s a reference to the statute forbidding lying in order to get a loan) explaining why they acquired or originated this asset to begin with, what’s really wrong with it in detail, what they have learned from this experience, and what steps they are taking to make sure it never happens again.
“„Furthermore, the Treasury Dept. will empanel a committee of the oldest, most traditional, and bitterest mortgage-loan underwriters — preferably those downsized to make way for automated underwriting systems — to review these letters and opine on their acceptability.
Look for more calls for Wall Street to take some hits in return for $700 billion from taxpayers.
Camilo Wood
Reviewer
Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing.
Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers.
Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
Latest Articles
Popular Articles