http://www.cnsnews.com/news/article/former-bbt-ceo-bankruptcy-us-mathematica
Yup just like Fannie and Freddie and the very same people that wouldn't listen then won't listen now.
Barney Frank should be removed from office. His Freddie and Fannie reality avoidance are costing us out the ass every quarter.
It's very obvious he knows nothing (or doesn't cares at all) about keeping this country financially sound.
I don't believe the bankruptcy is 25 years away either. I'm pretty sure it's walking in the backdoor that the FED opened up for it.
John Allison, who for two decades served as chairman and CEO of BB&T, the nation's 10th largest bank, told CNSNews.com it is a “mathematical certainty” that the United States government will go bankrupt unless it dramatically changes its fiscal direction.
“I was on a committee, a Financial Services Roundtable, for nine years trying to do something about Freddie Mac and Fannie Mae,” said Allison.
“You couldn’t help but see it coming,” he said. “You ran the numbers, particularly the last several years, and it was mathematically certain Freddie and Fannie were going bankrupt.”
“We met with Congress. We met with [House Financial Services Chairman] Barney Frank and [Senate Banking Chairman] Chris Dodd and they absolutely wouldn’t see it,” said Allison.
Showing posts with label Barney Frank. Show all posts
Showing posts with label Barney Frank. Show all posts
Sunday, November 7, 2010
Thursday, October 21, 2010
Barney Frank: The Mortgage fraud enabler
http://www.investors.com/NewsAndAnalysis/Article/550868/201010191811/The-Cynically-Ruthless-Barney-Frank-Enabler-Of-The-Mortgage-Meltdown.htm
Having been a key figure in promoting the risky mortgage lending practices imposed by the federal government on lenders, and on Fannie Mae and Freddie Mac to buy these risky mortgages from the lenders, Frank blamed the resulting collapse of financial markets and the economy on everybody except Barney Frank
When federal regulators uncovered irregularities in Fannie Mae's accounting, and in 2004 issued what Barron's magazine called "a blistering 211-page report," Frank lashed out — not at Fannie Mae, but at the regulators who uncovered Fannie Mae's misdeeds. He said "a leadership change" in the regulatory agency was "overdue."
Having been a key figure in promoting the risky mortgage lending practices imposed by the federal government on lenders, and on Fannie Mae and Freddie Mac to buy these risky mortgages from the lenders, Frank blamed the resulting collapse of financial markets and the economy on everybody except Barney Frank
When federal regulators uncovered irregularities in Fannie Mae's accounting, and in 2004 issued what Barron's magazine called "a blistering 211-page report," Frank lashed out — not at Fannie Mae, but at the regulators who uncovered Fannie Mae's misdeeds. He said "a leadership change" in the regulatory agency was "overdue."
Sunday, October 3, 2010
Editorial:On the Foreclosure Front
http://www.nytimes.com/2010/10/03/opinion/03sun1.html?scp=1&sq=&st=nyt
The spin to soften the crime is in the house kids.
Note how it's the "foreclosure front" rather than "Mortgage-gate". A name it's self that brings up the reminder a crime or rather many Federal crimes have been committed by the Mortgage Industry for the sake of speculation greed.
It always goes back to Wall Street and the buying and selling of financial instruments.
Note to the fix the author thinks should be imposed.
To once again lie the fix upon Barney Franks door.
Because Barney is buddies with those who committed the crimes.
He worked hard to ensure that Fannie and Freddie would comply with their needs.
His suggests of sway are all geared toward the coverup of the crime.
What worries me is he is also ascociated with the letter Senator Al Franken sent to Obama, Holder and the others he sent it to.
If mortgage companies work fast now and get sign a quick fix, you will have left a carbon print allowing them to get off the hook.
They need a miracle and are banking on you needing one to.
But your miracle has actually already happened, make sure you don't give it back.
I heard from over at Karl Denninger's place that Wells Fargo is threatening to sue people if they don't sign for their fix.
Don't sign no matter what they threaten, they don't have a leg to stand on.
The spin to soften the crime is in the house kids.
Note how it's the "foreclosure front" rather than "Mortgage-gate". A name it's self that brings up the reminder a crime or rather many Federal crimes have been committed by the Mortgage Industry for the sake of speculation greed.
It always goes back to Wall Street and the buying and selling of financial instruments.
Note to the fix the author thinks should be imposed.
To once again lie the fix upon Barney Franks door.
Because Barney is buddies with those who committed the crimes.
He worked hard to ensure that Fannie and Freddie would comply with their needs.
His suggests of sway are all geared toward the coverup of the crime.
What worries me is he is also ascociated with the letter Senator Al Franken sent to Obama, Holder and the others he sent it to.
If mortgage companies work fast now and get sign a quick fix, you will have left a carbon print allowing them to get off the hook.
They need a miracle and are banking on you needing one to.
But your miracle has actually already happened, make sure you don't give it back.
I heard from over at Karl Denninger's place that Wells Fargo is threatening to sue people if they don't sign for their fix.
Don't sign no matter what they threaten, they don't have a leg to stand on.
To the extent the suspensions ensure a process that is legal and fair, they are to the good. But delays feed uncertainty, and that could be bad for the economy. Will they result in fewer foreclosures, helping to prop up prices? Or will they create a backlog of foreclosed homes that will push prices down when they come to market?
The best outcome would be for lenders to work harder to avoid foreclosures altogether. Congress and the administration need to give borrowers more tools to fight for modifications of their mortgages that will allow more Americans to stay in their homes.
The Obama antiforeclosure effort, for instance, requires lenders to do an analysis to see whether it is more prudent to foreclose on a troubled loan or to modify it. Lawyers for borrowers say that it is often unclear why a modification is denied. Congress should pass a law giving homeowners the right to challenge any foreclosure if the lender cannot show it has done a proper analysis.
The Dodd-Frank financial reform law could also help. One provision authorizes — but does not require — more government spending to provide legal services for struggling homeowners. That should be a priority.
What sort of loan modifications are available matters a lot. Reductions in principal are generally regarded as the best way to both deliver relief to homeowners and avoid redefault. The administration has altered its programs somewhat to emphasize principal reductions. It must press lenders to follow through.
The central weakness in the administration’s antiforeclosure
Wednesday, December 30, 2009
Bankers Get $4 Trillion Gift From Barney Frank
http://www.bloomberg.com/apps/news?pid=20601039&sid=a48c8UpUMxKQ
No fix to the bankers bust just the continuation of financial life support, because Congress believes they deserve it so much more than you.
-- To close out 2009, I decided to do something I bet no member of Congress has done -- actually read from cover to cover one of the pieces of sweeping legislation bouncing around Capitol Hill.
Hunkering down by the fire, I snuggled up with H.R. 4173, the financial-reform legislation passed earlier this month by the House of Representatives. The Senate has yet to pass its own reform plan. The baby of Financial Services Committee Chairman Barney Frank, the House bill is meant to address everything from too-big-to-fail banks to asleep-at-the-switch credit-ratings companies to the protection of consumers from greedy lenders.
I quickly discovered why members of Congress rarely read legislation like this. At 1,279 pages, the “Wall Street Reform and Consumer Protection Act” is a real slog. And yes, I plowed through all those pages. (Memo to Chairman Frank: “ystem” at line 14, page 258 is missing the first “s”.)
The reading was especially painful since this reform sausage is stuffed with more gristle than meat. At least, that is, if you are a taxpayer hoping the bailout train is coming to a halt.
If you’re a banker, the bill is tastier. While banks opposed the legislation, they should cheer for its passage by the full Congress in the New Year: There are huge giveaways insuring the government will again rescue banks and Wall Street if the need arises.
Nuggets Gleaned
No fix to the bankers bust just the continuation of financial life support, because Congress believes they deserve it so much more than you.
-- To close out 2009, I decided to do something I bet no member of Congress has done -- actually read from cover to cover one of the pieces of sweeping legislation bouncing around Capitol Hill.
Hunkering down by the fire, I snuggled up with H.R. 4173, the financial-reform legislation passed earlier this month by the House of Representatives. The Senate has yet to pass its own reform plan. The baby of Financial Services Committee Chairman Barney Frank, the House bill is meant to address everything from too-big-to-fail banks to asleep-at-the-switch credit-ratings companies to the protection of consumers from greedy lenders.
I quickly discovered why members of Congress rarely read legislation like this. At 1,279 pages, the “Wall Street Reform and Consumer Protection Act” is a real slog. And yes, I plowed through all those pages. (Memo to Chairman Frank: “ystem” at line 14, page 258 is missing the first “s”.)
The reading was especially painful since this reform sausage is stuffed with more gristle than meat. At least, that is, if you are a taxpayer hoping the bailout train is coming to a halt.
If you’re a banker, the bill is tastier. While banks opposed the legislation, they should cheer for its passage by the full Congress in the New Year: There are huge giveaways insuring the government will again rescue banks and Wall Street if the need arises.
Nuggets Gleaned
Wednesday, November 4, 2009
FHA Digging Out After Loans Sour
http://online.wsj.com/article/SB125729000674726513.html#articleTabs%3Dcomments
Here comes another bailout. Do you really think they don't know what they're doing?
Last fall, as the financial system was teetering and the biggest banks were tightening credit, Karen DeForte couldn't find a lender to refinance the two mortgages on her New York home, until she received a phone call from Lend America.
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration, a New Deal-era agency that Washington and Wall Street were relying upon to pick up the slack in the mortgage market as private lenders pulled back. Ms. DeForte fell behind on payments six months later and is seeking a loan modification. Taking the loan was "a stupid mistake," the 46-year-old office manager said.
In late 2007 and early 2008, thousands of borrowers with marginal credit were allowed to refinance via the government-insured FHA program, just as home-price declines began to accelerate. Policy makers were urging the agency to fill the gap left by the exit of private lenders, refinancing subprime borrowers out of loans that threatened to reset to unaffordable payments.
Although the FHA has tightened credit standards, many of the 2007 and early 2008 mortgages are going bad. The agency expects defaults on 24% of all loans insured in 2007, and 20% of those backed in 2008. "The orders from Congress and us were clear: We want to save as many families as we can, recognizing that a lot of loans people were looking to refinance out of should never have been made in the first place," said Brian Montgomery, who served as the agency's commissioner for four years ending in July.
Here comes another bailout. Do you really think they don't know what they're doing?
Last fall, as the financial system was teetering and the biggest banks were tightening credit, Karen DeForte couldn't find a lender to refinance the two mortgages on her New York home, until she received a phone call from Lend America.
Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration, a New Deal-era agency that Washington and Wall Street were relying upon to pick up the slack in the mortgage market as private lenders pulled back. Ms. DeForte fell behind on payments six months later and is seeking a loan modification. Taking the loan was "a stupid mistake," the 46-year-old office manager said.
In late 2007 and early 2008, thousands of borrowers with marginal credit were allowed to refinance via the government-insured FHA program, just as home-price declines began to accelerate. Policy makers were urging the agency to fill the gap left by the exit of private lenders, refinancing subprime borrowers out of loans that threatened to reset to unaffordable payments.
Although the FHA has tightened credit standards, many of the 2007 and early 2008 mortgages are going bad. The agency expects defaults on 24% of all loans insured in 2007, and 20% of those backed in 2008. "The orders from Congress and us were clear: We want to save as many families as we can, recognizing that a lot of loans people were looking to refinance out of should never have been made in the first place," said Brian Montgomery, who served as the agency's commissioner for four years ending in July.
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