Gary Gensler, the Chairman of the Commodity Futures Commission, explains in the New York Times why consumers with interest rates in their contracts should care about the integrity of Libor--the London interbank offered rate--which is used as a benchmark average interest rate at which large international banks can borrow money.
Law professor Jeff Sovern, a coordinator of the Consumer Law and Policy Blog, and a member of the Fair Contracts Advisory Board, has an excellent piece in the New York Times today titled "Help for the Perplexed Home Buyer." He notes that the Consumer Financial Protection Bureau's proposed new rules to clarify housing loan disclosure forms are a big help, but that most consumers don't read these forms. Sovern contends that the simplification of the forms is not enough and that consumers "who cannot or will not understand mortgage disclosures should be required to hire mortgage counselors."
"The equitable case is the widespread fraud and deception involving subprime mortgages raining down on innocent homeowners following the Wall Street crash and the corporate greed that caused it. This is the ugly license fostered by massively one-sided, fine-print contracts.
