The banks are pushing back hard against the city of Richmond, California, as Richmond tries to help its homeowners get out from under mortgages that are seriously out of whack compared with actual property values. First the banks filed suit to stop Richmond, and now they’re telling their investment clients to steer clear of Richmond’s municipal bond offerings.
Shorter bankster: “Nice city you’ve got here, Richmond. It’d be a shame if anything were to happen to it.”
But Richmond still has one powerful weapon in their pocket, that scares the banks to death . . .