Hillary Clinton is threatening to pursue greater regulation of Wall Street unless investors agree to volunteer measures to staunch the flow of mortgage foreclosures.
Speaking at the NASDAQ today, Clinton had harsh words for the financial hub of the U.S. -- and of the state she represents in the Senate.
"Wall Street not only enabled, but often encouraged, reckless lending," she said.
She wants Wall Street to agree to putting a voluntary moratorium of at least 90 days on foreclosures of owner-occupied homes; freezing adjustable rate loans for five years, or until subprime mortgages can be converted into more affordable loans; and requiring the mortgage industry to release detailed statistics on the number of mortgages it is modifying to make them more affordable.
If Wall Street doesn't play along, she said, she will pursue legislation.
Perhaps not wanting to be overshadowed on an issue that he has been emphasizing on the trail, John Edwards is also unveiling today an expanded prescription for combating the foreclosure crisis.
He says interest rates should be frozen or kept low for seven years to help families and the housing market recover. He would mandate that all mortgage companies offer certain potential fixes, like conversion to a fixed-rate mortgage or forgiveness of part of the loan, to people facing foreclosure. And he would give bankruptcy judges the power to rewrite mortgages on family homes.