Atlantis Financial of Hong Kong Highlight Bankruptcy Law Shortcomings as Foreclosures Offset Gains

According to sources, top researchers from the prominent private equity firm, Atlantis Financial, say that the largest U.S. savings and loan didn't count on a housing recession (when it called for the revised bankruptcy code).

Sources have reported that the new bankruptcy laws are helping drive foreclosures to a record as homeowners default on mortgages and struggle to pay credit card debts that might have been wiped out under the old code.

Atlantis Financial’s researchers apparently feel that the revised code is proving to have an adverse effect for the very people who called it into being. According to a statement by a spokesperson for Atlantis Financial, US loaners wanted to ensure that people kept paying their credit cards, and instead what they are getting is more foreclosures.

Recent reports showed that Washington Mutual, Bank of America Corp., JPMorgan Chase & Co. and Citigroup Inc. spent $25 million in 2004 and 2005 lobbying for a legislative agenda that included changes in bankruptcy laws to protect credit card profits.

Apparently analysts at Atlantis Financial feel that the banks are still paying for that decision. Apparently, Atlantis Financial spokesmen recently announced that the surge in foreclosures had cut the value of securities backed by mortgages and led to more than $40 billion of write-downs for U.S. financial institutions.