The CEO of JP Morgan Chase, Jamie Dimon, whose bank took $25 billion in TARP money tried to lecture people having mortgage problems about obligations.
“I don’t think just because someone’s underwater they say I don’t have to stay there. But they’re supposed to pay the mortgage, and we should teach the American people, you’re supposed to meet your obligations, not run from them. Because you have a mortgage doesn’t mean you should run away as it goes down.”
Dimon may not be aware, but before President Obama announced a plan to help people in mortgage trouble and before banks were forced to work with borrowers, their only option was to ditch the house and the mortgage and leave it to the bank before the official foreclosure.
Many of the people in mortgage trouble were on the fringe to start and any economic trouble would push them over. They don’t want to “run away” but you know the old saying about getting blood from a turnip. It makes no sense to hold on to a property if you know you can’t pay the mortgage and no one will buy it from you.
It is also funny for a CEO whose bank took TARP money to be talking about not running away from an obligation.