The Federal Reserve must not have received the memo from the Obama administration explaining that they're trying trying to prevent foreclosures. It acquired a big portfolio of mortgages from Bear Sterns in the early days of the financial crisis, and some of those loans are failing. As a result, it's foreclosing on some of those properties. Serena Ng and Carrick Mollenkamp from the Wall Street Journal break down the conflict:
The New York Fed's stance about how to pursue foreclosures is a sensitive balancing act. If it proceeds with numerous foreclosure proceedings in the coming months, particularly on residential mortgages, it could trigger concern among legislators looking to protect homeowners in their districts. The issue is particularly sensitive because taxpayers helped fund the Bear Stearns bailout.
Read the full story at the Wall Street Journal.
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