You didn't see any politicians complaining about the excesses of the market when it was driving home home prices in their area and funding an economic boom. Where were they then? Who didn't know that bad mortgages were being made? Are these politicians that stupid that they didn't know it was going on? If they didn't they are stupid; if they did then why didn't they take action to stop it then? It is too late now.
If I were the banks, I would hold a big press conference in Cleveland and say something like "due to the potential lawsuits, we have ceased all work-out efforts with mortgagees. Unless and until it is clear that we will not be later sued for making efforts beyond the scope of our contracts with the mortgagees, we will work to contract." Then you can watch the politicians grand stand and then quietly drop their suits.