Representative Miller speaks out against the Treasury attempts at keeping banks solvent here

Representative Miller speaks out against the Treasury attempts at keeping banks solvent here.  I first heard of the story on Naked Capitalism

The banks and servicers would not being doing anything if they were not making money. They are cash machines. Anytime you can charge a million accounts 40 $ a month it can add up.
I don't think it is uncommon for large companies to try to hit customers with modest fees that often go unchallenged because of the time it takes to get through to complain or because these fees are seen more as a nuisance rather than actual steeling.
Imagine a cell phone company adding .99 on every customer's bill. Many people wouldn't notice and those who did notice will often just let it go.

This could generate 5 or 10 million extra dollars a month. I am sure the servicers have a similar tactic.
It is another smoke screen by banks to avoid having more toxic assets on their books with no chance of return. Or most simply put, it is to avoid talk of insolvency. Once foreclosure is complete, the cost of holding a property skyrockets for the bank. The longer they allow it to be occupied the longer they can wait to take on management, which is extremely expensive just to comply with local ordinances and codes. Imagine just hiring yard service to keep the lawns cut on a 100,000 homes.... and in winter....most cities have ordinances that say the sidewalk has to be cleaned after every snow storm......

The banks would be so much farther ahead to do principal write downs and loan modification.  The losses just on REO properties will be in the millions and maybe more.

The banks are in a unsustainable position regardless of whether they are held accountable for the other issues or not.  They will need more bailout, more changes in the laws or both in order to continue avoiding the question of solvency.  As housing prices continue to decline, the problems can not be fixed by waiting for a rebound in housing.  There are so many properties that have not even hit the market yet and they will be taking prices down further. 
I was pleasantly surprised by the comments by Rep.  Miller.  He definitely seems have saught wise council on the foreclosure issues.  It is nice to hear the voice of reason from the normaly outrageous politicians. 

Read the complete letter from the Financial Stability Oversite committee here.