The Federal Bailout of Banks Continues

Many of the largest banks in the country have been paying back the federal government for the loans given to them several years ago when they were in financial difficulty. However, this is not true of all financial institutions. More than 600 financial institutions still collectively owe the federal government more than $30 billion dollars. This amounts to about 13% of the $245 billion dollars that was given to banks by the federal government to bail them out.

SunTrust and KeyBank are two of the larger financial institutions still utilizing federal funds from the bailout. Some of the financial institutions have used the federal bailout money to buy other banks and to line their investment portfolios. This is not what the federal bailout funds were intended for!

When the federal government became involved in the bailout, there was no end game as to how to extricate themselves from loaning money to banks. The Troubled Asset Relief Program, commonly referred to as TARP, injected the federal funds into financial institutions to prop them up during the height of the banking crisis. The issue now is when does the government get this money back and when does the program end.

The Bailout Program is Profitable

The Treasury Department has indicated that they anticipate receiving a $12 billion dollar profit related to the funds loaned to banks under the bank bailout program. However, whether the federal government will ultimately make money or lose money depends on what happens with the 600 remaining banks that are still utilizing taxpayer funds. It should be noted that more than 140 banks have not been making their payments to the federal government. A substantial number of these banks will ultimately default on their debt to the federal government. Under the TARP program, the banks can hold onto their federal funds up to three years. The TARP program is also causing many small banks to merge to become more financially stable. Larger banks have access to capital, while smaller banks have greater difficulty obtaining capital. The intent to the TARP program was to render the banking industry in the United States healthy. Hopefully this program will be a continued success.

Long Island Foreclosure Defense Attorneys

The foreclosure defense and bankruptcy attorneys at the Law Offices of Schlissel DeCorpo can help you with the following items: mortgage modifications, mortgage modifications that fail to meet your needs, foreclosure conferences, defective foreclosure lawsuits, predatory lending issues, real estate problems, defective mortgages, bad faith by financial institutions, Chapter 7 bankruptcies, Chapter 13 bankruptcies, providing information concerning mortgage terms and foreclosure terms, discussing the types of bankruptcy that may be available to you, re-establishing credit after bankruptcy, eliminating second mortgages and stopping foreclosure.

You also may want to take a look at our foreclosure blog. Call us for a consultation for any of the aforementioned items.

Housing Crisis Has Nightmare Scenarios

Foreclosure DefenseThere is currently a national scandal involving the “robo-signing” of foreclosure documents by personnel of financial institutions. There is concern that the foreclosure predicament resulting from the mortgage crisis in this country may destabilize the American financial system.

The Troubled Asset Relief Program, more commonly referred to as TARP, was set up to deal with the bank crisis in the United States related to the banking industry over-extending itself concerning residential mortgages. The Congressional Oversight Panel is the watchdog agency designed to monitor the TARP program. Recently, the Congressional Oversight Panel has been issuing warnings that the problems involving the servicing of foreclosures in the United States could create global economic problems.

The Congressional Oversight Panel is concerned that banks may not be able to prove they own the mortgage loans that they seek to bring foreclosure proceedings on.

In recent months, foreclosure proceedings have actually gone down. This is not related to homeowners making their mortgage payments; it is instead related to lenders temporarily stopping their foreclosure proceedings due to allegations of mishandling and fraud in thousands of cases.

Homeowners being unable to make their mortgage payments and the huge volume of foreclosures in the United States are significant factors in preventing the United States from having an economic recovery. The foreclosure crisis relates to banks giving mortgages to hundreds of thousands of individuals who basically could not afford to make the payments on their mortgages.

About Our Law Firm

The Law Offices of Schlissel DeCorpo is a general practice law firm that has extensive experience in handling foreclosure defense. In addition to foreclosure defense, our office handles litigation concerning defective foreclosure lawsuits. We also assist our clients in Chapter 7 and Chapter 13 bankruptcies as well as preparing and submitting mortgage modifications> on their behalf. Should you have a problem, feel free to contact us. Our phones are answered 24 hours per day, 7 days per week. Our phone numbers are 1-800-344-6431, 516-561-6645 or 718-350-2802.

Foreclosure Defense in Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick and Bellmore, New York

We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

This is attorney advertising. This website is designed for general information purposes only. The information presented on this website shall not be construed to be legal advice. If you have a legal problem you should consult with an attorney.

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