Congressional Oversight Panel Offers Best and Worst Case Scenarios for Banks

By Kyle Chezum Updated on 11/16/2010

11/16/2010

The Congressional Oversight Panel that oversaw the Wall Street bailout warned that foreclosure documentation errors made by lenders could lead to significant legal action and heavy losses in the housing industry.  Banks have already received billions of dollars in aid from taxpayers through the government bailout, and controversy over foreclosure review methods used by these banks has sparked public outcry.

The Congressional Oversight Panel offers a best case scenario and a worst case scenario.  In the best case, invalid paperwork would be replaced with valid paperwork and business would continue as usual.  In the worst case, banks stand to lose billions of dollars, which could have significant negative repercussions across Wall Street.

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