Revoke Bank Charters

Apparently, banks are still mired with mortgage mess. As this article points out, one of the attorney generals walked away from settlement discussions to settle the mess with bank -- Massachusetts' attorney general used five banks for illegal foreclosure and loan servicing issues (ummm robo-signing).

Lawsuits are one way to go. But corporate entities, like banks, are fictitious creatures. What does that mean? It means that these entities are created by documents. Government agencies approve these documents to create the entities. Banks are one of them. Federal banks are created with a charter approved by the Office of the Comptroller of the Currency (OCC). OCC approves the charter, regulates, and supervises national banks.

So, I'm just wondering, if banks are not playing by the rules, couldn't the OCC revoke bank charters? And if it can, wouldn't that be simpler? Just a thought as we still hear about mortgage mess created by banks.