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Fines don’t seem to be preventing these cheats from ripping off consumers. When a bank cheats its customers, they should be prohibited from providing those ser
by MichaelApproved 9y ago
Fines don’t seem to be preventing these cheats from ripping off consumers.
When a bank cheats its customers, they should be prohibited from providing those services for several years. Shut down their mortgage division and force them to sell it off. That is the only real penalty that has teeth.
- dingo_bat 9y agoWhat about the people currently having a mortgage with the bank? You wouldn't want to hurt them.
- fiddlerwoaroof 9y agoDon’t banks generally bundle and sell mortgages anyway?
- wnevets 9y agofannie mae probably owns the mortgage anyway
- avaika 9y agoWell, that's shooting own leg for government and people: 1. This is a business which generates taxes 2. This is a business which generates employment 3. This is a business which provides a service to people and current clients will suffer from shutdown. If you can simply fine it hard enough to make them stop cheating like that in future, that should be more than enough. Simple fines to make cheats unprofitable should do the thing. Also the rule "to shutdown" the entire division might be misused on the wrong way or to blackmail the business. Once you shut down the division, it's much harder to reverse it, than simply to return a fine.
- Retric 9y agoIf it's sold off then the buyer is going to serve the costumers and pay taxes so no real loss for society. The larger issue is it's a minimal impact on the company and the people who actually commit ed the crimes.