http://seattletimes.nwsource.com/html/businesstechnology/2013154724_apusbailoutwatchdog.html
Conflict of interest
Yes I can see where that might be a problem.
It wouldn't behoove the banks to modify because they themselves would have to eat that loss and make up the difference to the investors.
But that's who Treasury put in charge to negotiate the issue of loan modification with.
In other words Treasury made sure that the loan modification programs had no chance of hindering the banks ultimate goal, in not being stuck making up the difference to the MBS investors, by employing the very same companies, that mismanaged the crisis into becoming a reality, in the first place.
In other word, those that applied for mortgage modification, never had a shot in hell of obtaining one.
"These private businesses do not take an oath of office, nor do they stand for election," the report says. "They may have conflicts of interest, are not directly responsible to the public, and are not subject to the same disclosure requirements as government actors," it says.
