tapes were made in the past month. california lawmakers say they have reached an agreement on the state s budget after a record 90-day stalemate. republicans are indicating that there will be no tax increase. the announcement comes after a five-hour meeting last night. details of the plan are expected to be announced wednesday followed by a vote by the electr electric chur on thursday. gmac and jpmorgan are also reviewing tens of thousands of foreclosure cases after it was revealed that some companies signed foreclosure documents without even reading what was in them. bank of america isn t saying how many cases will be affected. rjts new polls show the gop is facing fresh midterm road
gmac now allied national halted evictions in 23 states for same reason. they fear other institutions did the same thing opening themselves to court challenges which could stall efforts to digest millions of bad loans. this is going to stretch things out more. the financial sector will not put the housing problems behind them for probably another several years. banks will get hammered. of course. the real estate business will get hammered. until we work through the bad loans, neither housing nor banks can recover. chris: thank you for that. the house committee last week heard from comedian stephen colbert about immigration, today listen to media mogul rupert murdock and michael bloomberg. murdock owns the parent company of this network and bloomberg is mayor of new york and owns his own financial news service. they urged lawmakers to match effort to secure the border with efforts to ensure
analogy. we have an originator in terms of a bank or a gmac that originates the loan. they pass that loan on to an eventual holder such as pimco or fannie mae and freddie mac, and in between which i think is an important analogy here, you have a referee called the servicer. the servicer is the referee on the football field to decide whether or not to call a penalty, whether or not the home should be foreclosed on. in many cases these servicers are the same banks and originators that produced the loan in the first place. so therein lies a potential for some of the conflict and some of the problems that we re beginning to see in terms of the interpretation of the foreclosure law. what are the implications of this type of development, and broadly the relatively tepid nature of the rate of economic growth right now on both government policy and investment
and basically the dynamic of our own economy as we are forced to reconcile trillions and trillions in various housing agreements and all the rest of it? well, the more foreclosures that take place, the lower and lower the neighborhood goes in terms of its valuation and the potential for homeowners, or ex-homeowners to, you know, to prosper and to thrive like they have in the past. as it sort of goes downhill. so consumption. it s something that the government doesn t want to happen. i would say that over the past year and a half to do years they haven t really done a great job. in terms of, you know, getting to the heart of the problem. if they re only now, you know, forcing gmac and some of the banks to relook at an interpretation of contract laws,
is in hot water again. pushed through paper work on foreclosures but did they check the facts to see the homeowners were in default? al son kosik at the new york stock exchange, what happened? seems they signed the foreclosure papers without checking the facts first and some didn t verify the information in those documents and the documents i m talking about contain information on the mortgage, how much is owed, who owns it, that kind of thing. also, the bank is supposed the sign papers in front of a notary and in some cases the notary wasn t even around. allied bank which used to be known as gmac admits this happened and report that is a single jp morgan chase employee did the same thing. we have reached out the them. no comment yet from them. kyra? so, how does this happen? i mean, where s the oversight or the court supervision? of course, that s a really good question and some states don t require them to go to