The California Legislature is now aggressively collaborating in the banker's coup detailed by Government Sachs. Here are the details:

On Feb. 27, 2009, Gov. Arnold Schwarzenegger signed the California Foreclosure Prevention Act, authored and announced by California Assembly Member Ted Lieu, a Democrat representing California's 53rd Assembly District. The California Democratic Party Caucus website still proudly proclaims that Lieu's legislation is "one of the most comprehensive and significant pieces of legislation in the country to stem the tide of foreclosures and get our economy back on track," but it's probable to save as many homeowners as the state lottery, if that.

Why? The law that Lieu's Assembly Bill 27 creates is supposed to give homeowners an additional 90 days to somehow cope and/or negotiate home loan modifications. However, at the very same time, the law requires the California Departments of Corporations, Financial Institutions and Real Estate to automatically grant "temporary exemptions" to any mortgage lender that submits a "substantially entire application" claiming it has a "comprehensive loan modification program" in place.

And all the major banks, which are foreclosing on 90 percent of the distressed loans in California, lined up for exemptions on June 15, the day the act went into effect, and got exemptions within 24 hours.
Article source: http://www.sfbayview.com