http://www.businessweek.com/investor/content/feb2010/pi20100226_589467.htm
This was written in Febuary of this year.
Really how was the FED's purchase of 1.2 trillion dollars of Mortgage backed securities actually going to help this country out?
The answer: It wasn't but it did cover up the exposure of the FRAUD that the banks comitted.
Collusion.
The Federal Reserve is a private entity, not a government entity and should and can be seen as such, in light of the bank cover up.
The Treasury is also chin deep in regards to it's collusion with the investment banks as well as the FED.
America's housing market implosion was the epicenter of the Great Recession. It's hardly surprising that the federal government directed enormous resources at the market. Besides bailing out vulnerable banks, the federal government nationalized mortgage behemoths Fannie Mae and Freddie Mac, opened the lending spigot at the Federal Housing Administration (FHA), passed a first-time home buyers' tax credit, and established a mortgage modification program for troubled homeowners. The Federal Reserve embarked on a $1.25 trillion purchase of mortgage-backed securities in an effort to engineer lower mortgage rates.
Showing posts with label Treasury. Show all posts
Showing posts with label Treasury. Show all posts
Wednesday, October 13, 2010
Thursday, May 6, 2010
Freddie Mac asks U.S. for $10 billion as losses pile up
http://www.washingtonpost.com/wp-dyn/content/article/2010/05/05/AR2010050505227.html?wprss=rss_business
10 billion more and that's just right now after the FED unloads the rest of the crap it's holding on to Freddie, that 10 billion is going to look like CHUMP CHANGE.
Audit the FED NOW,
Ask yourself does it really make sense for the White House or the Senate to be using every trick in the book to make sure the FED remains unaudited?
No it doesn't, the question is WHY?
What's on the FED's books that they don't want the public to see?
Freddie Mac, the bailed-out mortgage-finance giant, reported Wednesday that it continues to lose money and needs an additional $10.6 billion in assistance from U.S. taxpayers.
The most recent earnings report follows three straight quarters in which the McLean-based company did not need infusions from the Treasury. Still, the firm is struggling to recover from the mortgage-market meltdown; it reported a net loss of $6.7 billion in the first quarter of 2010, compared with a loss of $9.9 billion a year ago.
Freddie Mac is turning to the Treasury again mostly because of a change in accounting. Revised rules that took effect this year require companies such as Freddie to move all mortgages they guarantee -- but don't own -- onto their books. This shift alone caused the company's equity to drop by $11.7 billion, helping to plunge its net worth into the red.
Under the terms of Freddie's September 2008 bailout, taxpayers make up the shortfall in any quarter when the firm's net worth is negative. The accounting change, along with the firm's loss and a $1.3 billion dividend payment to the Treasury, pushed Freddie's net worth to a negative $10.5 billion, down from a positive $4.4 billion last year.
10 billion more and that's just right now after the FED unloads the rest of the crap it's holding on to Freddie, that 10 billion is going to look like CHUMP CHANGE.
Audit the FED NOW,
Ask yourself does it really make sense for the White House or the Senate to be using every trick in the book to make sure the FED remains unaudited?
No it doesn't, the question is WHY?
What's on the FED's books that they don't want the public to see?
Freddie Mac, the bailed-out mortgage-finance giant, reported Wednesday that it continues to lose money and needs an additional $10.6 billion in assistance from U.S. taxpayers.
The most recent earnings report follows three straight quarters in which the McLean-based company did not need infusions from the Treasury. Still, the firm is struggling to recover from the mortgage-market meltdown; it reported a net loss of $6.7 billion in the first quarter of 2010, compared with a loss of $9.9 billion a year ago.
Freddie Mac is turning to the Treasury again mostly because of a change in accounting. Revised rules that took effect this year require companies such as Freddie to move all mortgages they guarantee -- but don't own -- onto their books. This shift alone caused the company's equity to drop by $11.7 billion, helping to plunge its net worth into the red.
Under the terms of Freddie's September 2008 bailout, taxpayers make up the shortfall in any quarter when the firm's net worth is negative. The accounting change, along with the firm's loss and a $1.3 billion dividend payment to the Treasury, pushed Freddie's net worth to a negative $10.5 billion, down from a positive $4.4 billion last year.
Monday, January 11, 2010
AIG, autos offset Treasury bank bailout profits
http://www.reuters.com/article/idUSTRE60A4XU20100111
OK I understand the hit from AIG and the auto makers, but the 27 billion on the home affordable modification program has me stumped. We all know that very few home loans were ever actually modifidied, so it couldn't possibly from that, unless we were paying people to do actually nothing, so the only other thing that it could possibly pertain to is the $8000.00 tax credit for first time buyers.
- U.S. taxpayer profits from bank bailout investments are being offset by estimated losses from American International Group and automakers and mortgage payment cuts for struggling homeowners, a U.S. Treasury report showed on Monday.
The Treasury estimated net losses on its $700 billion bailout program at $68.5 billion for the fiscal year ended September 30, 2009.
The December report for the Troubled Asset Relief Program, or TARP, showed that the fiscal 2009 net loss included estimated losses of $30.4 billion for AIG and $30.4 billion for automakers, with $27.1 billion in losses from the Home Affordable Modification Program.
OK I understand the hit from AIG and the auto makers, but the 27 billion on the home affordable modification program has me stumped. We all know that very few home loans were ever actually modifidied, so it couldn't possibly from that, unless we were paying people to do actually nothing, so the only other thing that it could possibly pertain to is the $8000.00 tax credit for first time buyers.
- U.S. taxpayer profits from bank bailout investments are being offset by estimated losses from American International Group and automakers and mortgage payment cuts for struggling homeowners, a U.S. Treasury report showed on Monday.
The Treasury estimated net losses on its $700 billion bailout program at $68.5 billion for the fiscal year ended September 30, 2009.
The December report for the Troubled Asset Relief Program, or TARP, showed that the fiscal 2009 net loss included estimated losses of $30.4 billion for AIG and $30.4 billion for automakers, with $27.1 billion in losses from the Home Affordable Modification Program.
Monday, January 4, 2010
HAFA-foreclosure warning dead ahead
http://market-ticker.denninger.net/archives/1811-HAFA-Foreclosure-Warning-Dead-Ahead!.html
This is how your government works for you......By sticking a knife in your back.
Under the Radar - a bit - came this ditty at the end of November. Coupled with the "unlimited" Fannie and Freddie "credit line", this may presage a veritable collapse in house prices this coming spring and summer - along with a massive "dump" of inventory.
"HAMP", the Treasury's program to "prevent" foreclosures, did not originally appear to have a "stick." Well, here's the stick folks - for those who cannot qualify for a modification, or who "blow it" while on a trial program and simply don't get a permanent change servicers are in fact required to offer short sale or "deed in lieu" alternatives when they make sense.
Got that? Servicers participating in HAMP must follow the guidelines set forth in this Supplemental Directive.
No choices here folks - if you're part of HAMP, you are required to offer expedited and unified procedures for short sales and, optionally, "deed in lieu" programs.
This goes into effect in April, although servicers can start offering these programs earlier.
Come the spring selling season you're going to see the inventory of homes that were "HAMPd" and failed for whatever reason hit the market.
This is not a trivial number of houses - there are close to 750,000 homes currently under trial modifications, and only a tiny number of them - something like 30,000 - have converted to permanent payment changes.
This is how your government works for you......By sticking a knife in your back.
Under the Radar - a bit - came this ditty at the end of November. Coupled with the "unlimited" Fannie and Freddie "credit line", this may presage a veritable collapse in house prices this coming spring and summer - along with a massive "dump" of inventory.
"HAMP", the Treasury's program to "prevent" foreclosures, did not originally appear to have a "stick." Well, here's the stick folks - for those who cannot qualify for a modification, or who "blow it" while on a trial program and simply don't get a permanent change servicers are in fact required to offer short sale or "deed in lieu" alternatives when they make sense.
Got that? Servicers participating in HAMP must follow the guidelines set forth in this Supplemental Directive.
No choices here folks - if you're part of HAMP, you are required to offer expedited and unified procedures for short sales and, optionally, "deed in lieu" programs.
This goes into effect in April, although servicers can start offering these programs earlier.
Come the spring selling season you're going to see the inventory of homes that were "HAMPd" and failed for whatever reason hit the market.
This is not a trivial number of houses - there are close to 750,000 homes currently under trial modifications, and only a tiny number of them - something like 30,000 - have converted to permanent payment changes.
Friday, December 25, 2009
U.S. Move to Cover Fannie, Freddie Losses Stirs Controversy
http://online.wsj.com/article/SB126168307200704747.html?mod=rss_Today's_Most_Popular
How many more miles can they get off of the excuse that it's for the continued strength and stability of one of the subcategories of the financial recovery?
How much money can they print and who's left to buy the debt so that they can do it?
strong><"necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. /strong
The Obama administration's decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.
The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.
Unlimited access to bailout funds through 2012 was "necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.
"The timing of this executive order giving Fannie and Freddie a blank check is no coincidence," said Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee. He said the Christmas Eve announcement was designed "to prevent the general public from taking note."
Treasury officials couldn't be reached for comment Friday.
How many more miles can they get off of the excuse that it's for the continued strength and stability of one of the subcategories of the financial recovery?
How much money can they print and who's left to buy the debt so that they can do it?
strong><"necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. /strong
The Obama administration's decision to cover an unlimited amount of losses at the mortgage-finance giants Fannie Mae and Freddie Mac over the next three years stirred controversy over the holiday.
The Treasury announced Thursday it was removing the caps that limited the amount of available capital to the companies to $200 billion each.
Unlimited access to bailout funds through 2012 was "necessary for preserving the continued strength and stability of the mortgage market," the Treasury said. Fannie and Freddie purchase or guarantee most U.S. home mortgages and have run up huge losses stemming from the worst wave of defaults since the 1930s.
"The timing of this executive order giving Fannie and Freddie a blank check is no coincidence," said Rep. Spencer Bachus of Alabama, the ranking Republican on the House Financial Services Committee. He said the Christmas Eve announcement was designed "to prevent the general public from taking note."
Treasury officials couldn't be reached for comment Friday.
Friday, October 23, 2009
Secret Service strained as leaders face more threats
http://www.boston.com/news/nation/wa...ats/?page=full
The unprecedented number of death threats against President Obama, a rise in racist hate groups, and a new wave of antigovernment fervor threaten to overwhelm the US Secret Service, according to government officials and reports, raising new questions about the 144-year-old agency’s overall mission.
Discuss
COMMENTS (167)
The Secret Service is tracking a far broader range of possible threats to the nation’s leaders, the officials said, even as it also investigates financial crimes such as counterfeiting as part of its original mandate.
The new demands are leading some officials, both inside and outside the agency, to raise the possibility of the service curtailing or dropping its role in fighting financial crime to focus more on protecting leaders and their families from assassination attempts and thwarting terrorist plots aimed at high-profile events.
“If there were an evaluation of the service’s two missions, it might be determined that it is ineffective . . . to conduct its protection mission and investigate financial crimes,’’ according to a inter nal report issued in August by the Congressional Research Service.
The report, which was provided to the Globe, said such a review should look at how money and staff are allocated, and whether some of the agency’s functions and workers should be transferred to the Treasury Department
The unprecedented number of death threats against President Obama, a rise in racist hate groups, and a new wave of antigovernment fervor threaten to overwhelm the US Secret Service, according to government officials and reports, raising new questions about the 144-year-old agency’s overall mission.
Discuss
COMMENTS (167)
The Secret Service is tracking a far broader range of possible threats to the nation’s leaders, the officials said, even as it also investigates financial crimes such as counterfeiting as part of its original mandate.
The new demands are leading some officials, both inside and outside the agency, to raise the possibility of the service curtailing or dropping its role in fighting financial crime to focus more on protecting leaders and their families from assassination attempts and thwarting terrorist plots aimed at high-profile events.
“If there were an evaluation of the service’s two missions, it might be determined that it is ineffective . . . to conduct its protection mission and investigate financial crimes,’’ according to a inter nal report issued in August by the Congressional Research Service.
The report, which was provided to the Globe, said such a review should look at how money and staff are allocated, and whether some of the agency’s functions and workers should be transferred to the Treasury Department
Friday, May 8, 2009
Former S&L Regulator: Absolutely A Banking Bailout Coverup
http://www.blacklistednews.com/news-4160-0-13-13--.html
This Bill Moyers interview is going viral so fast, I can’t even keep up with it. And for a very good reason - former S&L regulator Bill Black explains exactly why the current banking bailout is a mistake.
Hat-tip to Crooks & Liars for content!
Complete transcript
Full interview video is here
There’s so much information, you simply have to read or watch the entire thing. Some snippets:
BILL MOYERS: Yeah. Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover-up to keep us from knowing what went wrong?
WILLIAM K. BLACK: Absolutely.
BILL MOYERS: You are.
WILLIAM K. BLACK: Absolutely, because they are scared to death. All right? They’re scared to death of a collapse. They’re afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we’ll run screaming to the exits. And we won’t rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it’s foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. But I think they are sincerely just panicked about, “We just can’t let the big banks fail.” That’s wrong.
BILL MOYERS: But what might happen, at this point, if in fact they keep from us the true health of the banks?
WILLIAM K. BLACK: Well, then the banks will, as they did in Japan, either stay enormously weak, or Treasury will be forced to increasingly absurd giveaways of taxpayer money. We’ve seen how horrific AIG — and remember, they kept secrets from everyone.
BILL MOYERS: A.I.G. did?
WILLIAM K. BLACK: What we’re doing with — no, Treasury and both administrations. The Bush administration and now the Obama administration kept secret from us what was being done with AIG. AIG was being used secretly to bail out favored banks like UBS and like Goldman Sachs. Secretary Paulson’s firm, that he had come from being CEO. It got the largest amount of money. $12.9 billion. And they didn’t want us to know that. And it was only Congressional pressure, and not Congressional pressure, by the way, on Geithner, but Congressional pressure on AIG.
Where Congress said, “We will not give you a single penny more unless we know who received the money.” And, you know, when he was Treasury Secretary, Paulson created a recommendation group to tell Treasury what they ought to do with AIG. And he put Goldman Sachs on it.
This Bill Moyers interview is going viral so fast, I can’t even keep up with it. And for a very good reason - former S&L regulator Bill Black explains exactly why the current banking bailout is a mistake.
Hat-tip to Crooks & Liars for content!
Complete transcript
Full interview video is here
There’s so much information, you simply have to read or watch the entire thing. Some snippets:
BILL MOYERS: Yeah. Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover-up to keep us from knowing what went wrong?
WILLIAM K. BLACK: Absolutely.
BILL MOYERS: You are.
WILLIAM K. BLACK: Absolutely, because they are scared to death. All right? They’re scared to death of a collapse. They’re afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we’ll run screaming to the exits. And we won’t rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it’s foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. But I think they are sincerely just panicked about, “We just can’t let the big banks fail.” That’s wrong.
BILL MOYERS: But what might happen, at this point, if in fact they keep from us the true health of the banks?
WILLIAM K. BLACK: Well, then the banks will, as they did in Japan, either stay enormously weak, or Treasury will be forced to increasingly absurd giveaways of taxpayer money. We’ve seen how horrific AIG — and remember, they kept secrets from everyone.
BILL MOYERS: A.I.G. did?
WILLIAM K. BLACK: What we’re doing with — no, Treasury and both administrations. The Bush administration and now the Obama administration kept secret from us what was being done with AIG. AIG was being used secretly to bail out favored banks like UBS and like Goldman Sachs. Secretary Paulson’s firm, that he had come from being CEO. It got the largest amount of money. $12.9 billion. And they didn’t want us to know that. And it was only Congressional pressure, and not Congressional pressure, by the way, on Geithner, but Congressional pressure on AIG.
Where Congress said, “We will not give you a single penny more unless we know who received the money.” And, you know, when he was Treasury Secretary, Paulson created a recommendation group to tell Treasury what they ought to do with AIG. And he put Goldman Sachs on it.
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