BILL NUMBER: HR 21	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Jones

                        SEPTEMBER 11, 2009

   Relative to financial institution divestiture.


	LEGISLATIVE COUNSEL'S DIGEST
             HOUSE OR SENATE RESOLUTIONS DO NOT CONTAIN A DIGEST



   WHEREAS, There is currently a financial crisis in our nation where
people are losing their jobs and homes and no longer have the
financial security that was once possible and that contributed to the
growing prosperity of our economy; and
   WHEREAS, This crisis is affecting communities at all levels, with
working class communities the most severely affected, as they were
often explicitly targeted and preyed upon by lenders and brokers
offering unconventional loans and financing options; and
   WHEREAS, As the local, state, and federal governments work on
resolving the current foreclosure crisis, one of the key factors that
must be addressed is the modification of loans that are "upside-down"
and that need to be modified to the current market value of the home
instead of the original loan amount, so that homeowners facing
foreclosure receive true relief from the burden of the loans they
were unjustly pushed into by aggressive lenders and brokers; and
   WHEREAS, Currently, there is active pressure on financial
institutions to modify loans for homeowners susceptible to
foreclosure by reducing the principal amount of those laws to the
current market value of the home and many financial institutions are
not inclined to do this, particularly with no financial incentive;
and
   WHEREAS, As with the state and local governments, financial
institutions have an obligation in assisting their customers to
preserve the American Dream; now, therefore, be it
   Resolved by the Assembly of the State of California, That the
State of California and local governments should explore the
potential divestiture of all financial interests in banking and other
financial institutions that fail to cooperate with foreclosure
prevention efforts that include temporary moratoriums on
foreclosures, renegotiation of mortgage principles to reflect current
values, and good faith negotiations with mortgagees; and be it
further
   Resolved, That the Assembly also supports retirement programs that
adopt a similar divestiture policy; and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the author for appropriate distribution.