“So you have made a decision to protect the banks but not to inform the families who were illegally foreclosed upon?”

Warren: So I just want to make sure I get this straight. Families get pennies on the dollar in the settlement for having been the victims of illegal activities or mistakes in the banks’ activities. … You now know individual cases where the banks violated the law and you’re not going to tell the homeowners or at least it’s not clear yet whether or not you’re going to do that?

Response: We haven’t made a decision what we’re going to tell the homeowners.

Warren: You know, I just have to say, I thought this was about transparency. That’s what this is all about. People want to know that their regulators are watching out for the American public, not for the banks. And the only way that we can evaluate whether or not you’re doing your job is if you make some of this information publicly available. And so far, you’re not doing that, and without transparency, we can’t have any confidence either in your oversight or that the markets are functioning properly at all and that people are going to receive proper compensation for what went wrong.

Senator Elizabeth Warren’s opening statement and Q&A at the April 11, 2013 Senate Banking Committee, Subcommittee on Financial Institutions and Consumer Protection Hearing. Panelists include:

Mr. Daniel P. Stipano
Deputy Chief Counsel
Office of the Comptroller of the Currency

Mr. Richard Ashton
Deputy General Counsel
Board of Governors of the Federal Reserve

Image: AP

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