Banks punishing Borrowers???

Recently I attended a function at the board on REO and Short Sales and the hosts invited a guest speaker, Head Loss Mitagator for Bank of America West Coast Division Ivan Cho who started his talk by stating if you are looking to become an REO Agent we are full and not accepting any new agents to list homes with us. This was startling given the news of several REO's on there way and the lifting of the moritorium. Next he went on to say that Bank of America's belief towards borrowers who have defaulted on their loans and are looking to Short Sale their homes the banks position is to recoup losses and have the borrowers share in the banks loss, they are asking that the borrowers sign and or pay monies in order to be released from debts by selling cars or other items and or borrow the money. The banks position is we are not letting these guys off scott free! Well my belief is that banks should be looking at each case individually and not making across the board decisions and that people who tried to modify their loans yet could not should not punished in order to satisfy the bank! The bank here is forgetting all the TARP money they were given and spent on aquiring other institutions or paying off their own debts! Why are we not upset about this as a Country? Why are we letting Banks dictate to us about our own money? It is our savings that were lost not theirs? I am obviously passionate about this and feel as though the reform needs to be at the base or foundation of the problem which always starts with attitude....