US banks accused of ‘‘robo-trading”
(19 October 2010 – USA) Some of America’s biggest banks are undertaking "paper work" investigations to dispel allegations that they used false or unverified data to fast-track foreclosures.
According to the ABC, parts of the industry, including Bank of America, stand accused of "robo-trading" or rubber stamping documents used to evict people who had fallen behind on their mortgage repayments.
If proven to be true, the allegations could further tarnish the already blemished US banking district.
As US banks try to prove the allegations untrue, analysts have called for a total freeze in home foreclosures.
The US government and Wall Street have opposed the freeze saying it could have "catastrophic" consequences and further constrain consumer credit and spending.
If proven to be true, the allegations could further tarnish the already blemished US banking district.
As US banks try to prove the allegations untrue, analysts have called for a total freeze in home foreclosures.
The US government and Wall Street have opposed the freeze saying it could have "catastrophic" consequences and further constrain consumer credit and spending.
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