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January 27, 2010
As you should have heard by now, Morgan Stanley walked away from one of their contractual obligation last December. That is to say, their real estate obligation. They handed over the keys to the mortgage lender of four huge office buildings, in essence saying ‘we don’t care about our signed contract with you — we’re just not going to honor it’. Alyson Barnes, spokeswoman for the company, said “this isn’t a default or foreclosure situation. We are going to give them the properties to get out of the loan obligation”.
Obviously this came as no surprise to anyone. Wall Street is allowed to do this, and no one makes anything out of it — except, of course, the mortgage holder. However, let a homeowner walk away from his contractual obligation and you’ve got every Wall Street hawker on the air and in the printed news slamming the hell out of them.
If you’ve been reading my blog for a while, you probably read Law Professor Thinks Main Street And Wall Street Should Live Under Same Rules; CNBC Doesn’t Think So. In that post I talked about how CNBC’s Michelle Caruso-Cabrera and Sue Herera went on an all out attacked on the law professor for even suggesting that home owners should have the same rights as Wall Street. Caruso-Cabrera out-right accused White of “wanting to reward people who made bad decisions”. That in itself was so sickening I almost threw up, given the fact that, for more than a year, Caruso-Cabrera and others at CNBC have been defending and “justifying” the rewards that bankers have been getting for making bad decisions.
My post and the CNBC “incident” was on December 1, 2009; the Morgan Stanley deal went down 15 days later. Not — a — peep out of CNBC. I waited for three days for someone to ask the two she-devils about it, but nothing. And although I didn’t expect it, I wondered if the two would mention it themselves. I have no idea what made such idiot idea come in my head.
If you’d like to see the video interview with the law professor, visit the above link.
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