Clinton told her, “There are some people who, in your words, would be considered to game the system, but the overall problem is so big that I don’t think we can be focused on the few that might benefit unjustifiably.”

In Clinton’s eyes, Wall Street is responsible for the foreclosure crisis, not those who signed expensive loans. “Wall Street helped create the foreclosure crisis, and Wall Street needs to help solve it,” she in her speech to Wall Street.

Clinton warned if investors would not agree to her plan to freeze foreclosures, she would require them to by law. “If we cannot reach a voluntary agreement [with Wall Street], I will consider legislation to address the problem,” she said.

To sweeten her offer, she said she’d give “legal protection” to those who went along with the plan. “I am prepared to consider giving legal protection to servicers and others who administer these loans and who do the right thing by balancing the interests of the homeowners, the investors, and our economy,” Clinton said.

President Bush is scheduled to make a speech about the housing crisis and offer his own relief plan Thursday.