Bernanke Plugs More Help for US Homeowners

So why haven't homeowners been bailed out?

(NEWSER) - If you were trying to get a loan in southern Florida in 2007, bankers like James Theckston were there to help. "If you had some old bag lady walking down the street and she had a decent credit score, she got a loan," Chase's then-regional VP of Home Finance tells Nicholas Kristof. And Theckston says there's no doubt that though borrowers bear some responsibility for what Kristof describes as their "harebrained decisions," the bankers "were far more culpable," writes the New York Times columnist. More»

Court forces Fed to release info

(NEWSER) - When the Federal Reserve opened its “discount window” at the height of the financial crisis, a lot of foreign banks lined up. The 97-year-old program hit an all-time high during October 2008, and during its peak week, 70% of the $110.7 billion doled out went to foreign banks, according to data the Fed has long tried to keep secret. Bloomberg obtained the documents after winning a court case over its Freedom of Information Act request. More»

Felix Salmon isn't thrilled with Fed chief's op-ed

(NEWSER) - The Fed's controversial plan to buy $600 billion worth of Treasuries to stimulate growth has brought the phrase "quantitative easing" out from the obscurity of financial blogs. Will it work? Two columns today on the subject from Ben Bernanke himself in the Washington Post and Felix Salmon at Reuters :

• Bernanke: The Fed chief offers three examples of how the move will help: It will lower mortgage rates and thus help prospective homebuyers or those who want to refinance; it will encourage business investment by lowering corporate bond rates; and it will raise stock prices, which will in turn boost consumer wealth, confidence, and spending "in a virtuous circle."

Will examine debacle's effect on real-estate market

(AP) - Federal banking regulators are examining whether mortgage companies cut corners on their own procedures when they moved to foreclose on people's homes, Federal Reserve Chairman Ben Bernanke said today. "We are looking intensively at the firms' policies, procedures, and internal controls," Bernanke said. "We take violations of proper procedure very seriously." Preliminary results of the probe are expected next month. More»

Banks ignored warning signs, hired 'Burger King kids'

(NEWSER) - As the foreclosure crisis continues, the stories of clueless employees just get worse. Swamped with delinquent customers, banks hired inexperienced walk-ins one former executive called “Burger King kids,” who, for years, processed mortgages at an astonishing rate. Overwhelmed employees not only signed papers without reading them—they sometimes tossed paperwork into the trash. Some banks even outsourced foreclosure operations. That’s why, employees, executives, and regulators tell the New York Times , this crisis—shocking as it may be to the general public—was no surprise to insiders. More»