The Conservative Cave
Current Events => Breaking News => Topic started by: Chris_ on September 02, 2011, 12:10:25 PM
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The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.
The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the matter.
The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified.
New York Times (http://www.nytimes.com/2011/09/02/business/us-is-set-to-sue-dozen-big-banks-over-mortgages.html?_r=1)
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Idiots. The banks were ORDERED to do this by the Feds.
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Idiots. The banks were ORDERED to do this by the Feds.
Well, that's our government for you...damned if you do and damned if you don't.
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Could get to be VERY interesting trial testimony.
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Idiots. The banks were ORDERED to do this by the Feds.
They were ordered to provide the mortgages. Nobody told them they had to package and sell them as investment vehicles, which the banks did on their own.
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Well, that's our government for you...damned if you do and damned if you don't.
That's what happens when you bargain with the Devil.
Jefferson once said, "Government at it's best is a necessary evil... and at it's worst is an intolerable one." You'll notice that wherever your own particular government falls on his scale IT'S STILL EVIL.
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They were ordered to provide the mortgages. Nobody told them they had to package and sell them as investment vehicles, which the banks did on their own.
Isn't that banks' standard procedure? Our mortgage, back in the 1980s through 2000, was held by at least 5 different banks.
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I don't know.
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I don't know.
From month-to-month, we never know who held our mortgage. I'm sure glad I don't have to worry about that now; this place is owned free and clear, except for county and other taxes.
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So --
Banks are required to make loans to risky borrowers, else pay penalties -- but they aren't allowed to attempt to recoup some of that loss via investment.. :whatever:
The solution is pretty simple - if one doesn't have the cash or credit to buy a home, one rents.
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So --
Banks are required to make loans to risky borrowers, else pay penalties -- but they aren't allowed to attempt to recoup some of that loss via investment.. :whatever:
The solution is pretty simple - if one doesn't have the cash or credit to buy a home, one rents.
Not in the world of liberalism. Remember? Spread the "wealth," although no specifies what the "wealth" is.
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When is someone gonna investigate Bwaney Fwank & Chris Dodd and their relationship with Freddie & Fannie?
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Could get to be VERY interesting trial testimony.
that was my initial response too
unfortunately, the damage is done. story line is "banks sue'd". so even if it comes out in testimony that it was fed policy to do what they did, the general public will not hear about it and the democrat-media complex wins in its rewriting of history.
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They were ordered to provide the mortgages. Nobody told them they had to package and sell them as investment vehicles, which the banks did on their own.
Exactly. The Feds deserve to burn over the DOJ's coercion of lenders to make shitty loans or be sued for discrimination (Which was under both the Clinton and Bush administrations), but the banks deserve to burn six times over for their damned 'Derivative instruments' that bundled those worthless mortgages into securities.
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When is someone gonna investigate Bwaney Fwank & Chris Dodd and their relationship with Freddie & Fannie?
I'm sure their names and associated laws will be brought up during the trial. Who knows, ObeyWon's name may come up through his ties in blackmailing community organizing to force banks to make bad loans.
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I heard on the radio that BofA is splitting up, closing 600+ branches and laying off thousands. Way to go democrats.
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I heard on the radio that BofA is splitting up, closing 600+ branches and laying off thousands. Way to go democrats.
I'm of mixed opinion about this whole deal. MANY of the bad mortgages weren't CRA type loans, which I think can only be 30-year fixed. So there was a fair amount of risk-taking done by the banks that was not mandated. And a fair amount of picking through mortgages and packaging crap mortgages that went on without mandate. At the end of the day, they were selling these loans at a premium and booking that income while retaining no risk, just like the smaller mortgage brokers. Of course, being the quasi-government entities that FRE and FAN are, they don't hire the best and brightest, and are easy to screw over. That they shouldn't even exist in the first place is a whole other issue. It very well could be that the proper information was disclosed and the idiot analysts at FRE and FAN were simply too stupid to understand it.
Now, BofA was screwed with the Countrywide purchase, but it was their choice, even if pressured politically. At the end of the day, there's a few of the big banks that should have simply gone under, period. BofA was one, Citi another.
ALL of their loans should have been sold to more responsible banks for pennies on the dollar, with no bailouts, and then the mortgages could have been negotiated at a profit to the banks that bought the loans, foreclosures would be lower, the glut of homes on the market would be lower, etc. All from allowing market forces to operate.
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Westchester County, N.Y. is having quite a ration crammed down their throats by the Soetoro/Holder thugocracy with HUD being used as the hammer~
http://newyork.cbslocal.com/2011/07/27/westchester-county-executive-meets-with-hud-secretary-in-washington/
Hannity video here~
http://news.yahoo.com/video/opinion-15749653/feds-accusing-nyc-suburb-of-segregation-26553460.html
I think what it boils down to is the current regime doesn't like that Westchester County not is quite as blue as they would like it to be. Full of those rich nasty racist republicans who need a good comeuppance, dont'hca know...
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What's the problem? Have they not imported enough section 8 criminals?
Not only do democrats want to spread your wealth around, they've used your wealth to spread the crime around...ala section 8.