Tag: FHFA

Sep 07 2011

On Bilking The Sophisticated, Or, Check It Out: We’re Suing Banks!

I took a break to enjoy the holiday, as I’m sure many of you did, but my inbox kept busy, and on Friday came a doozy, courtesy of the Washington Post.

You remember that little bit of a banking crisis we had a couple of years back, where banks around the world might have possibly, maybe, just a little, conspired in a giant scheme to package toxic mortgage loans into Grade A, investment-ready securities instruments, which then blew up in everyone’s faces to the tune of a whole lot of taxpayer bailouts?

Well all of a sudden, it looks like an agency of the Federal Government is looking to do something about it, in a real big way.

Last Friday the Federal Housing Finance Agency (FHFA) announced they’re suing 17 firms (I’ll give you a list, bit it’s pretty much all the usual suspects); depending on who you ask the Feds are seeking an amount as high as $200 billion.

As Joe Biden would say, it’s a big…well, it’s a big deal, anyway, and that’s why we’re starting the new week with this one.

Jan 18 2011

Next Democratic Seat to be Opened in Congress

By now it should be no surprise to anyone who pulls the levers in Washington DC. The big banks. Yet some have still not got the memo …

Message to Democratic Congresspersons … check your in box.

Meet Rep. Brad Miller from North Carolina’s 13th District.

What heinous atrocity has Rep. Miller committed?

Rep. Brad Miller is raising questions about Bank of America’s settlement with the government over soured mortgage-backed securities, asking whether the government got the best deal for taxpayers.

[..]In the letter to the Federal Housing Finance Agency, or FHFA, Miller and the others question whether the $3.3 billion settlement represents “the real liability” that Fannie and Freddie bear “as a result of the misrepresentations and breaches of warranty” by the two banks. “Specifically, we request information on how the FHFA determined that the combined $3.3 billion settlement represented the best possible recovery of funds available to taxpayers,” the letter said. In addition to Miller, it was signed by Rep. Keith Ellison of Minnesota, Rep. Stephen Lynch of Massachusetts and Rep. Maxine Waters of California.

The majority of the settlement payment stems from investor put backs by bad deals from the Countrywide balance sheet. Following me? At the height of the economic meltdown Countrywide was purchased by BofA. Bank of America is based in North Carolina.

Unless Rep. Miller didn’t get the memo he should immediately call Illinois Governor Rod Blagojevich and ask what happened to his career career after taking on BofA.