Campaign to Hold Big Banks Accountable to Families & Communities
PICO is working with congregations across the United States to press the Treasury Department, the Federal Reserve, state Attorneys General, federal bank regulators, Congress and the nation's largest banks to stop preventable foreclosures; help rebuild communities hardest-hit by the foreclosure and economic crises; and get sound, affordable credit flowing again into our communities to create jobs and economic growth for everyone.
The Problem:
It used to be that banks existed to help all Americans build wealth and prosperity. Over the last few decades, a drastic change occurred. Banks started focusing more on making massive profits for those at the top by using the money of hard-working Americans to gamble on the "Wall Street Casino." When Wall Street finally lost its bet, the effects were devastating for the entire nation.
What PICO is doing:
1) Fighting Preventable Foreclosures - www.CrimeShouldntPay.com
According to the latest figures, over 6.2 million families have already lost their homes; another 4.2 million are in or near foreclosure; and an additional 3.5 million homes are estimated to be lost by the end of 2012. Meanwhile, the federal government's main foreclosure prevention program has helped just 580,000 families get permanent relief over 18 months. At this point, the primary cause of foreclosure is unemployment due to the massive recession caused, in large part, by the reckless behavior of the nation's biggest banks. Hard-working Americans are losing their homes to the very banks that took their jobs from them in the first place.
To right this wrong, PICO is working to press both banks and the government to do more to help families - especially those who lost their job through no fault of their own - stay in their homes. In the spring and summer of 2010, PICO organized a series of field hearings with the Obama Administration focused on improving its primary loan modification effort - the Home Affordable Modification Program. Now, PICO leaders are pressing the 50 state Attorneys General to reach a strong settlement with the nation's largest banks in their investigation into the banks' fraudulent foreclosure practices. Learn more at www.CrimeShouldntPay.com
2) Investing the Public's Money in Responsible Banks - www.MakeWallStreetPay.org
Homeowners are not the only ones suffering from the banks' irresponsible behavior. City, county and state governments are facing massive budget deficits due to an economic crisis caused by the reckless behavior of the nation's biggest banks. To ensure that our local and state governments are investing their dollars in banks that are investing back in local communities, PICO congregations and organizations are beginning to develop ordinances in Los Angeles, New York City and other locations that will move money out of irresponsible financial institutions that are harming families and communities and into banks that are willing to keep families in their homes, invest in rebuilding our neigbhorhoods, extend credit to small businesses, spur job growth, and ensure fair access to good credit. Watch our "Our Money, Our Values" campaign video to learn more. And visit www.MakeWallStreetPay.org to see how much Wall Street is costing you, your community and your state.
3) Fighting Other Forms of Wealth-Stripping like Payday Lending
Finally, PICO organizations have been fighting a vicious form of predatory lending - payday loans that charge up to 600% interest rates and are proven to trap people - particularly low-income people - in a cycle of debt. Many of the nation's big banks - including Wells Fargo - offers payday loans themselves, while other banks like Bank of America extend massive lines of credit to the industry.
PICO is working to press big banks to stop funding payday lending, and instead, to create small-dollar loan products that charge a fair interest rate.
