NEW YORK, NY – February 18, 2011 – (RealEstateRama) — City Comptroller John C. Liu stated the following in response to inquiries about his reaction to Acting Comptroller of the Currency John Walsh’s testimony to the Senate Banking Committee today that regulators are finalizing sanctions against banks that violate foreclosure laws and regulations:
“This is proof positive that bank directors need to independently review policies and procedures in the mortgage pipeline. For many months, the NYC Pension Funds both on its own and in a coalition with other institutional investors, has called on bank boards to root out the internal control breakdowns that are behind widespread robo-signing of foreclosures and other liabilities.
“Their resistance to cleaning house has left shareholders holding the bag for the cost of regulatory penalties and reform. To date bank boards have accepted their executives’ rosy assurances that these financial mishaps were the result of mere technical glitches.
“It is about time that bank directors faced the music for their refusal to correct systemic flaws in their procedures. They must climb out of their bunkers and demonstrate independent leadership to prevent future compliance failures and restore the confidence of shareholders, regulators and mortgage market participants.”
Contact:
Sharon Lee / Matthew Sweeney, (212) 669-3747
