What is the a logical outcome of unscrupulous mortgage lending practices in Michigan? More foreclosures? Yes. Sagging house values? Yes. Tightening global credit market? Yes.
A good old fashioned bank run in Britain? Well, by extension, yes. The bank's problems are blamed on the ongoing global credit crunch that has its roots in subprime lending in the U.S.
BBC reports today that over the last two days, Northern Rock customers have queued up and waited for hours to withdraw funds from bank locations across the country.
"Banking sources suggest that on Friday alone clients pulled out £1bn - or 4-5% of retail deposits."
That's $2 billion in one day.
Showing posts with label banks. Show all posts
Showing posts with label banks. Show all posts
Saturday, September 15, 2007
Wednesday, April 18, 2007
U.S. Supreme Court Denies Michigan's Effort to Protect Consumers
Wachovia wins. Consumers, beware.
From Reuters coverage: "The U.S. top court ruled on Tuesday that states cannot regulate lending by mortgage subsidiaries of national banks, blocking Michigan's efforts to enforce strict consumer protection laws on these subsidiaries."
All 49 other states supported Michigan's effort on behalf of consumers.
And here's a surprise from the dissenting opinion.
"It is especially troubling that the court so blithely pre-empts Michigan laws designed to protect consumers," Stevens wrote. He was joined by Chief Justice John Roberts and Antonin Scalia.
From Reuters coverage: "The U.S. top court ruled on Tuesday that states cannot regulate lending by mortgage subsidiaries of national banks, blocking Michigan's efforts to enforce strict consumer protection laws on these subsidiaries."
All 49 other states supported Michigan's effort on behalf of consumers.
And here's a surprise from the dissenting opinion.
"It is especially troubling that the court so blithely pre-empts Michigan laws designed to protect consumers," Stevens wrote. He was joined by Chief Justice John Roberts and Antonin Scalia.
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