As reported on MSNBC.com (Nov. 1, 2009):
Executives of America's 28 largest banks will meet with Federal Reserve supervisors on Monday to discuss the Fed's plan to police banks' pay policies, officials said Friday.
Consumer spending plunged in September by the largest amount in nine months, reflecting the end of the government's Cash for Clunkers auto sales program. Incomes, the fuel for future spending, were flat.
What History Says:
In 1802 it was said: “I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.”
Thomas Jefferson (1802).
Today’s Required Response:
Call, write, or email your elected officials and tell them NO pay for bank executives without consumer protection and bankruptcy reform. Why do the bank executives get an audience with the Federal Reserve, while their lobbyists thwart consumer protection laws and bankruptcy reform? Are you, your clients, friends and family getting pay raises!
STAND UP AND SPREAD THE WORD OF THOMAS JEFFERSON!
Here are Three Facts Every Client Must Know:
1. If you bank where they borrow, the bank will seize funds as a set off, even if you file bankruptcy.
2. When a Bankruptcy Case is filed, certain banks, such as Wells Fargo and Union, will freeze accounts as a custodian of the account. They will not release funds, even though checks may bounce, until further ordered by the court or they receive a No Asset Report from a Trustee.
3. Now, credit unions seem to be getting very aggressive about "popping" cars when members fall into default on credit cards and even home loans, even though car payments are current. They do so based upon the cross-collateral language in the car loan and mortgage (or note and deed of trust) documents. And, so, clients must be admonished that even though they may be current on car payments to a credit union, their car may be in jeopardy of being repossessed.
Louis J. Esbin
Law Offices of Louis J. Esbin
Certified Bankruptcy Specialist State Bar of California.
I have created a Poll on LinkedIn <http://polls.linkedin.com/poll-results/59349/wexls>
American Bankers Association Reports Bank card delinquencies rose to a record 5.01 percent of all accounts. For home equity loans, 4.01 percent of accounts were delinquent, while 1.92 percent of home equity lines of credit were delinquent.
