“‘What I saw is someone who is not for sale,’ Katie Porter told the Prospect.”
by David Dayen July 29, 2024
Snippet (no paywall, and it’s worth the click):
At the risk of repeating myself until the end of time, I continue to be annoyed that Kamala Harris and her allies emphasize how she “stood up to the big banks.” In reality, nobody stood up to the big banks after the 2008 financial crisis. No executive saw a prison cell for the mountain of fraud committed; their companies only got bigger, nearly all of the penalties imposed on them amounted to taking the air out of their books; homeowners saw virtually no relief (literally less than 10 percent of what was promised); and millions of families lost their homes unnecessarily and in most cases illegally. To elevate that as some kind of accountability moment is an insult to foreclosure victims.
But I want to make myself clear: Nobody stood up to the big banks. Harris was no worse than any of the other law enforcers who brought us that shameful course of events, and at least in one key area, she was actually better. Harris insisted that California have its own monitor for the National Mortgage Settlement, someone who could scrutinize banks’ compliance with the terms of consumer relief and improve it to the greatest extent possible. (emph. mine-A)
That monitor, who made the very best of a bad deal, ensuring that California wound up playing host to nearly two out of every five principal reductions granted in the settlement (the most sustainable form of relief), was Katie Porter, then a law professor at the University of California, Irvine. You now know her as Rep. Katie Porter, who served three terms in Congress—and it was her experience as California monitor that really launched her career in politics. She happens to be the only person now in Congress who has actually worked for Kamala Harris, and so I tracked her down to talk about that experience. (snip)
There was a national monitor for the $25 billion settlement, North Carolina banking commissioner Joseph Smith. But other than California, no state had one. “This position was a creature of [Harris’s] will,” Porter told me. “She pushed to get something like this. The banks didn’t want it.”
When the time came to choose a monitor, Porter explained, Harris wasn’t steeped in consumer protection issues, having just become attorney general a year earlier after a career as a prosecutor in criminal cases. So she asked Elizabeth Warren, who at the time was still a Harvard law professor, for advice on who to choose for the position. Porter had been Warren’s student at Harvard Law and had co-authored a book with her. So Warren asked Porter to identify possible monitors. Porter suggested three other people, including the current director of the U.S. bankruptcy trustee program, Tara Twomey. Ultimately, though, Harris selected her.
Of the issues where Porter thought she could be most helpful, she cited affordable housing.
(snip-More on the page)
https://prospect.org/politics/2024-07-29-member-congress-worked-kamala-harris-katie-porter/
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