Oct 06 2010

Shelby Calls for Banking Committee Investigation

U.S. Senator Richard Shelby (R-Ala.), ranking Republican on the Committee on Banking, Housing, and Urban Affairs, today released the following statement regarding his call for a Committee investigation of allegations related to mortgage servicing and foreclosure practices at various financial institutions: 

“The Federal Banking Regulators should immediately review the mortgage servicing and foreclosure activities of Ally Financial, JP Morgan Chase and Bank of America.  The regulators should determine exactly what occurred at these institutions and make those findings available to the Banking Committee without delay.

“Furthermore, because it appears that the regulators have failed yet again to properly supervise the entities under their jurisdiction, the Committee should immediately commence a separate, independent investigation into these allegations. It is the Committee’s fundamental responsibility to conduct oversight of the banking regulatory agencies and the firms under their jurisdiction.

“With the recent passage of the Dodd-Frank Act wherein the financial regulators were granted even broader powers, I am highly troubled that once again our federal regulators appear to be asleep at the switch.”