By Bob Ivry and David Mildenberg
June 25 (Bloomberg) -- Bank of America Corp.'s $3 billion takeover of Countrywide Financial Corp. will be financed by 138 million tax-paying Americans.
Bank of America, led by Chief Executive Officer Kenneth Lewis, can use tax write-offs to pay for Countrywide, the country's biggest mortgage lender, said Robert Willens, a former managing director at Lehman Brothers Holdings Inc. who now runs his own accounting firm. Taxpayers may pick up about $5 billion of Countrywide's losses over 20 years, he said. Countrywide shareholders approved the sale today.
``Ken Lewis got a break,'' Willens said. ``What these losses do is reduce the effective cost of the deal so the headline price isn't really what they're paying. It's entirely possible that the entire equity purchase price could be financed by tax savings.''
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Taxpayers Helping Bank Of America Finance Countrwide Deal: "Bank of America Corp.’s $3 billion takeover of Countrywide Financial Corp. will be financed by 138 million tax-paying Americans."
"Now, the big guns have come out to weigh in. Today, Bloomberg released a detailed story on just how little demand there is for these products and how Fannie and Freddie are actually spending their new-found expanded capacity buying their own mortgage securities. This was supposed to go into the front lines of the housing crisis. This wasn’t part of the deal. It is apparent that Fannie and Freddie and those who approved these new provisions are only concerned with saving their own skins and those that own their bonds such as Bill Gross (who basically called for a self-interested bail-out a few months ago). Pumping $10s of billions into the agency MBS market may also provide false support and marks on agency MBS prices."
Mr Mortgage Update; Ultimate Fannie/Freddie ‘Con’ Job
Posted on June 24th, 2008
For those of you that want to know most everything on the new Fannie Mae/Freddie Mac (agency) Jumbo loans and their new-found expanded purchasing capacity that was supposed to save the real estate market beginning last March, this post is for you. Remember, this was being viewed by many at the time as a license for these two companies to blow themselves up.
This is all a complete failure and sham and has been from the onset in my opinion. Throwing crap against the wall at taxpayer to see if it sticks is not a good game plan. In addition to the new Jumbo programs being virtually unsalable to the general public in this market environment, the agencies are using their expanded capacity to buy their own mortgage securities back. This action backstops themselves and those holding agency paper such as Bill Gross (guess what other “luminary” is now working at the PIMCO bond house now and benefits from this? That’s right — Alan Greenspan).
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Jun. 24th, 2008
Cloture Vote in One Hour - Call Your Senators
Sen. Reid is trying to pass the bill by invoking a cloture vote at 11:00am EST. Call your Senators at 1-866-928-3035 and tell them to vote NO.
BofA, Perhaps Countrywide Wrote Dodd-Shelby Bailout - THIS NEWS MUST GET OUT THERE!
Posted on June 21st, 2008
None of us really believed that Dodd could come up with anything close to this. Just go through transcripts or videos and look at the language and terminology he used just a few months back when referring to the subprime and credit meltdown. Think back to the left-field, irrelevent questions he asked at hearings when he could have made a difference by asking the right questions and getting information out. I have always wondered who was behind it all. Now we know what $70k in contributions, which is what BofA has given Dodd in the past 18-months, will buy. Only Hillary and Obama have received more from BofA.
This $300 billion Dodd-Shelby bailout is an absolute crime. It bails out the banks by limiting their loss to 10%; a joke since many of the problem areas like CA are down as much as 30% already on the median in the past 12-months and the rate of acceleration of the price declines are picking up steam. The subprime crisis is nearly over and now Prime, Alt-A, Pay Option ARMs and Home Equity Lines/Loans are failing. If they get this $300 billion passed, another $1 trillion+ will have to come on its heels for all of the other bailouts
This needs to be fought and/or vetoed or it’s potentially $300 billion of taxpayer money down the toilet. Bernanke already cost global citizens enough by ratcheting down rates the most in the shortest amount of time in history, sparking a massive inflation wave in order to save the very investment banks who started all of this in the first place. Now, unless we all do something and get this story out there, another $300 billion will go up in smoke.
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WASHINGTON (Reuters) - The head of the U.S. House of Representatives Financial Services Committee on Thursday said Congress should examine Countrywide Financial Corp's mortgage loans to Democratic Sens. Christopher Dodd and Kent Conrad.
"My view is that these allegations should be considered by the appropriate bodies, and I understand that the Senate Ethics Committee has already begun to look into the matter," Rep. Barney Frank, a Massachusetts Democrat, said in a statement.
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Congressmen get favored loans from Citibank-- sponsor $400 billion bailout.
By Roland S. Martin
CNN Contributor
updated 1:57 a.m. EDT, Wed June 18, 2008
Commentary: Be honest, we all wish to be VIPs
Roland Martin says we all like preferential treatment if we can get it.
(CNN) -- Be honest: How many of you are really shocked to find out that a bunch of Washington insiders were part of a VIP program coordinated by mortgage giant Countrywide Financial?
The story was first reported by CondeNast's Portfolio magazine, and everyone else has jumped on it since. Based on what we know, folks like former Housing and Urban Development honcho Alphonso Jackson, Sen. Christopher Dodd, D-Connecticut, Sen. Kent Conrad, D-North Dakota, and former Health and Human Services Secretary Donna Shalala got favorable loan terms from the mortgage behemoth.
My first reaction was, "Man, these folks are dumb to think they could get away with it!" But as I was preparing to go on CNN Tuesday, it dawned on me that if most folks were in the same situation, and it wasn't illegal, they would love to have the hookup!
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June 16, 2008
CBO Scoring Shows Dodd-Frank Bill Rescues Banks, Not Borrowers
Congressional Budget Office Estimates 35 percent of Dodd-Frank bailout loans will still default.
Contact: Adam Brandon
Phone: (202) 942-7698
Email: abrandon@freedomworks.org
Washington, D.C. - The Congressional Budget Office (CBO) released its scoring of the Dodd-Frank housing bailing last week. Among its projections: a stunning 35 percent of the loans refinanced through the program will eventually default anyway, and that banks will use the program to offload their "highest-risk loans" to the taxpayer.
The CBO wrote that under Dodd-Frank:
"…the cumulative claims rate (default) for the program would be about 35 percent and that recoveries on defaulted mortgages would be about 60 percent of the outstanding loan amount. Those rates reflect CBO's view that mortgage holders would have an incentive to direct their highest-risk loans to the program, and are based on the expectation that the underwriting standards established for the new program would be less restrictive than those currently in place for FHA’s single-family loan guarantee program, thereby allowing FHA to insure loans with a greater risk of default."
http://www.cbo.gov/ftpdocs/93xx/doc9366/S
FreedomWorks Chairman Dick Armey commented:
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The Senate housing bill approved by a committee this week was already drawing fire from fiscal conservatives and financially responsible homeowners opposed to bailing out housing speculators.
Now it may be time to add privacy advocates to the chorus of voices urging President Bush to veto the bill, which could put taxpayers on the hook for billions of bailout dollars in new taxes or deficit spending.
Buried in the text of the revised legislation, approved by the Senate Banking Committee by a 19-2 vote this week, is a plan to create a new national fingerprint registry. It covers just about everyone involved in the mortgage business, including lenders, "loan originators," and some real estate agents.
May 13, 2008
The mother of all insider trades was pulled off in 1815, when London financier Nathan Rothschild led British investors to believe that the Duke of Wellington had lost to Napoleon at the Battle of Waterloo. In a matter of hours, British government bond prices plummeted. Rothschild, who had advance information, then swiftly bought up the entire market in government bonds, acquiring a dominant holding in England’s debt for pennies on the pound. Over the course of the nineteenth century, N. M. Rothschild would become the biggest bank in the world, and the five brothers would come to control most of the foreign-loan business of Europe. “Let me issue and control a nation’s money,” Rothschild boasted in 1838, “and I care not who writes its laws.”
In the United States a century later, John Pierpont Morgan again used rumor and innuendo to create a panic that would change the course of history. The panic of 1907 was triggered by rumors that two major banks were about to become insolvent. Later evidence pointed to the House of Morgan as the source of the rumors. The public, believing the rumors, proceeded to make them come true by staging a run on the banks. Morgan then nobly stepped in to avert the panic by importing $100 million in gold from his European sources. The public thus became convinced that the country needed a central banking system to stop future panics, overcoming strong congressional opposition to any bill allowing the nation’s money to be issued by a private central bank controlled by Wall Street; and the Federal Reserve Act was passed in 1913. Morgan created the conditions for the Act’s passage, but it was Paul Warburg who pulled it off. An immigrant from Germany, Warburg was a partner of Kuhn, Loeb, the Rothschilds’ main American banking operation since the Civil War. Elisha Garrison, an agent of Brown Brothers bankers, wrote in his 1931 book Roosevelt, Wilson and the Federal Reserve Law that “Paul Warburg is the man who got the Federal Reserve Act together after the Aldrich Plan aroused such nationwide resentment and opposition. The mastermind of both plans was Baron Alfred Rothschild of London.” Morgan, too, is now widely believed to have been Rothschild’s agent in the United States.
Robert Owens, a co-author of the Federal Reserve Act, later testified before Congress that the banking industry had conspired to create a series of financial panics in order to rouse the people to demand “reforms” that served the interests of the financiers. A century later, JPMorgan Chase & Co. (now one of the two largest banks in the United States) may have pulled this ruse off again, again changing the course of history. “Remember Friday March 14, 2008,” wrote Martin Wolf in The Financial Times; “it was the day the dream of global free-market capitalism died.” The Rumors that Sank Bear Stearns
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mparent7777_1- CRIMES AND CORRUPTIONS OF THE NEW WORLD ORDER NEWS
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