Mar 05, 2008 — See The Associated Press
While Federal Reserve Chairman Ben Bernanke wants banks to lighten the debt load of distressed home owners, the unspoken question remains: who pays the tab? Many financial firms are already lowering the amount of loans to people facing foreclosures, albeit on a small scale. It sounds palatable on Main Street, but someone on Wall Street will have to swallow the losses. "If you reduce the principal, obviously somebody will have to take those losses," said Roberto Quercia, director of UNC's Center for Community Capital and a professor of city and regional planning. "Who that is, like if the losses could be spread about many stakeholders, is the more difficult decision."
