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Inside the Head of a Bank CEO (Down The Rabbit Hole-Must Read)
Fox Business ^ | February 13, 2009 | Elizabeth MacDonald

Posted on 02/15/2009 5:01:46 PM PST by khnyny

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[Herbert and Marion Sandler, who built Golden West into a mortgage mill, made off with $2.4 bn in the deal.

The Golden West deal caused the collapse of Wachovia Corp. In its last quarterly report prior to its acquisition by Wells Fargo, Wachovia booked a huge third-quarter loss 2008 of $23.9 bn–$18.7 bn of which was a colossal golden goose egg writedown of goodwill, meaning Wachovia won the prize for the country’s biggest overpayment of a mortgage lender, Golden West.]

60 Minutes had a great segment this evening discussing Golden West, Wachovia, Wells Fargo, whistleblowers, etc. Google Herbert and Marion Sandler.

1 posted on 02/15/2009 5:01:46 PM PST by khnyny
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To: khnyny
Just read this slowly and let the combination of words roll around in your head:

...interest-only payments on no-doc loans...

Amazing.

2 posted on 02/15/2009 5:04:15 PM PST by Petronski (For the next few years, Gethsemane will not be marginal. We will know that garden. -- Cdl. Stafford)
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To: Petronski
Hello,

Scary is the word I came up with....

And now, we all get to pay, and pay, and pay...

MOgirl

3 posted on 02/15/2009 5:10:45 PM PST by MOgirl
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To: khnyny

Weren’t the Sandlers part of the Saturday Night Live skit that NBC had to pull for threat of suit?

Herbert Sandler: My wife and I had a company which aggressively marketed subprime mortgages, and then bundled them into securities to sell to banks such as Wachovia. Today, our portfolio is worth almost nothing — though at one point, it was worth close to $19 billion.

Pelosi: My God. I am so sorry. Were you able to sell it for anything.

Herbert Sandler: Yes, for $24 billion.

Pelosi: I see. So in that sense, you’re not so to speak, actual victims.

Herbert Sandler (chuckling): Oh, no. That would be Wachovia Bank.

Marion Sandler: Actually, we’ve done quite well. We’re very happy.


4 posted on 02/15/2009 5:26:49 PM PST by plangent
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To: khnyny

Thanks for posting this. It’s a great/scary read and also identifies two great websites: footnote.org and Dumb Bubble Deals.


5 posted on 02/15/2009 5:31:26 PM PST by kittykat77
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To: Petronski

This is the wet dream of the banking cartel, second only to the printing of fiat money to lend to the government and then being able to use those bonds as backing for up to 90% more to lend to the public. They get interest on all of it, based on nothing more than turning linen into a monetary unit.

Read The Creature from Jekyll Island, if you haven’t.


6 posted on 02/15/2009 5:34:17 PM PST by Ghost of Philip Marlowe (The Stimulus Package: Preamble to the Democrat's new Declaration of In Dependence)
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To: plangent
Weren’t the Sandlers part of the Saturday Night Live skit that NBC had to pull for threat of suit?

Yes. NBC = pu$$ies.
7 posted on 02/15/2009 5:35:55 PM PST by khnyny ("The demagogue is one who preaches doctrines he knows to be untrue to men he knows to be idiots.")
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To: Ghost of Philip Marlowe

Say, The Creature from Jekyll Island is not about the Federal Reserve is it? I believe that was the location of the secret meeting of one of the evil unconstitutional entities which seek to bring us to our knees.


8 posted on 02/15/2009 5:40:45 PM PST by SisterK (building an underground economy one brick at a time)
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To: Petronski

“...interest-only payments on no-doc loans...”

It’s worse than than that. Golden west had loans in which you could make any one of 4 different payments (at your choosing, month to month) starting with a low one that didn’t even pay off the interest. Essentially, it was very easy to have a negative mortgage in a short time.


9 posted on 02/15/2009 5:44:28 PM PST by yazoo
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To: khnyny

So why did Wells take Wachovia, even if for very little money? They must have thought the underlying businesses would be worth something someday.....if the ever manage to make it alive to someday.


10 posted on 02/15/2009 5:45:11 PM PST by proxy_user
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To: khnyny

Organizations funded by the Sandlers include:

American Civil Liberties Union (ACLU)
Moveon.org
ProPublica
America Votes
ACORN
Center for American Progress
Human Rights Watch

The Sandlers are credited with the invention of the “Pick-A-Pay” mortgage that allowed borrowers to pay less than the interest due on their loan each month — which increased the total amount owed by the borrower. Analysts place the blame on the near failure of Wachovia in the fall of 2008 on the “Pick-A-Pay” mortgage portfolio they acquired from the Sandler’s firm.

Sandler, Marion O
SAN FRANCISCO, CA
94111 $2,300 08/30/2008 P OBAMA FOR AMERICA - Democrat

Sandler, Marion O
SAN FRANCISCO, CA
94111 $-2,300 08/30/2008 P OBAMA FOR AMERICA - Democrat

Sandler, Marion O
SAN FRANCISCO, CA
94111 $2,300 08/30/2008 P OBAMA FOR AMERICA - Democrat

Sandler, Marion O
SAN FRANCISCO, CA
94111 $2,300 08/18/2008 G OBAMA FOR AMERICA - Democrat

Sandler, Marion
OAKLAND, CA
94612 World Savings & Loan Assoc./Executi $2,300 05/30/2007 P NANCY PELOSI FOR CONGRESS - Democrat

Sandler, Marion
OAKLAND, CA
94612 World Savings & Loan Assoc./Executi $2,300 05/30/2007 G NANCY PELOSI FOR CONGRESS - Democrat

http://tinyurl.com/bzf5z9


11 posted on 02/15/2009 5:46:49 PM PST by kcvl
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To: khnyny
60 Minutes had a great segment this evening discussing Golden West, Wachovia, Wells Fargo, whistleblowers, etc. Google Herbert and Marion Sandler.

You thought that was great? Don't you imagine that 60 Minutes would have wanted to talk to the Chairman of the House Financial Services Committee (i.e. Barney) about this egregious abuse? That's SOP at 60 Minutes, after all, to bring in some Lefty talking head. Or at least they would have spoken to Chris (Country-Wide) Dodd, the Senate Banking Committee Chairman. This was a white-wash, pure and simple. I've got twenty bucks that says no one is ever convicted for this. This was diversion from the real fraud that was Fannie Mae and Freddie Mac, and a prelude to the upcoming "victimized homeowner bailout".

12 posted on 02/15/2009 5:49:24 PM PST by pawdoggie
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To: Petronski

I was offered those when I bought my house. Didn’t seem logical since my goal was to gain equity. Of course I also bought a house I could afford.


13 posted on 02/15/2009 5:51:50 PM PST by Republic of Texas (Socialism Always Fails)
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To: khnyny

The Sandlers are prominent lefties, I hear.


14 posted on 02/15/2009 5:52:30 PM PST by clintonh8r (Bill and Hillary Herpes....they never go away.)
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To: proxy_user
So why did Wells take Wachovia, even if for very little money?

Wells does believe Wachovia will contribute to earnings within a year or two.

They were in negotiations with the FDIC at the same time as Citi. Citi looked like the winner (if you can call it a win). Then a tax change dramatically increased the tax benefit of Wacky bank's losses. I believe the change is worth something like $70+ billion to Wells over several years.
15 posted on 02/15/2009 6:04:54 PM PST by javachip (TARP - proof there is no situation so bad that government can't make it worse.)
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To: khnyny

bump


16 posted on 02/15/2009 6:08:17 PM PST by Munz (Infiltrate Interrogate Eradicate NEXT!)
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To: khnyny

Little details:

First, given the price of houses in California back then (peaking at something like $600k), this Thompson guy seems to think that Golden West managed to find only households with incomes of $200k or more.

Second, what he didn’t bother to mention was whether the loans were documented, or did they just take the word of the borrower...I think that I know that answer.

It really wasn’t hard. All Wachovia had to do was pull some of the real loan documents and investigate who the people were and whether they could pay it back. It’s called due diligence and people need to go to jail for what not doing it.


17 posted on 02/15/2009 6:11:39 PM PST by BobL (Drop a comment: http://www.freerepublic.com/focus/f-chat/2180357/posts)
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To: khnyny

It is worth noting that one of Wachovia’s earlier acquisitions, First Union, put together the first Morgage Backed Securities (MBSs) backed by sub-prime Community Reinvestment Act mortgages, in concert with the now-defunct Bear Stearns.

October 20, 1997
First Union Capital Markets Corp., Bear, Stearns & Co. Price Securities Offering Backed By Affordable Mortgages
http://www.freerepublic.com/focus/f-news/2090118/posts


18 posted on 02/15/2009 6:12:36 PM PST by FreedomPoster (Obama: Carter's only chance to avoid going down in history as the worst U.S. president ever.)
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To: AdmSmith; Berosus; Convert from ECUSA; dervish; Ernest_at_the_Beach; Fred Nerks; justiceseeker93; ..
look inside Wells Fargo, you will find the worst of the mortgage lenders housed in this bank, Wachovia, which Wells Fargo bought last fall for $15.4 bn, and housed within Wachovia is Golden West Financial, which Wachovia bought for a stupefying $25 bn, Golden West, the purveyor of some of the worst junk mortgages in the country.

19 posted on 02/15/2009 6:23:05 PM PST by SunkenCiv (https://secure.freerepublic.com/donate/____________________ Profile updated Monday, January 12, 2009)
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Bank of America Tender Offer
Scottrade, Bloomberg | 2/15/2009 | Myself
Posted on 02/15/2009 4:01:51 PM PST by demoskowitz
http://www.freerepublic.com/focus/f-news/2186400/posts


20 posted on 02/15/2009 6:23:50 PM PST by SunkenCiv (https://secure.freerepublic.com/donate/____________________ Profile updated Monday, January 12, 2009)
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