NYC pension funds want bank foreclosure auditsSubmitted by bobbyw24 on Tue, 11/16/2010 - 14:13
By DAVID B. CARUSO
The Associated Press
Tuesday, November 16, 2010; 12:32 PM
NEW YORK -- The trustees of New York City's government pension funds asked the directors of four major banks Tuesday to play a bigger role in policing company foreclosure practices.
City Comptroller John Liu said the retirement system owns about $1.77 billion worth of stock in Citigroup Inc., Wells Fargo & Co., JPMorgan Chase & Co. and Bank of America Corp. - an investment that could take a hit if the banks mishandle the mountains of bad home loans facing the industry.
Liu said the trustees have become concerned in recent months about a variety of reported problems in the way banks are handling foreclosures.
Saying the problems suggest "a larger systemic failure," Liu said the trustees have filed a shareholder proposal calling for the banks' directors to perform independent audits of internal controls over the foreclosure process and report back by Sept. 30.