Star Tribune: U.S. policy needed to stabilize housing

Two banking giants are finally making a meaningful move — easing terms on some high-risk mortgages — to help revive a national housing market flattened by foolhardy home loans and the reckless poker game Wall Street played with mortgage-backed securities.

But quickly put to rest any illusion that this is an industry acting with purely noble intentions.

The big banks — JPMorgan Chase and Bank of America — are moving belatedly and in self-interest. They've discovered that their bottom lines will benefit more by proactively modifying some high-risk loans than by letting the properties go into foreclosure.

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© Al Franken - U.S. Senator, Minnesota, 2011. |
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