BlackRock chairman critical of foreclosure prevention plan

BlackRock chairman Laurence Fink took aim at President Obama’s foreclosure prevention programs yesterday, saying that he’s “very worried” that the administration’s fixes may have an adverse effect on the mortgage market recovery. “How do we get a vibrant securitization market back when we are doing these things in the short run that are good for the banking system and good for the homeowner but not as good as it should be?” Fink said. Of particular concern, said Fink, is that foreclosure prevention policies put in place this year don’t mandate that home-equity loans be wiped out before mortgage modification. “There is modification going on protecting our banks, protecting their balance sheets,” Fink said. “This to me is one of the biggest issues facing American capitalism.”