Contrary to promoted theory, I believe mortgage assets on the books of banks should be marked down to current Real Estate values & loan payments adjusted down to reflect the contracted principle amounts. There is risk in banking and it’s time banks shoulder that risk. Home owners have absorbed the losses from declining Real Estate value, while Financial Banking Houses continue to roll in profits.
Banks have had enough time to accumulate cash to cover bad debt losses. They haven’t missed a beat on dividends and bonuses in the last 2 years. If they can’t cover the loss and remain solvent, shut them down. Greed doesn’t accumulate any mercy points.