While not specifically Spanish related, many feel that this story is reflected worldwide and that banks are just looking to protect themselves and their shareholders and not helping normal mortgage payers as promised, even after seeking huge financial injections from world governments.
The story stems from new evidence to suggest that the USA government's plan of injecting 50,000 million Euros to refinance mortgages is breaking down. A large number of the applications that would benefit from this plan are being stalled because banks are reluctant to modify mortgages they have already issued.
"Banks are not doing a good enough job," said a report. In particular, it said that the government should make public the names of those firms that are moving slowly to reduce fees on mortgages.
"Many firms should be ashamed, and I will name them," said Michael Barr, an adviser to the secretary for financial affairs department of the U.S. Treasury.
There certainly seems to be a need for much greater transparency here and it will be interesting to watch developments unfold to ensure that public funds really do reach their intended recipients.
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