~snip~ Second, we'd invite our readers with some expertise in this area to look over the document for things we might have missed ~snip~
PDF link referenced in the piece: http://www2.nationalreview.com/dest/2008/06/20/bofa.pdf
If the lenders take this “bailout” from the government, they should be required to use the government pay scale. No more huge CEO payouts when taking the government’s dime this shamelessly.
I'm happy to see my Senator Kit Bond is one of the few tenacious Republicans.
Brewing scandal, ping..
Dodd==>Resign! If I were doing business at Country Wide, I’d be down there demanding my VIP treatment too.
Estimates from;
http://jphilipblog.wordpress.com/2008/06/19/chris-dodds-sweetheart-mortgages/
Dodd was not charged about $7500 for the Washington Townhouse, and perhaps paid $2-3000 less for his Connecticut home. That is roughly $10,000 which would have been rolled into the closing costs. He saved roughly $200 per month on his combined payments.
Chris Dodd ought to be jailed for bribery.
Frankly, I’m surprised that Dodd has skated by unscathed as long as he has. Wasn’t he the DNC Chief during the Toon’s campaign against Dole? I recall him in the booth during the republican convention. Wasn’t that the era of Chinagate, “no controlling legal authority,” Al and the Iced Tea, etc.? Yet Dodd was above it all despite his position where he had to be in it up to his neck.
Hugest subprime scandal via Countrywide is in the west.
The way I see it; the federal payout for the pay-up will be the feds, via taxpayer dollars, that way both and the middle "playah's" are satisfied. So, this deal does not surprise me in the least.
Second, this deal would automatically go to payout the "indebtedness" in the West to whatever bank/mortgage lenders Wachovia is purchasing. In essence, Wachovia is paying reparations for ever having been a Bank in the South. Whereas Little Italy, BofA, arose in San Francisco, never really having a "slavery past". It's "clean" to do business with any "reparations conscious" City or Government Entity in the South and East.
In this way, the Dems get to do what they always do: Carpetbag.
It’s pretty simple. Countrywide (NYSE: CFC), the largest mortgage originator in the country, was on the verge of declaring a bankruptcy which could create panic and as a result could pull most of the rest of the industry banks and stock market down big time. BoA (NYSE: BAC) stepped in that evening and bought CFC with the [backchannel, implicit] blessing of Fed, regulators and Capitol Hill banking committee, with the [implicit] understanding that BoA may get some favorable treatment in the future to compensate for bailing out (really bailing out) and taking on a huge debt and risk of uncertain loans value on balance sheet of Countrywide. Since then, balance sheet of CFC has actually deteriorated and there were rumors of BoA reneging on the deal. Good troopers at BoA are sticking by their word and contract and going forward with the deal.
This was before what was termed, but was not really, a “bailout” of Bear Sterns by JP Morgan (NYSE: JPM), engineered by the Fed, but it was done for essentially the same reason - prevent / stop the market and consumer panic and prevent tying up in uncertainty millions of mortgage loans and bundled derivatives.
In other words, this bill is done for benefit of BoA and other similar players, but not because of previous political contributions to certain politicians, it’s simply giving back for the role they played in bailout, to their and their shareholders’ detriment. BTW, you might notice that BAC and JPM stocks have not suffered as much as many other financial stocks, such as Citigroup (NYSE: C).
These banks need to recapitalize, and Fed has already done as much as it could with discount rates, discount windows and auctions. It can’t do anymore without taking dollar even further down and exacerbating inflation even more. Hill is working on different legislations, while unfortunately Dems are using the need for banks’ recap to suit their own goals, among others to bolster Fannie Mae (FNM)and Freedie Mac (FRE).
ping for tomorrow.
Nothing to see here with Chris Dodd. I’m sure its all just a coincidence. He is a Democrat, so he has the best of intentions. Richard Shelby should be investigated, though!
I’m not a banking & finance person but I do know from inside experience that California’s state & local child “s’port” program is contracted BofA to collect & distribute support payments @ the old Meclellan AFB in the “State Disbursement Unit.” Therefore, BofA has the 411 including but not limited to social security #’s, case details, etc., on all active child support cases. FYI. I left BofA after more than a decade primarily for this reason - they have too much info and they’re assisting the hefty bureaucrats make FAT BANK in the name of (all together now) “For the Chid’ren!” In the meantime, these bureaucrats regularly attend conferences at resort hotels and in swanky diggs in Washington, DC; create more and more regulations, engage with other agencies (DMV, TANF aka Welfare, etc.) and basically, we proletariats get to finance this without ever voting on it. It’s extremely shady; BofA is all in it and without a doubt, would love to get their hands into the till’s of the other states, tribes and territories. FYI.
Commentary - Bank of America PAC money behind Dodd's Countrywide loan
BTW, guess the names of two candidates to receive more of Countrywide's PAC money than Dodd this election cycle....
And guess who got just bit less than Dodd...
Answers at the link.
And a pox on all of them.
I'm no green eyeshade guy, but it makes interesting reading to my mind...
Bill Requires All Credit Card Companies to Report ALL Transactions to the Government
43% of $400 Billion is one big ass number.
ping
When you are in “public/private” partnerships with what was formerly a private business, the business, as your partner can write legislation favorable to themselves, because the goal of a “public/private” partnership is for the government to take profit from the business, and the business to be a full and active ‘partner’ of the government.
Bank of America, Wells Fargo, and Citibank to name a few, all
“partnered” with the federal government to give loans to illegal aliens and to give loans to Mexicans in Mexico, as part of the Partnership for Prosperity plan President Bush set forth a few years ago. All the hubbub about subprime loans on the part of the government is feigned, it was they who encouraged the banks to make these bad loans. The banks, in return, got federal policy relaxed, and got special deals from the Mexican government to operate in Mexico, and to be a source for foreigners in this country to send their remittances out of country (that’s a $90 billion a year business for the US alone).