News
Faith Leaders Attend Bank of America Shareholders Meeting to Demand Halt to Foreclosures
Contra Costa Interfaith Supporting Community Organization (CCISCO), PICO National Network, February 24, 2010
Yesterday, a delegation of PICO clergy and faith leaders, together with allies from other faith-based and consumer advocacy organizations, met with Barbara Desoer, President of Home Loans, Mortgage and Insurance at Bank of America, to discuss concrete strategies that the bank can take to prevent more of its borrowers from needlessly losing their homes.
"After months of talking with Bank of America, I appreciated being able to speak face-to-face with Ms. Desoer because she and CEO Brian Moynihan have the power to change the bank's corporate policies to keep our families in their homes and protect our communities," said Ken Kelly, a PICO community leader from Antioch, California who participated in the meeting.
At the meeting, PICO leaders discussed proposals to stop all foreclosure proceedings until Bank of America reached clear benchmarks for placing eligible families into permanent loan modifications, as well as ideas for increasing the number of principal reductions performed by the bank.
Afterwards, PICO clergy leader Rev. Lucy Kolin spoke at the special shareholders meeting to vote on the sale of additional stock to repay Bank of America's TARP loan from the federal government. Read the full statement here.
"Bank of America has the power to help lead our country from the depths of economic recession," said Rev. Kolin to Bank of America's CEO, board, and shareholders. "But to do so, you need to take bolder action. You need to create real change that the American people can see and feel."
Yesterday's meeting in Charlotte came on the same day that the Los Angeles City Council discussed legislation that would set community standards for banks with which the city does business. Reckless financial practices by big banks led to deep recession that has devastated the budgets of local and state governments. With Los Angeles facing a $212 million budget gap that would force cuts to much needed city programs and services, this legislation would ensure that taxpayer money only be invested in banks that met criteria that ensured its contribution to the economy. This would include putting a moratorium on home foreclosures and meeting a minimum number of permanent mortgage modifications.
If passed, the measure could have a significant impact on Bank of America, where Los Angeles deposits a large share of city finances.
"While we are glad that Bank of America has begun to show us that they are serious about addressing the underlying policies and practices causing so many to lose their homes, we need measures like those being considered by the city of Los Angeles to keep the pressure on and make banks compete for our money," said Carol Delorey, a PICO leader from Brockton, Massachusetts who attended the meeting with Ms. Desoer in Charlotte.
PICO plans to continue engaging with Ms. Desoer and other senior executives in Bank of America to move forward specific policy proposals that would dramatically increase the number of permanent, sustainable loan modifications. A delegation of clergy and leaders will also attend the bank's April shareholder meeting to continue pressing for aggressive action. PICO has also asked the U.S. Treasury to fine Bank of America $80 million dollars for its failure to provide permanent loan modification to more than a small fraction of eligible homeowners.
