February 3, 2008 (LPAC) Los Angeles -- A document posted on the website of the City of Carson, California identifies the League of California Cities as being engaged in a fraud, to counter the momentum building in support of the Homeowners and Bank Protection Act (HBPA) among city governments in California. The Carson City Council has scheduled a hearing for this week on the HBPA, as members of the City Council have been engaged in discussion with the LaRouche Youth Movement about the importance of passing a resolution, to increase the pressure on California's Congressional delegation to introduce and back the HBPA.

The posting identifies Ann Marie Wallace, former regional manager of the League of California Cities, as advocating that the City Council hold off passing the resolution. Wallace is cited as saying that the League believes that HBPA "leans toward Proposition 98," which the League opposes. This is a transparent fraud, as Prop 98, which is on the June ballot, addresses the issue of eminent domain. Sponsored by the Howard Jarvis Taxpayers Association, the notorious anti-tax organization, this resolution is completely unrelated to the issues raised by the HBPA, which calls for a moratorium on foreclosures, and the establishment of a firewall to protect federal and state chartered banks from the collapse of the speculative markets in mortgage-backed securities, CDOs, and other categories of increasingly worthless speculative financial paper.

City Councilmen and other local elected officials must investigate why the League would make such a transparently fraudulent claim, which serves to protect speculators and financial predators, at the expense of homeowners and local communities. California cities are among those most devastated by the collapse of the housing bubble.