asterisk2a + fanniemae   23

BBC News - George Osborne warned by MPs over mortgage guarantee risks
Mr Osborne has said the housing market is still not functioning properly after the 2008 financial crisis, with the number of purchases by first-time buyers down 40% in the past five years. [...] >> haven't they learned anything? subprime and house price bubble created itself by state guarantees introduced by gwbush to push home owner ship. - history doesn't repeat, but rhymes - market prices though information. distortion by brining in more normally ineligible buyers. - Osborne tackling an effect of income stagnation and excessive inflation + zombie consumers and zombie banks. First-time buyers unable to put up deposit. >>
microeconomic  policy  monetary  policy  complexity  asset  bubble  Mark  Carney  monetary  theory  reflation  unintended  consequences  zombie  banks  liquidity-trap  distortion  davidcameron  BOE  subprime  political  folly  policy  folly  QE  2013  Plan  B  short-term  thinking  microeconomics  disequilibrium  economic  history  gwbush  mortgage  fraud  UK  error  equilibrium  fanniemae  unconventional  monetary  policy  ZIRP  austerity  USA  housing  bubble  zombie  consumer  mortgage  market  MervynKing  subsidies  freddiemac  economics  Funding  for  Lending  Scheme  GeorgeOsborne  subsidizing 
april 2013 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
U.S. Said to Be Ready to Sue Banks Over Mortgages -
The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the matter.
The suits stem from subpoenas the finance agency issued to banks a year ago. If the case is not filed Friday, they said, it will come Tuesday, shortly before a deadline expires for the housing agency to file claims.
The suits will argue the banks, which assembled the mortgages and marketed them as securities to investors, failed to perform the due diligence required under securities law and missed evidence that borrowers’ incomes were inflated or falsified. When many borrowers were unable to pay their mortgages, the securities backed by the mortgages quickly lost value.

The FHFA was created in 2008 and assigned to oversee the hemorrhaging government-backed mortgage companies, a process known as conservatorship.
deutschebank  bofa  jpmorgan  goldmansachs  FHFA  subpoena  subprime  2011  misleading  trust  documentation  housing  bubble  housemarket  mortage  fraud  fanniemae  freddiemac  UBS  citigroup  AIG  CountrywideFinancial  merrylllynch  bailout  government  subsidizing  toobigtofail  systemicrisk  banking 
september 2011 by asterisk2a
20 biggest money losers - 1. Freddie Mac (1) - FORTUNE
This Dallas, TX-based electric utility company formally known as TXU Corp. was taken private in 2007 and has since been saddled with debt. The $45 billion leveraged buyout remains the biggest recorded in U.S. history and was one of the last big private equity deals before the financial crisis.
freddiemac  fanniemae  financialcrisis  greatrecession  housing  bubble  USA  LBO  financial  history  BofA 
may 2011 by asterisk2a
Due To "Triple Damages" Under False Claims Act, Deutsche Bank Damages May Total More Than $1 Billion - Full Lawsuit Attached | zero hedge
= What do you expect from Capitalism when you Give them your Finger?! They will take your hand!

While Deutsche Bank and MortgageIT profited from the resale of these Government-insured mortgages,

"In this suit, the United States seeks treble damages and penalties under the False Claims act and compensatory and punitive damages under the common law theories of breach of fiduciary duty, gross negligence, negligence, and indemnification for the insurance claims already paid by HUD for mortgages wrongfully endorsed by MortgageIT. In addition, the United States seeks compensatory and punitive damages."
capitalism  USA  subprime  FHFA  fanniemae  freddiemac  deutschebank  mortage  government  guarantees 
may 2011 by asterisk2a
Fed Lending Benefited Banks Far and Wide -
The Fed data showed that the biggest recipient of taxpayer assistance was, naturally, Citigroup. It was followed closely by Morgan Stanley, Merrill Lynch and Bank of America. Goldman Sachs was also a large beneficiary during the darkest moments of 2008.
Remember that the Wall Street firms were imperiled by their excessive use of borrowed money, which generated huge paydays when the cost of those funds was cheap and the values of the assets they were buying were rising at a steady clip. After the bubble burst and financing evaporated, the firms were able to tap into a lending program created by the Fed in mid-March 2008 after Bear Stearns collapsed. It was called the Primary Dealer Credit Facility.
The program allowed firms to borrow at low interest rates — ranging from 3.25 percent when the program began to 0.5 percent when the last loan was made in May 2009. The firms had to post various securities as collateral when they borrowed, and some of those securities were risky indeed.
fed  benbernanke  balancesheet  interbank  report  financialcrisis  FinancialCrisisInquiryCommission  2008  2009  bearstearns  citigroup  goldmansachs  shadowbanking  fanniemae  freddiemac  aig  lending  overnight 
december 2010 by asterisk2a
Clinton Calls Advice He Got on Derivatives ‘Wrong’ (Update1) -
April 19 (Bloomberg) -- Former President Bill Clinton said his Treasury Secretaries Robert Rubin and Lawrence Summers were wrong in the advice they gave him about regulating derivatives when he was in office.

“I think they were wrong and I think I was wrong to take” their advice, Clinton said in an interview on ABC’s “This Week” program broadcast yesterday.

Their argument was that derivatives didn’t need transparency because they were “expensive and sophisticated and only a handful of people will buy them and they don’t need any extra protection,” Clinton said. “The flaw in that argument was that first of all, sometimes people with a lot of money make stupid decisions and make it without transparency.”

“Even if less than 1 percent of the total investment community is involved in derivative exchanges, so much money was involved that if they went bad, they could affect 100 percent of the investments,” Clinton said.
billclinton  larrysummers  robertrubin  derivatives  warrenbuffet  Lobbying  lobby  lobbyist  Fed  alangreenspan  GSE  mortage  housing  bubble  fanniemae  freddiemac 
april 2010 by asterisk2a
Au Contrarian: Advice to the Financial Crisis Inquiry Commission: How to Question Alan Greenspan on April 7.
Frederick Sheehan is the author of Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession (McGraw-Hill, 2009).
alangreenspan  housing  bubble  GSE  freddiemac  fanniemae  ARM  mortage  usa  fiscal  policy  monetary  Fed  history 
april 2010 by asterisk2a
Economic View - In Financial Regulation, Recognize Our Limitations -
Whatever we do, let’s not be overoptimistic about how successful improved oversight will be. The financial system is diverse and vastly complicated. Government regulators will always be outnumbered and underpaid compared with those whose interest it is to circumvent the regulations. Legislators will often be distracted by other priorities. To believe that the government will ever become a reliable watchdog would be a tragic mistake.

So where does this leave us? We should plan for future financial crises, to occur at some unknown date for some unknown reason, and arm ourselves with better tools to clean up the mess.

Much focus in Washington has been on expanding the government’s authority to step in when a financial institution is near bankruptcy, and to fix the problem before the institution creates a systemic risk.

GSE government-sponsored enterprises
--- reform and regulation have unintended consequences.
--- See Duabi, backgroudn where israli gov was part-owner. lowering risk
GSE  FHA  fanniemae  freddiemac  regulation  reform  greatrecession  housing  bubble  creditcrunch  derivatives  problem  usa  systemicrisk  oversight  banking 
march 2010 by asterisk2a
News Analysis - A Bold U.S. Plan to Help Struggling Homeowners -
“The housing market is the Vietnam War of the American financial system,” said Howard Glaser, a housing consultant. “The federal government is in so deep, they have to keep ramping up to find a way out.”

The latest programs, together with foreclosure assistance efforts already in place, are aimed at helping as many as four million embattled owners keep their houses. But the measures, which will take as long as six months to put into practice, might easily fall victim to some of the conflicting interests that have bedeviled efforts to date. None of these programs have the force of law, and lenders have often seen no good reason to participate.
housemarket  housing  bailout  realestate  greatrecession  usa  2010  barackobama  economics  economy  homeownership  TARP  fanniemae  freddiemac  FHA 
march 2010 by asterisk2a
Google's Eric Schmidt on why bankers deserve little sympathy and Obama does - Telegraph
"The number of people who were hurt by the activities of the financial industry is so large, it is very hard to have a lot of sympathy with that industry given the high-flying nature of its behaviour," he said.
banking  ericschmidt  recession  google  fanniemae  freddiemac  history  greenspan  monetary  policy  politics  economy  economics  moneysupply  financialmarket  causes  cause  creditcrunch  deficit  britian  uk  debt  dollar  pound  usa  inflation 
january 2010 by asterisk2a

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