What deal is Bushco making with investors who've assumed foreclosed loans?

[Joe Fields]

I hear a deal is being worked out, but the details are sketchy. I always get nervous when the MSM says "the details are sketchy." I do know that they said the deal was tricky, because home mortgage lenders didn't want to be stick with millions of homes, and so they sold the notes to private investors.

My question is this: What is the administration offering these private investors, as an enticement to keep interest rates frozen? Is this going to amount to another bailout at taxpayer expense? What is the incentive for these investors who bought the loans? They aren't going to do the right thing out of the goodness of their heart, and unless they are forced to hold interest rates frozen by the government, there just has to be a payoff there somewhere.

And, as Erin Burnett pointed out last night, it is a coincidence that the three states critical to a republican victory in November just happen to be three of the states that were hardest hit by the mortgage crisis: California, Florida and Ohio. Hmmmm.....

What is being offered?

[napi21]

1. Here's 2 links

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article2980298.ece

These parties have agreed in principle to freeze the interest payments on a portion of the so-called adjustable rate mortgages that are due to be reset next year as their lower introductory rates come to an end.


Another link

http://online.wsj.com/article/SB119646960597110177.html?mod=googlenews_wsj

[papau]

3. What law gives the Banks the right to agree to anything after Collateralized Security Sale?

[Joe Fields]

4. Thank you for the link, but that still doesn't answer my question.

Why does the Secretary of the Treasury need to step in, unless an enticement of money is being offered? Certainly these lending institutions don't need the government to shed a little logic on the situation. I would think that corporations such as Citigroup have enough sense to freeze rates on their own, unless I'm missing something.

I am not an expert on these matters, and so I was wondering just exactly why the government is brokering a deal. Being highly skeptical of this administration on everything they do, I naturally smell something very fishy.

[papau]

2. Mortgage-backed Securities & Collateralized Mortgage Obligations can't be changed - so how does

Bush get around the law?

It is not like the Bank is agreeing to take less - The Bank has no right to agree to take less if they sold their mortgages - as almost all banks did - into Mortgage-backed Securities & Collateralized Mortgage Obligations. The Bank sold the promised cash flow and now the buyers of that cash flow from many mortgages from many banks must agree to the cash flow changes.

What is proposed is not legal - so how can it be accomplished?

[Joe Fields]

6. As a layman, this is what I'm wondering. What has me worried is that

a bailout of these institutions by the federal government, using taxpayer money may be at hand.

[sam sarrha]

8. a bailout of home owners by rewriting predatory loans would save our reputation in the world and our

economy

[Joe Fields]

13. We should not be in the business of propping up flagging corporations

that have been grossly mismanaged. I damned sure don't want my tax dollars going toward greedy motherfuckers who screamed for deregulation, until they fucked their company up so bad that now they want a handout.

[sam sarrha]

15. i am only refering to rewriting preditory loans.. giving people a grace period till then..

[papau]

11. I agree - an S&L number 2 - but this time saving rich investors - not depositors n/t

[Warren Stupidity]

5. Silverado

Neil Bush was a member of the board of directors of Denver-based Silverado Savings and Loan during the 1980s' larger Savings and Loan crisis. As his father was Vice President of the United States, Neil's role in Silverado's failure was a focal point of publicity. According to a piece in Salon Magazine, Silverado's collapse cost taxpayers $1 billion.<2>

The US Office of Thrift Supervision investigated the failure of Silverado and determined that Bush had engaged in numerous "breaches of his fiduciary duties involving multiple conflicts of interest." Although Bush was not indicted on criminal charges, a civil action was brought against him and the other Silverado directors by the Federal Deposit Insurance Corporation; it was eventually settled out of court, with Bush paying $50,000 as part of the settlement, as reported in the Style section of the Washington Post <3>.

http://en.wikipedia.org/wiki/Neil_Bush


They are connecticut yankee gangsters, gangsters with a twist of lemon in their gin and tonic and a rent-a-cowboy costume for the peasants they con into voting for them.

[Joe Fields]

9. let's not forget the savings and loans that the other two Bush brothers

were involved in that collapsed, while they made off with tidy sums of cash.

These assholes want deregulation, until their greed and gross mismanagement do them in. Then they come crying to the government to bail out their sorry asses.

[sam sarrha]

16. neil apparently warned Silverado about audit thru WH insider info, after saving the crony's and

costing the tax payers 5 billion dollars.. those cronies gave him a $22,000,000 loan with no interest or repayment schedule

just a little trivia in case you ever wondered why the Shrub became president.. Neil was groomed to be president, bur apparently didn't want the grief, so he took the money and ran. he now owns a Tutoring company to help rich peoples kids pass the failed 'no child LB..' program

NCLB was a covered up failure in texas, they 'forgot' to include the 48% high school drop out rate and the ethnic connection. gov perry had the scandal covered up with a 4 line little box in the back of the paper to cover his sorry ass

[sam sarrha]

7. this was never anything other than an election ponzi scheme, started before bankruptcy was removed

from the middle class and the poor

[sam sarrha]

10. are any of the people in this chart involved in this Ponzi Scheme..??

http://www.bushwatch.com/bushmillions.html

http://www.google.com/search?hl=en&q=personal+wealth+of+george+w+bush&btnG=Google+Search

[Blackhatjack]

12. A direct transfer of taxpayer funds to banks/mortgage holders would be illegal, however...

It appears that 'the plan' is to allow the big players enough time and leeway to divest themselves of a major portion of their loss inflicting portfolio, and delay the inevitable crushing consequences until AFTER the 2008 election.

THe hedge funds are moving actively to share the losses, protect their biggest investors, and the Bush Administration is planning to delay the worst of the crisis until the next Democratic President and Congress takes office and has to deal with it.

Bottom line --some of the rats are allowed to escape the net, and the economic crash cannot be avoided, but it can be delayed to accomplish political purposes.

[Joe Fields]

14. There's an answer that makes sense of this situation. Thanks.

Given what we know of this administration, and their modus operandi, it fits perfectly.

[Blackhatjack]

17. In the end all the gyrations are designed to protect the deep pocket friends, not American People

Reports continue to leak out that Hedge Funds are sitting on HUNDREDS OF BILLIONS of dollars in losses which bleed into Financial Industries 'off the books' holdings.

The Hedge Funds are 'into the major financial industry' too deep to go down without taking the major players with them --and that includes other countries like Saudi Arabia who is the largest shareholder of Citigroup.

So you see that the actions being taken at this time are about delaying the inevitable and spreading the inevitable damages to as many others as possible. All the happy talk about the Economy is part of the plan --and the Bush Administration is doing its part to make it happen.

[Joe Fields]

19. We will never be made privvy to the "details" of this proposed agreement.

The audacity of this administration never ceases to amaze me. I don't believe that too many people are buying into the happy talk, but yet these crooks and their henchmen (MSM) keep right on shoveling it. At this point they're just trying to run out the clock.

And most likely, whoever becomes the next president will get blamed for the lion's share of economic trouble.

[sam sarrha]

18. i always thought it wes a RICO Ponzi scheme, maybe just a suicidal chest move

http://www.bushwatch.com/bushmillions.html