JPMorgan Chase & Co. employs 5,800 at its Delaware credit card headquarters, says spokesman Paul Hardwick. MBNA successor Bank of America Corp., which is considering massive layoffs, is an even larger Wilmington employer.
The governor and the (separately elected) attorney general, both Democrats, "do appear to have a different perspective on this," Markell spokesman Brian Selander told me.
Biden sent this statement: "My job is to protect homeowners, investors and all Delawareans affected by the abuses of the mortgage industry that created this economic crisis. I do not settle matters that have not been investigated, and there remains a lot of work to be done in understanding the scope of the mortgage industry's bad conduct that has hurt so many. Our economy works the best when everyone plays by the rules, and we must hold those who brought our financial system to the brink of collapse to account."
"Because these changes reduced homeowners’ gain from filing for bankruptcy, they reduce default rates on unsecured debt. And because homeowners’ ability-to-pay is fixed in the short-run, these changes are predicted to increase default rates on mortgages." Indeed, Li and colleagues found the Biden-backed bankruptcy reform, by 2005, had increased home loan default rates "50% for prime mortgages and 7% for subprime mortgages," and a lot more for subprime mortgages over $125,000.
In championing his home-state credit card business, Sen. Joe Biden ended up feeding the home foreclosure crisis. Now AG Beau Biden is demanding state investigators get to the bottom of the mortgage mess. But Gov. Jack Markell has moved into Biden's father's old shoes, defending the banking industry in hopes of boosting Delaware jobs.