Foreclosure Fraud: Wall Street Cheats the Middle Class Again

I was heartened to see a group of Democratic Senators

write this great letter

to Ben Bernanke and administration officials on the foreclosure fraud issue. They came out strongly for several important things regarding homeowners' rights, and they framed the issue perfectly: this is not some minor technical problem regarding some mislaid paperwork in a few cases, this is fraud by bankers on a massive scale. Along with this letter, check out

this great op-ed

by Sen. Whitehouse on the subject. Once again, in keeping with the pattern

Digby first reported

, this is all Democrats doing the right thing, and not a single Republican lifting a finger to help. Another bit of great news: Elizabeth Warren echoed the Senator's message, calling the foreclosure issue "big and serious". This puts the administration clearly on the side of the idea that this problem isn't just a minor paperwork hassle, and that it matters a lot.

This foreclosure fraud issue is yet another domino falling, where once again the big Wall Street banks are wreaking havoc with our economy in order to come away with outlandish profits at the expense of poor and middle-class people. These huge banks are so powerful both politically and economically that they haven't worried about playing by the rules and following the law. Their thinking is that because they are too big to fail, and too influential in Washington, they can just get Washington to change the rules as they go along and bail them out whenever needed. They were shocked that their sneak attack at changing the mortgage rules got exposed by progressives and vetoed by the President, but they almost certainly still assume they can eventually get the rules changed to save them from their own fraud one more time.