The Mayor of Cleveland Frank Jackson is filing lawsuit against as many as 21 Wall Street financial houses. The latter being squarely blamed for the aftermath of foreclosures in Cleveland.
It is being argued that the greed and one-sided attitude of the banks and investment firms has resulted in creating economic problems for the city. It is their predatory lending of high-risk loans that has ended up in bank foreclosures leading to unprecedented problems. All they saw was the money. They did not pause to think that they were living off the tears and sighs of the people who were cheated with their gift-wrapped package of woes.
The city took a new approach to the problem by blaming the financial giants directly for the plight of the city. It was contended that these institutions were nothing but public nuisances. The law seems to be all for them says Law Director Robert Triozzi. A handful of outside lawyers are being brought in to build up the case. The agreement is that they will be paid only if the victory is for the city. The lawyers are going to use arguments hitherto used against tobacco and paint companies as well as gun manufacturers. The various council members who are having to tackle problems related to devastated desolate wards cheer the action. Tony Brancatelli, a councilman says that had these practices not been allowed and loans not been sanctioned this scenario would not have happened. Councilwoman Phyllis Cleveland is applauding this ambitious creative approach that will be win laurels everywhere. Legal expert Kathy Hessler is also upbeat about the new approach to the legal twist. Even if the case does not make headway some points will gain prominence and publicity.
Cleveland City filed the city in the Common Pleas Court. It is anticipated that the defendants will try to move it to the Federal Court.
This is the first of its type lawsuit. Previously Baltimore city had of late sued giant banks for using unfair housing arguments.
One of the worst pockets is Slavic Village. Betty Maclin, a resident is vociferous, surrounded by abandoned houses. She is strident in her appeal that something should be done to punish these financial busy bodies. But the days of reckoning does not seem to be far as already the giants are suffering from indigestion for having eaten more than what was good. They too are suffering from layoffs and elephantine losses.
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1 response so far ↓
1 mserin // Jan 15, 2008 at 5:01 am
Just My three cents worth…
Under current threat of foreclosure, my husband and I are in effect; being told by the personnel at the bank that we are terrible people who are late on payments due to losses sustained in a less than satisfactory business deal. We are possibly going to lose not only our home, but our medical practice as well. It is a small business serving the holistic needs of people who need help. Not a big clinic but a small one-doc office.
Our business will pick up back to “normal” in the next few months but the bank is making noises about taking the house and is refusing, yes I said refusing, all offers of reasonable plans to make up the payments.
They bully, threaten, intimidate, and generally treat us as if we have done something wrong to the person on the phone personally. I am sorry, but it makes no sense. I was actually told that a suggested plan to make it work out was not going to happen even though it was a suggestion from someone who works for the banking commission of our state. Our house IS the office.
After reading this set of articles, I have to say that the idea of suing the bank that is refusing to work with us to correct the situation is looking like a good idea. Maybe I should have the friend who is a lawyer see if he would be willing to take it on a contingency…
What would happen if many angry, hurt, financially strapped people were to sue the banks over this stuff?
Bunches of people from all over the country, all at once, say in the next year.
We are after all, just trying to find solutions in order to keep our homes. We are not trying to get something for nothing but it seems the banking personnel treat us that way. “It is just the way the bank works ma’am, “does not cut it anymore. Therefore, what would happen if a trend were started that demanded that we be allowed to work on making payments and keep our homes?
We all just want to find ways to keep our homes and not have to worry all night and all day to the point where we become so ill that we cannot work and have to go on disability. If we become disabled, we still have no money so there is the very real possibility that we become truly homeless and have to become part of the vast shelter system and into the public assistance system.
To my point of view, the banks are looking to make the Great Depression look like a picnic.
Yes it would clog our already full beyond capacity courtrooms for the next 50 or so years but it would also make a statement about the fact that for the most part, the homeowners who are being foreclosed on are not the rich investors but the working class that keeps this country going.
Then again, maybe this type of thing would make such a statement that the system could finally be changed.
Just something to think about. My three cents.
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