asterisk2a + mbs   24

The Fed Sends A Frightening Letter To JPMorgan, Corporate Media Yawns
At the top of page 11, the Federal regulators reveal that they have “identified a deficiency” in JPMorgan’s wind-down plan which if not properly addressed could “pose serious adverse effects to the financial stability of the United States.” Why didn’t JPMorgan’s Board of Directors or its legions of lawyers catch this?

It’s important to parse the phrasing of that sentence. The Federal regulators didn’t say JPMorgan could pose a threat to its shareholders or Wall Street or the markets. It said the potential threat was to “the financial stability of the United States.” [...] “…the default of a bank with a higher connectivity index would have a greater impact on the rest of the banking system because its shortfall would spill over onto other financial institutions, creating a cascade that could lead to further defaults. High leverage,
corporate  media  media  conglomerate  too  big  to  bail  too  big  to  fail  too  big  to  jail  TBTF  jpmorgan  jpmorganchase  USA  GFC  recovery  liquidity  trap  repo  liquidity  squeeze  economic  history  Financial  Stability  Board  FinancialCrisisInquiryCommission  crisis  crony  capitalism  Greed  shareholder  capitalism  profit  maximisation  profit  maximization  investment  banking  retail  banking  leverage  CDS  engineering  CDO  MBS  subprime  FDIC  complexity  Fed  Janet  Yellen  Wall  Street  reflate  reflation  derivatives  credit  bubble 
april 2016 by asterisk2a
Goldman Sachs to pay $5bn for its role in the 2008 financial crisis
The settlement holds the bank accountable for its ‘serious misconduct’ in falsely assuring investors that securities it sold were backed by sound mortgages // [ 7 YEARS LATER. AND THIS IS A SETTLEMENT (both parties haggled for a price)! If prosecutors would have decided to go ahead and try prosecute in court, we would have looked for an additional 7 years wait. No including going into appeals. ]
Abacus  Goldman  Sachs  misselling  self-regulation  MBS  ABS  tranching  regulation  regulators  GFC  subprime  economic  history 
april 2016 by asterisk2a
The Real Looting of Baltimore... - YouTube
- same with mortgages linked to forex/different currency than your country of residence. // // abuse of existing instruments, not using it for intended purpose // and mis-selling of instruments and products - also see PPI ( Payment Protection Insurance ) mis-selling - // and mis-selling forex linked loans (ie to Swiss Franc) to local governemnts and cities called Interest Rate Swap Mis-selling that got exorbinant expensive following the GFC actions (NIRP) by Central Banks (black swan) // all driven by managers meeting targets, getting and wanting bigger bonuses, wanting the bosses job, ... etc driven by cottage industry of analysts 'forecasting' that profit has to rise X% etc etc. // add also For Profit Schools! in the USA targeting Veterans & other rather financially illiterate :: // biggest debt kind - mortgage and student loan debt // financial literacy also include gambling & lottery
Baltimore  Ferguson  mortgage  market  subprime  predatory  lending  practices  ninja  mortgage  UK  USA  Capitalism  crony  profit  maximisation  shareholder  value  foreign  currency  mortgage  bailout  corruption  abuse  of  power  CDS  MBS  lobbyist  lobby  Lobbying  revolving  door  Washington  GFC  toobigtofail  too  big  to  jail  TBTF  Gini  coefficient  financial  literacy  plutocracy  income  inequality  inequality  social  mobility  income  mobility  Western  World  Thomas  Piketty  economic  history  democracy  social  cohesion  libor  rigging  scandal  PPI  scandal  bonuses  bonus  Wall  Street  Payment  Protection  Insurance  mis-selling  Interest  Rate  Swap  banking  investment  banking  banking  crisis  American  Dream  Payday  Loans  debt  bubble  Super  Cycle  student  loan  debt  StudentLoans  lottery  gambling  downward  mobility 
may 2015 by asterisk2a
Regulators Repeat Exactly What They Did During the Last Housing Boom | The Baseline Scenario
Even leaving aside the specific merits of this decision, the worrying thing is that the intellectual, regulatory, and political climate seems to be basically the same as it was in 2004: no one wants to to anything that might be construed as hurting the economy, and no one wants to offend the housing industry.
political  theory  Politics  trust  lobbyist  GFC  property  bubble  MBS  confidence  political  error  Dodd-Frank  trustagent  USA  Lobbying  barackobama  WallStreet  subprime  political  folly  regulation  Lobby  policy  error  presidency  policy  folly 
august 2013 by asterisk2a
Richard Koo Explains It's Not The Fed, Stupid; It's The Fiscal Cliff! | ZeroHedge
US is beginning to look more like Japan. The Japanese experience made it clear that when the private sector is minimizing debt (deleveraging) with very low interest rates, there is little that monetary policy can do. The government cannot tell the private sector 'don't repay your balance sheets'
because private sector must repair its balance sheets. In Koo's words: "the only thing the government can do is to spend the money that the private sector has saved and put that back into the income stream" - which (rightly or wrongly) places the US economy in the hands of the US Congress (and makes the Fed irrelevant).

Deleveraging even with ZIRP & QE123 & OpTwist & Language shows how sick balance sheet of private sector is. + Lack of Confidence + Structural Impairments of Domestic & Global Economy !

Koo advocating continued fiscal stimulus.

Fed engaged more aggressive w QE3/OpTwist & ZIRP ext. because nobody would bet on Congress to avoid Fiscal Cliff 2012/13.
globalisation  global-economy  faultlines  global  imbalances  structural  imbalance  OpertationTwist  trust  confidence  lostdecade  lost  barackobama  presidency  election2012  Japan  academics  academia  economics  supply-demand  stimulus  QE2  MBS  QE  deleveraging  fiscal  stimulus  fiscal  policy  2012  Cliff  monetary  theory  ZIRP  monetary  policy  property  bubble  benbernake  Fed  debt  bubble  balance  sheet  recession  debtoverhang  QE3  USA  Richardkoo 
september 2012 by asterisk2a
QE∞ - YouTube
Ben Bernanke has boldly gone where no Fed chairman has gone before him. In his third round of quantitative he's set the controls for the heart of infinity until unemployment is substantially reduced.

- QE3 = QE∞ = buying unlimited MBS to the tune of 40bn per month
- Operation Twist to continue
- ZIRP to stay till 2014 at least
- dropping inflation target, focusing on how to get unemployment down and increasing participation list (real unemployment is much higher bc so many dropped out)

how to get unemployment down? increase demand, but consumer and households are underwater (prioritizing debt servicing, and paying down mortgage). -> buy up MBS, reduce overall supply, thus increasing demand for secure debt (banks, basel3 anybody?), Ben hopes some will borrow again to consume and start finally the new credit cycle. = Reflation.
property  bubble  balance  sheet  recession  debt  bubble  debtoverhang  USA  financial  repression  reflation  ZIRP  operationtwist  freddiemac  FannieMea  MBS  structural  imbalance  greatrecession  GFC  2012  monetary  theory  monetary  policy  output-gap  employment  unemployment  benbernake  Fed  QE3 
september 2012 by asterisk2a
U.S. banks offered deal over lawsuits: report | Reuters
(Reuters) - Big U.S. banks in talks with state prosecutors to settle claims of improper mortgage practices have been offered a deal that may limit their legal liabilities in return for a multibillion-dollar payment, the Financial Times reported on Tuesday.

The FT, citing five people with direct knowledge of the discussions, said state prosecutors have proposed settlement language in the "robosigning" cases that also might release the companies from legal liability for wrongful securitization practices.
robosigning  subprime  security  securities-fraud  securities  mortage  MBS  suit  2011  august  september  lawsuit  FHFA  settelment  fanniemae  freddiemac 
september 2011 by asterisk2a
Goldman's Dan "Shitty Deal" Sparks Sued For Selling Junk, Dogs, Big old lemons, and Monstrosities | ZeroHedge
While the FHFA has targeted lawsuits at a whole bunch of employees of the 17 banks previously disclosed, nothing gives us as much amusement and frankly pleasure, as the fact that Goldman's definition of smugness - one Dan Sparks of "shitty deal" fame, is among the accused. Perhaps, even in uber crony communist America, what goes around eventually comes around. Now, if only someone can figure out how Warren Buffett's Wells Fargo, with its several hundred billion worth of Wachovia toxic biohazard, is not on the list of defendants...

That Goldman knew of the originators’ abandonment of applicable underwriting guidelines and of the true nature of the mortgage loans it was securitizing is further evidenced by how Goldman handled its own investments.
FHFA  timberwolf  goldmansachs  security  securities  fraud  subprime  mortage  securities-fraud  2011  freddiemac  fanniemae  Abacus  misleading  GSE  MBS 
september 2011 by asterisk2a
Full FHFA Statement Disclosing Suits Against 17 Banks (Including Such Dead Man Walking As SocGen) | ZeroHedge
FHFA Sues 17 Firms to Recover Losses toFannie Mae and Freddie Mac

Ally Financial Inc. f/k/a GMAC, LLC2. Bank of America Corporation3.Barclays Bank PLC4. Citigroup, Inc.5. Countrywide Financial Corporation6.Credit Suisse Holdings (USA), Inc.7.Deutsche Bank AG8.First Horizon National Corporation9.General Electric Company 10.Goldman Sachs & Co.11. HSBC North America Holdings, Inc.12.JPMorgan Chase & Co.13.Merrill Lynch & Co. / First Franklin Financial Corp.14.Morgan Stanley 15.Nomura Holding America Inc.16.The Royal Bank of Scotland Group PLCSociété Générale

FHFA alleges that the loans had different and more risky characteristics than the descriptions contained in the marketing and sales materials provided to the Enterprises for those securities.
FHFA  2011  freddiemac  fanniemae  GSE  fraud  mortage  securities  security  MBS  securities-fraud 
september 2011 by asterisk2a
Cohan Says FHFA Pursuing All Legal Means for GSEs - YouTube
William Cohan, a Bloomberg View columnist and Bloomberg Television contributing editor, talks aboutthe possibility that large banks may be sued by the U.S. Federal Housing Finance Agency for misrepresenting the quality of mortgage securities sold at the height of the housing bubble. Cohan speaks with Matt Miller on Bloomberg Television's "InsideTrack." (William Cohan, author of "Money and Power: How Goldman Sachs Came to Rule the World," is a Bloomberg View columnist. The opinions expressed are his own. Source: Bloomberg)
FHFA  mortage  securities  securities-fraud  2011  fraud  freddiemac  fanniemae  subprime  misleading  misrepresentation  civilsuit  litigation  settelment  MBS  GSE  lawsuit  blamegame  accountability  responsibility 
september 2011 by asterisk2a
Bank Of America To Pay $8.5 Billion To Settle Mortgage (Mis)Representation Suit With BlackRock, Pimco, New York Fed Et Al. | zero hedge
Bank of America may be about to part with more money than it has earned since 2008 in what will soon be the biggest financial settlement in the industry to date According to the WSJ, the Charlotte, NC-based bank is preparing to pay $8.5 billion to settle mortgage (mis)representation claims (aka the Mortgage putback issue) brought on by such high profile figures as BlackRock, Pimco, MetLife and, of course, the Federal Reserve, 

The deal could embolden mutual-fund managers, insurance companies and investment partnerships to go after similar settlements with other major U.S. banks, arguing that billions in loans scooped up before the U.S. housing collapse didn't meet sellers' promises or were improperly managed. Most vulnerable would be Wells Fargo & Co and J.P. Morgan Chase & Co., which along with Bank of America collect loan payments on about half of all outstanding U.S. mortgages.
MBS  settelment  jpmorgan  bankofamerica  BofA  BlackRock  Pimco  fraud  misleading  misrepresentation  SEC 
june 2011 by asterisk2a
The Greatest Shell Game Ever Continues As The Whole World Is Now Insolvent; Updated Thoughts From Chris Martenson On The Upcoming US Funding Crisis | zero hedge
# Record-breaking Treasury auctions continue to go off without a hitch, thanks to massive foreign participation.
# However, the amounts reported to be bought in the auction results do not match the Custody Account or TIC report amounts.
# The Fed is allegedly all done buying MBS and Treasury paper. This cuts off an important source of liquidity for the Treasury, commodity, and stock markets.
# How will these markets respond to a liquidity drought?

Part of the explanation behind this unwavering support for the dollar and US deficit spending by other central banks lays in the fact that other Western and Eastern governments are equally insolvent. It's possible that they feel they really have no choice but to play along, because the alternative would be to inflict a vicious and deeply unpopular austerity program on their own country, while everybody else is partying on thin-air money. Who's going to be the first to do that? Nobody, that's who.
MBS  Fed  treasury  treasuries  usa  debt  stockmarket  rally  2009  2010  deficit 
april 2010 by asterisk2a
PIMCO Is Long CAD, AUD And CNY; Short EUR, GBP And JPY, And Other Disclosures By Paul McCulley | zero hedge
Q: What structural headwinds stand in the way of recovery in the U.S.?
McCulley: We believe the U.S. is in the second stage of a three-stage recovery. The economy was first propped up by policy response – low interest rates and fiscal stimulus. Currently, we are moving from the dark to the sunny side of the inventory cycle. The final stage – job creation, private income creation and self-sustaining demand growth – has yet to materialize, due to headwinds of deleveraging and de-risking.

We like to use the analogy of the three-stage-rocket; we are waiting for the thrust from that third rocket. There’s a great deal of uncertainty surrounding the hand-off from stimulus and inventories to job creation, and that is reflected in the Federal Reserve’s continued exceptionally low interest rate policy.
We believe the severe austerity measures brought on by the fiscal problems in the periphery countries, such as Greece and Spain, will lead to a chronic shortfall of Euroland-wide aggregate demand
recovery  usa  2010  inventory  greatrecession  QE  MBS  treasuries  Fed  monetary  policy  greece  spain  bailout  ECB  demand  economics  richardkoo  deflation  inflation  output-gap  china  currency  yuan  dollar  politics  timgeithner 
april 2010 by asterisk2a
Freddie Fixed Mortgage Rate Rises For Third Week In A Row, At 2010 High: End Of QE Starting To Be Felt | zero hedge
The end of QE may not have dented stocks much, but it is sure starting to be felt in the mortgage arena. It is only a matter of time before rising mortgage rates halt additional home refinancing activity, and force homeowners to take more drastic measures, such as those prescribed by the national and enforced doctrine of Moral Hazard. It is only a matter of time before the shorts in the MBS market find their bearings again and instead of covering existing positions, press new ones
MBS  Fed  mortage  usa  2010  moralhazard 
april 2010 by asterisk2a
Reshaping the Federal Reserve | MintLife Blog | Personal Finance News & Advice
Fed assets rose 2.3 percent to $2.06 trillion” by the week ending August 19, 2009 – an increase up made almost entirely of private, mortgage-backed securities. Regardless of the merits or demerits of the Fed owning these particular securities, what matters from an institutional standpoint is that the Fed can now own private securities – a major departure from long-standing precedent.
AIG  Fed  TARP  politics  economy  lehmanbrothers  BearStearns  MBS  balancesheet  recession  2010  moralhazard 
february 2010 by asterisk2a
What the New York Fed Bought in A.I.G.’s Bailout - DealBook Blog -
In his statement releasing the document, Mr. Issa argued, “It’s not conjecture, it’s not speculation, it’s fact — the New York Fed gave a backdoor bailout to A.I.G.’s counterparties and then tried to cover it up.”
AIG  bailout  henrypaulson  assets  fed  timgeithner  documents  derivatives  MBS  subpoena 
january 2010 by asterisk2a
Doubts at Fed Over A.I.G.’s $30 Billion Payout -
Lawyers for the Fed argued in the documents that it did not have the legal authority to guarantee A.I.G.’s obligations. The New York Fed’s chief counsel is expected to reiterate this point in Congressional testimony on Wednesday.

Of all the government rescues undertaken during the credit crisis of 2008, none has stirred more outrage and raised more questions than the bailout of A.I.G., a global insurer that has received $180 billion in taxpayer commitments since its collapse 16 months ago. More fireworks are expected Wednesday as lawmakers hear testimony about the insurer’s rescue from the two men most closely associated with it: Timothy F. Geithner, the Treasury secretary and former president of the New York Fed; and Henry M. Paulson Jr., the former secretary of the Treasury.
fed  treasury  benbernanke  timgeithner  henrypaulson  AIG  bailout  MBS 
january 2010 by asterisk2a
SocGen takes €1.4bn asset hit
French banking giant Societe Generale is to take €1.4bn of write-downs and provisions on US mortgage-related assets in the fourth quarter, slashing its profits in the three-month period.

The Paris-based lender said it will still make a ‘slight’ profit but didn’t provide a specific figure. Before the warning, market forecasts were for fourth quarter profits of between €850m and €960m, but these now look way too high. SocGen made a net profit of €87m in the same period last year.
SocieteGenerale  mortage  MBS  europe  financial  market  assetbackedsecurities  asset  writedowns  2009  2010  banks  bank 
january 2010 by asterisk2a
“Body Count From Goldman Actions Crosses Into Criminal Territory” « naked capitalism
Don't bet what you can not afford to lose.
She notes, accurately, that Goldman used AIG to hedge its bet on CDO’s, either for itself with the Abacus deals, or for its clients, with the Davis Square deal. Had AIG failed, Goldman would have been on the hook for the losses: to execute the CDO with synthetic mortgage bonds, Goldman went “long” the CDS and then turned around and went “short” with AIG, effectively taking the risk of the mortgage bonds defaulting and then transferring it to AIG.

But Ms. Tavakoli fails to note that the collapse of the CDO bonds and the collapse of AIG were a deliberate strategy by Goldman. To realize on their bet against the housing market, Goldman needed the CDO bonds to collapse in value, which would cause AIG to be downgraded and lead to AIG posting collateral and Goldman getting paid for their bet. I am confident that Goldman Sachs did not reveal to AIG that they were betting on the housing market collapse.
goldmansachs  bet  betting  aig  bailout  derivatives  CDO  mortage  MBS  toxicassets  prime  non-prime  subprime 
december 2009 by asterisk2a
The Reckoning - Citigroup Saw No Red Flags Even as It Made Bolder Bets - Series -
The bank’s downfall was years in the making and involved many in its hierarchy, particularly Mr. Prince and Robert E. Rubin, an influential director and senior adviser.

Citigroup insiders and analysts say that Mr. Prince and Mr. Rubin played pivotal roles in the bank’s current woes, by drafting and blessing a strategy that involved taking greater trading risks to expand its business and reap higher profits. Mr. Prince and Mr. Rubin both declined to comment for this article.

-- with hindsight -- these people were the architects of this crisis.
Summers and Greenspan and Rubin were part of the Clinton administration, and Bush partly too.
citigroup  MBS  robertrubin  fed  treasury  billclinton  administration  history  housing  bubble  architect  bailout  CDO  housemarket  barackobama  larrysummers  timgeithner  alangreenspan 
december 2009 by asterisk2a

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