BILL NUMBER: HR 21INTRODUCED BILL TEXT INTRODUCED BY Assembly Member Jones SEPTEMBER 11, 2009 Relative to financial institution divestiture. LEGISLATIVE COUNSEL'S DIGEST HOUSE OR SENATE RESOLUTIONS DO NOT CONTAIN A DIGEST WHEREAS, There is currently a financial crisis in our nation where people are losing their jobs and homes and no longer have the financial security that was once possible and that contributed to the growing prosperity of our economy; and WHEREAS, This crisis is affecting communities at all levels, with working class communities the most severely affected, as they were often explicitly targeted and preyed upon by lenders and brokers offering unconventional loans and financing options; and WHEREAS, As the local, state, and federal governments work on resolving the current foreclosure crisis, one of the key factors that must be addressed is the modification of loans that are "upside-down" and that need to be modified to the current market value of the home instead of the original loan amount, so that homeowners facing foreclosure receive true relief from the burden of the loans they were unjustly pushed into by aggressive lenders and brokers; and WHEREAS, Currently, there is active pressure on financial institutions to modify loans for homeowners susceptible to foreclosure by reducing the principal amount of those laws to the current market value of the home and many financial institutions are not inclined to do this, particularly with no financial incentive; and WHEREAS, As with the state and local governments, financial institutions have an obligation in assisting their customers to preserve the American Dream; now, therefore, be it Resolved by the Assembly of the State of California, That the State of California and local governments should explore the potential divestiture of all financial interests in banking and other financial institutions that fail to cooperate with foreclosure prevention efforts that include temporary moratoriums on foreclosures, renegotiation of mortgage principles to reflect current values, and good faith negotiations with mortgagees; and be it further Resolved, That the Assembly also supports retirement programs that adopt a similar divestiture policy; and be it further Resolved, That the Chief Clerk of the Assembly transmit copies of this resolution to the author for appropriate distribution.