Business Week has a great (or sad) story detailing the reactions of the banking industry to the foreclosure crisis, from 2006 to the present.
Banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problem. Industry lobbyists are…working overtime to whittle down legislation…that would give bankruptcy courts the authority to shrink mortgage debt.
The banking industry seems intent on arguing that keeping people in their homes, with modified mortgages, will cause a loss to the bank. Wake up: the loss has already occurred.
The only remaining issue is whether we address that loss by foreclosure or loan modification.