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Saturday, November 21st, 2009

Obama Administration Creates Task Force to Fight Financial Fraud

The White House announced in a press release on November 17th that President Obama has made an executive order to create a Financial Fraud Enforcement Task Force. Part of the reason for the executive order, it seems, is the number and complicated nature of various financial fraud cases related to the current economic crisis.

Sources indicate that the goals of the force are to prevent abuses in the financial sector that could lead to economic turmoil in the future as well as to bring to justice those responsible for the current state of affairs. This task force will reportedly replace the Corporate Fraud Task Force implemented by the Bush administration after the scandal at the Enron Corporation.

The following groups will fall under the wing of the task force:

  • Mortgage lenders & modifiers: Groups responsible for initiating and altering the terms of home loans, much maligned for their role in the current crisis, will be under the task force’s watchful eye.
  • Securities law: This is the branch of law that regulates money, stocks and bonds.
  • Stimulus spending: Government funds intended to perk up the economy, too, will be overseen by this group.
  • Government bailout of the financial sector: This especially controversial bailout has been identified specifically as a target for the task force.

Too Much Fraud?

In recent years, growth and innovation in the financial sector (including such innovations as subprime mortgages) have proven to be more than the Securities and Exchange Commission (which is responsible for regulating stocks, bonds and the like) can handle.

And reports indicate that, despite concerns about national security, officials in the FBI and Department of Justice have been shifting resources away from terrorism cases and to financial fraud cases.

The hope, apparently, is that this group will form a more specialized unit, able to deal exclusively with cases of financial fraud.

The Next 30 Days

The Task Force will reportedly hold its initial meeting within the next month. Headed by Justice Department officials, it’s supposed to include help from the Department of Treasury, Department of Housing and Urban Development and the Securities and Exchange Commission, among others.

Geithner: Beyond Prosecution

Treasury Secretary Timothy Geithner has been quoted as asserting that prosecuting fraud cases after the fact is not workable; he apparently sees the Task Force as a comprehensive reform for financial oversight.

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Posted in Legal Info | 2 Comments »

Thursday, April 30th, 2009

Sad Day for Many Homeowners: Senate Slaps Down Anti-Foreclosure Bill

The Senate voted 45-51 against Dick Durbin's anti-foreclosure bill. Twelve democrats opposed the bill.

We were hoping the Senate would help deal with the massive foreclosure epidemic and pass the bill, which would have allowed bankruptcy judges to adjust the terms of mortgages of people who were facing foreclosure, among other things.

Obama made public statements saying the bill was an important aspect to helping the economy; however, it's been speculated that he didn't throw in 100% support because banks  opposed to the bill's passage.

Here's a quote from the Associated Press article posted on the Kansas City Star on Obama's support or lack thereof:

"Obama long has backed the proposal to give debt-ridden individuals the option of turning to bankruptcy to save their homes. He cited that support last fall as he privately lobbied skeptical Democrats to back the $700 billion Wall Street bailout. And once he was president, he had promised, he would push for its passage."

If your home is in danger of being taken away, learn how bankruptcy may stop pending foreclosure.

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Posted in Legal Info, Mortgage Foreclosure | No Comments »

Thursday, November 13th, 2008

Bush & Obama Front Line: What to Do About the Car Industry?

In his first press conference since he was declared the 44th president, Obama said that the U.S. auto industry is “the backbone of American manufacturing” and that the Bush administration should “do everything it can to accelerate the retooling assistance”.

At their Nov. 11 White House meeting, Obama stayed on this track and urged Bush to set aside $25 billion of the existing $700 billion bailout package for the limp auto industry.

It was reported that Bush “balked” at the idea of extending the rescue bailout package to businesses other than the banks and financial institutions.

But Bush reportedly told Obama that he was open to faster implementation of the separate $25 billion car-industry loan package that passed by Congress in September, which was designed to encourage the creation of more fuel-efficient cars.

He said he was hesitant to provide any more money than that.

Meanwhile, the Detroit-based auto industry is begging for help.

Stay tuned to Total Bankruptcy for more information as it develops.

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Posted in Bankruptcy and the Economy | No Comments »

Wednesday, October 1st, 2008

In Foreclosure? Know Your Voting Rights

Ohio’s Secretary of State, Jennifer Brunner, is reminding Ohio election boards that voters who have their homes in mortgage foreclosure are indeed allowed to vote in the upcoming November presidential election. The same applies for any residents who have a pending foreclosure, and filed bankruptcy to protect their homes.

Last week she told the election officials that a person’s voting registration status can’t be contested because their property may be in foreclosure. She added that all voters who are challenged have the right to a hearing.

Obama for America, the Democratic National Committee and some Michigan voters filed a federal lawsuit seeking an injunction prohibiting Republicans from challenging voters who have homes on foreclosure lists.

For more information on the lawsuit and mortgage foreclosure and voting rights, check out Total Bankruptcy’s recent article, Obama Campaign Files Lawsuit over Foreclosure Challenges.

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Posted in Mortgage Foreclosure | No Comments »

Wednesday, July 9th, 2008

Obama Highlights Bankruptcy Reform as Part of Economic Agenda

Democratic presidential candidate Barack Obama spoke out against provisions in the 2005 BAPCPA that unfairly weigh on certain segments of the population, and proposed changes to bankruptcy law that would seek to level the playing field for individuals in these classes.

Specifically, he proposed providing special provisions for military families and seniors facing bankruptcy.

Military families would gain the advantage of a "fast-track bankruptcy practice" under these proposals, with easier paperwork and documentation and a greater bankruptcy exemption for their homes.

Similarly, seniors would receive a larger homestead exemption.

In a reversal of former President Ronald Reagan's famous phrase, Obama called the current economic downturn in the country a result of the fact that "pain trickles up" in the country, meaning that laws on mortgage lending, payday lending and "questionable banking practices" that target lower-income families and individuals have led to a widespread crisis.

For more on presidential candidates, personal finance and filing bankruptcy, be sure to visit www.TotalBankruptcy.com.

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Posted in Bankruptcy News and Events | 1 Comment »