|
|
 Email |  Discuss | Get latest news on your desktop
How Obama plans to tackle the crisis
November 26, 2008
"The economy is likely to get worse before it gets better."
Obama will crack down on fraudulent brokers and lenders. They will also make sure homebuyers have complete information about their mortgage options, and they will give a tax credit to all middle-class homeowners.
Obama has been closely monitoring the subprime mortgage situation for years, and introduced comprehensive legislation over a year ago to fight mortgage fraud and protect consumers against abusive lending practices.
The administration plans to establish a five-star rating system so that every consumer knows the risk involved in every credit card. They also will establish a Credit Card Bill of Rights to stop credit card companies from exploiting consumers with unfair practices.
He plans to reform bankruptcy laws to protect working people, ban executive bonuses for bankrupt companies, and require disclosure of all pension investments.
In the subprime market crisis, credit rating agencies strongly rated subprime mortgage securities even as there were large numbers of foreclosures, Obama plans an investigation into the ratings agencies and their relationships to securities' issuers.
Image: An activist holds a poster during a rally outside U.S. Department of Housing and Urban Development.| Photograph: Alex Wong/Getty Images
Also read: Pink slip mayhem continues
| Live updates on money.rediff.com |
|
|
|
|
Advertisement
