On Wednesday November 28th 2007, the National Training and Information Center, Empowering & Strengthening Ohio’s People (ESOP) and homeowners and community groups from around the country, joined by the NAACP, will ask the biggest U.S. investment banks to take part in the effort to prevent a catastrophic wave of foreclosures across America by donating their holiday bonuses to a foreclosure prevention fund. A report released today by the National Training and Information Center reveals how the top U.S. investment banks wielded extraordinary power in the subprime mortgage market, pushed it to unsustainable levels and reaped tremendous revenues and bonuses as a result.
While cities around the country are experiencing record-high foreclosure rates, investment banks are looking to reap another round of huge bonuses this year. In 2006, the top five investment banks in the U.S. gave out a record 36 billion dollars in holiday bonuses. “The trail of money and greed leads straight to Wall Street. The big investment firms plan to cash in on big holiday bonuses while our neighborhoods are destroyed by foreclosures. Wall Street must do the right thing and forego their lavish bonuses to help families stay in their homes. It’s time they clean up their mess.” states Inez Killingsworth, ESOP President and NTIC board member.
As part of the Save the American Dream campaign, ESOP and other groups from around the country are demanding that the major investment banks pledge this year’s bonuses to a national foreclosure prevention fund that will provide immediate relief to homeowners in danger of foreclosure.
NTIC Report:Wall Street and the Making of the Subprime Disaster.