We know the story. Chase and other banks got billions in bailouts that they were encouraged, but not required, to use to help people modify their mortgages. Instead they sat on it and smiled like cheshire cats. Now a movement has sprung up to punish Chase for its intransigence by withdrawing money from their accounts. On the individual account level, that’s not much. But in New York state, entire towns are getting in on the act.
NYT reports that the villages of Hempstead and Freeport have withdrawn millions from Chase. Ithaca has barred the bank from participating in future bond offerings. And Binghamton is soon expected to vote to withdraw tens of millions.
For company with trillions in assets, the dent, right now, is small. But every snowball starts with a snowflake.
When ranked by the Treasury for their performance in the mortgage relief program, Chase and Bank of America fell in last place. “We continue to make significant improvements to our processes and controls,” company spokesman Thomas Kelly told NYT. “We expect future scorecards will reflect that.”
And if they don’t improve, and more municipal governments close their accounts, Chase’s dwindling balance sheet will reflect the results as well.
Her Bank Got Enough Help When It Was in Trouble. She Didn’t. [NYT] (Thanks to Harper!)
Freeport government closes Chase account in protest of bank’s lending practices [IndyPressNY]