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Bank lobbying e-mail: Quid Pro Quo to kill mortgage modification bill

This piece comes from Sam Stein at the Huffington Post

The allegation of a quid pro quo was based on an email that [Sen Dick] Durbin received last spring after his amendment to allow judges to modify mortgages for homeowners who enter bankruptcy was defeated on the Senate floor. During a discussion to promote publicly-financed elections on Friday, the Illinois Democrat relayed that, shortly after the defeat of his "cram-down" amendment, a "banker friend" forwarded him the note from Tanya Wheeless, president & CEO of Arizona Bankers Association.

"I have contacted the market presidents for each of the three banks (Chase, Wells and Bank of America) and explained that in my humble opinion it’s a big mistake to cut a deal with Durbin and alienate our (in Arizona) Senator," Wheeless’s email reads. "I also told them that I thought this would drive a wedge in our industry. [Senator Jon] Kyl has pointedly told them not to make a deal with Durbin and then come looking to Republicans when they need help on something like regulatory restructuring or systemic risk regulation."

Just as I said in my post on Barney Frank yesterday, lobbyists are all over this process. They have very specific interests to protect. That makes them highly motivated and, in turn, makes real reform unlikely.  If you are wondering why banks got billions in bailout money and homeowners have received little in assistance, this demonstrates why.

A copy of the e-mail is attached at the link below.

Source

Durbin: Banks And GOP Made A Pact To Kill Regulatory Reform – Huffington Post

About 

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty years of business experience. He is also a regular economic and financial commentator on BBC World News, CNBC Television, Business News Network, CBC, Fox Television and RT Television. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College. Edward also writes a premium financial newsletter. Sign up here for a free trial.