(CEP News) - Two major U.S. banks have announced they will halt foreclosures, after coming under intense pressure from U.S. politicians on Wednesday to do something to help U.S. citizens weather the financial crisis.

Citigroup announced they will be halting foreclosures starting February 12. The bank will uphold this commitment until U.S. President Obama has finalized the details of his plan to modify mortgage loans to benefit U.S. residents at risk of losing their homes.

Minutes later, J.P. Morgan announced they will also put a moratorium on foreclosures, for a three-week period, or until March 6.

Bank of America CEO Ken Lewis already announced a similar pledge earlier this week, in a hearing before the House Financial Services Committee.

On Wednesday, CEOs from Bank of America, Goldman Sachs, Citigroup, Morgan Stanley, Wells Fargo, JPMorgan Chase, Bank of New York Mellon and State Street all faced harsh criticism from representatives for allowing the financial system to come crashing down in 2008.

All said they will do what they can to boost lending and stem foreclosures to aid the U.S. economic recovery.

By Megan Ainscow, mainscow@economicnews.ca

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Posted in Categories: Economy, Releases, USA.

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