OCC Probe of JP Morgan Debt Collection Abuses Will Show if Agency Can Be Reformed
As readers probably know all too well, the Office of the Comptroller of the Currency has long been the most cronyistic of all bank regulators. So the default assumption when it cranks up an investigation is to assume that it’s just a window-dressing exercise or worse, a stealth bailout of some sort.
Yet the Washington Post tells us that the OCC is widening an investigation into debt collection, where alleged robosigner JP Morgan is the sinner-in-chief. What gives?
By all accounts, incoming OCC chief Tom Curry is serious about trying to reform the agency. And if media accounts and the case filed by California attorney general Kamala Harris against JP Morgan are remotely accurate, JP Morgan’s conduct is so far beyond the pale that the OCC should be able to extract a handsome settlement and, more important, force reforms on the bank and the industry generally.
Now mind you, I’m not optimistic about Curry’s odds of success, and I therefore think the OCC should be shuttered and its responsibilities given primarily to the FDIC. But this situation serves to illustrate how the power dynamics in DC are shifting on bank reform.
Rest here…
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I disagree with the statement the debt collection business is not the main business and profits of the banks. The debt collection process is the mortgage alleged default business to steal houses. I dont’t believe they own the loans and are attempting to collect a debt as a third party whom has loaned not one penny to the loan and is conning the public, the court systems and the homeowners into foreclosures on mortgages they do not own, nor have a clue who owns them, due to their corruption in the securities pools and stock market. The banks were cashed out and they never entered the notes into the securities pool, with an attempt to enter them years later after defaults. It is my unprofessional opinion the debt collection business is their main business conning false defaults. The banksters are in the default business a debt collector as they state on every paper to the homeowner, and are subject to FDCPA law. They are debt collectors. Not owners of mortgages. Just my opinion.