http://online.wsj.com/article/SB10001424052748704499604575407584128526218.html?mod=WSJ_hpp_MIDDLENexttoWhatsNewsForth
Lets all remember what the FED actually is, and that would be a private institution
The Federal Reserve System (12 Fed Res banks) is a private entity - according to the 1913 Federal Reserve Bank Act - owned by its shareholders (national banks). The Chairman is appointed by the US President,and confirmed by the US Senate to give it the sense of being a federal agency, but it most certainly is not.
So who my friends is foreclosing on the trash called assets that Bear Stearns died owning or owing upon as the case actually now presents itself to be?
The Federal Reserve is, NOT the US Government.
That's a point I feel should be made very clear now that the monthly 30 million dollar payments loom large for the acceptance of the responsibility of Bear's blowout.
The FED owes and is responsible for the repayment of the money, which they borrowed supposedly in good faith,from the American taxpayer.
Those CDS's are going to be an extremely hard swallow since they are now seen for what they are, absolutely worthless.
James Currell is struggling to prevent his Minnesota home from being foreclosed. But his lender isn't a bank. It is the U.S. government.
The Federal Reserve Bank of New York is facing the prospect of foreclosing on a number of properties in the coming months, from homes to commercial buildings, a result of a souring mortgage portfolio it took over when it helped bail out Bear Stearns in 2008.
As it deals with delinquent borrowers, a team of New York Fed officials and outside advisers are trying to avoid having the U.S. government, along with local sheriff's departments, seize commercial properties and homes as it copes with falling real-estate values. In the process, the New York Fed is getting a hard lesson in the challenges of mortgage lending.
It is an unprecedented test for the most powerful of 12 regional branches of the Federal Reserve System. In its 96-year history, the Fed hasn't made or controlled loans to U.S. citizens and businesses outside of banking since the 1930s, when it was done on a much smaller scale. Now, under the watchful eye of Congress, the New York Fed must recoup a $29 billion loan secured by the Bear assets.
"For the Fed to come in and foreclose on properties puts it at some reputational and political risk," said Vincent Reinhart, a former senior Fed staffer who is now an economist
