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Main Street Homeowners Propose 150-Day Moratorium and Cap on CEO Compensation as Part of One Trillion Dollar Wall Street Bail-out
Berkeley, CA – Today, September 22, 2008, The Greenlining Institute called for a 150-day foreclosure moratorium and a cap on CEO compensation to be included in the Bernanke/Paulson one trillion dollar bail-out of Wall Street (see attached letter to Bernanke and Paulson.)
Alleging that the largest taxpayer bailout in American history primarily benefits Wall St. and its greedy executives while ignoring the five million homeowners on Main St. facing foreclosure, Greenlining urged five Main St. actions:
- 150-day foreclosure moratorium in order to give the new president time to develop an FDR-like solution.
- Sheila Bair’s FDIC/IndyMac thirty-eight percent of net-income mortgage payment solution to avoid foreclosure.
- Capping top executive compensation packages at fifty times the average worker’s salary or $2.5 million a year for five years. This is consistent with Senator McCain’s so-called “anti-greed federal commission” approach.
- Capping interest rates for five years at the ten-year Treasury note rate of less than 4% for borrowers facing an emergency such as unemployment or a health crisis.
- Restoring flexibility to bankruptcy court judges to avoid foreclosures where the lender does not have clean hands.
Background: Greenlining first warned Federal Reserve Chairman Greenspan of the pending foreclosure crisis at two D.C. meetings in 2004 and 2005. Since then, it has frequently met with Federal Reserve Chairman Bernanke and FDIC Chair Bair. And, it has met on housing issues with three of Secretary of the Treasury Paulson’s predecessors including Rubin, Summers and O’Neill. It has confirmed meetings on this crisis in D.C. immediately after the November elections with Bernanke, Bair and Comptroller Dugan, and has a pending request to meet with Paulson.