Please, sir, may I have some more? [Photo by Chris Savage | Eclectablog] Steven Rhodes, the federal judge overseeing Detroit’s Chapter 9 bankruptcy, halted discussions on Emergency Manager Kevyn Orr’s plan to borrow $350 from Barclay’s bank to retire some terribly negotiated debt swaps, effectively moving banks to the head of the line in the bankruptcy proceedings. In what can […]

It’s good to be the king banker

There’s a story emerging out of Detroit about the role too-big-to-fail banks have played in the creation of Detroit’s fiscal emergency. Last week, Dave Dayen reported at the National Memo that some banks have begun foreclosure proceedings on homeowners and then simply walked away before taking possession of the property. This leaves evicted homeowners on the hook financially for the home they are no longer permitted to live in. What’s worse is that the banks don’t even have to inform the homeowner or the city of Detroit which no longer receives any tax revenue from the property.

Not only that, banks have been reaping huge profits in debt restructuring fees and, as added salt in the wound of a city in crisis, Republicans have ensured that these same banks will be paid in full as Detroit works to get out from under its crushing debt.

Much more after the jump.

I’m sorry, but I’m having a REAL hard time believing this load of manure: DCDecoder asks [Motley Fool’s] Morgan Housel: Why do you think Bank Transfer Day may end up working out for banks AND customers? Housel: One of the drivers behind [Bank Transfer Day] is people trying to teach banks a lesson. The irony of that is since the […]

I’m reposting this blog after a major reading comprehension failure on my part this morning. I thought the investigation was being conducted by federal prosecutors (i.e., the Obama administration.) Turns out, if I had read my own cut-and-paste blockquote, I would have realized it is a New York prosecutor. With all I’ve got going on these days (recruiting volunteers for […]