Meredith Whitney & Jamie Dimon on principal forbearance in the JPMorgan Chase earnings call PLUS Are JPMC, BofA, Citi taking kickbacks for second liens on short sales?! & HAMP/MHA assisted a whopping 7% of those eligible last year..

Update:  Short Sale Kickback video added

Vodpod videos no longer available.

In other great news, Diana Olick is breaking a HUGE story now on CNBC that the big servicers, JPMorgan Chase, Bank of America and Citi have demanded off-HUD, off ClosingStmt payments to release second liens they hold in short sales (against RESPA law).

Treasury told Diana they were unaware of this and will look into it. Good grief. and they wonder why the servicers dont want to do mods? THEY ARE GETTING KICKBACKS ON SHORT SALES! Plus they get an INCENTIVE PAYMENT to do short sales from Treasury (we the taxpayers) now. My Lord this is unreal.

Again this is the fault of the WH and Treasury.  Treasury actually RAISED the cap on the ‘incentive fees’ the servicers can earn by doing their damn job as servicers today to 35 billion. Banks will do exactly what they can and no more. Sheila Bair at FDIC is the only one moving on principal forbearance, as usual she is ahead of the curve.

Plus the AP isn’t buying the BS spin anymore in its reporting of the much vaunted numbers Treasury is spinning today on their newly permanent mods (which they told the servicers to waive documentation for to achieve, the only thing the trial mods can be disqualified for now is ‘property’ disqualification, nice eh?):

The Obama administration’s mortgage relief plan provided help to only 7 percent of borrowers who signed up last year, another black mark for the struggling program.

Ouch that’ll leave a mark.

About 900,000 borrowers have enrolled in the $75 billion program since it launched in March, the Treasury Department said Friday. But as of last month, only about 66,500 homeowners had received permanent relief. Another 46,000 have been approved and should be finalized soon.The plan aims to make borrowers’ mortgages more affordable by reducing the mortgage interest rate to as low as 2 percent. They receive temporary modifications, which are supposed to become permanent after borrowers make three payments on time and complete necessary paperwork, including proof of income and a letter explaining the reason for their financial hardship.

The Treasury Department is pressing the 102 mortgage companies that are participating in the program to do a better job….

This is a great back and forth. I think we can confirm Treasury is doing exactly JACK SHXT about meaningful mods after hearing this discussion, so much for Obama being tough on those fat cats:

CalculatedRisk:

Here is an exchange between Meredith Whitney and Jamie Dimon on the JPMorgan conference call this morning (ht Brian):

Whitney: [W]e’re reaching a critical point in terms of all of the loan modification efforts and this is an industry question but then how it specifically affects your Company, given the fact that the industry feedback and statistics on the loan modification efforts are not good, so you question what’s the next initiative and the issue of principal forbearance. How much momentum do you think that has, can you comment on what stage we are in terms of obviously the extension ends [soon] with the last slug is over in February, so where do you think we are in terms of the government’s efforts to influence banks to do certain things?

Dimon: Well remember we do modifications of our own and we do the government modifications and I do think they’re kind of new, it was complex, and I think people will get better at it over time, Meredith. We have not thought of a better way to do it than loan by loan, which is does the person want to live there, can they afford to live there, and we really think that the payment, how much you’re paying is more important than principal. Even if you are going to do something on principal, to do it right you have to do it loan by loan and it effectively comes a similar kind of thing. The difficulty is the loan by loan part and we’ve asked the government and I think they tried to streamline a little bit to have programs because there’s too much paperwork involved in it so a lot of the reasons we’re not getting to final modifications half the time we don’t finish the paperwork, so they need the lower payments but they weren’t finishing the paperwork so we’re trying to get better at it, honestly, we rack our brains to figure out if there’s a better way to do it and you can do it more macro than loan by loan but once you start talking about macro, you’re going to get involved in a lot of issues about whether the people live there, whether they have the ability to pay, whether they were honest when they first told people how much their incomes were, so we’re working through it.

Whitney: Okay, do you get a sense that there’s something right behind HAMP, that there’s another solution for the government or is it more your efforts?

Dimon: We’re trying to do this, look, we’re trying to have ideas and they are trying to have ideas but if we had a brilliant one we would be very supportive of doing it. We want to do the right thing for the people.

Whitney: Okay, so a point of clarification on your answer, issue of principal forbearance is not something that people should be overly concerned about with respect to reserves and capital for the bank?

Dimon: No, I think if there’s a macro government force on something like that you could have a fairly significant effect on loan loss reserves and losses, etc.

Whitney: But is that a real, any momentum?

Dimon: Honestly Meredith you probably know as well as we do.

Whitney: I don’t know. I can’t help myself on that one.

Neither can we!

Advertisements

January 15, 2010. Tags: , , , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Jamie Dimon fights back against UK Banker Bonus Tax

Jamie was one of our picks for Treasury Secretary to replace the tax challenged Timmeh (see our March post). Plus since we are shoveling money into,  and making all our policy based on,  protecting the banks, why not have someone with actual private sector banking experience?! Plus Jamie is actually, you know, SUCCESSFUL!

Jamie talks reality to Alistair Darling. JPMChase is about to enter a ginormous HQ on Canary Wharf in London. Maybe the ingenius Banker Bonus Tax that Gordon Brown and Alistair Darling have floated is NOT the best way to keep London as the European center of trading….

Vodpod videos no longer available.

more about “Jamie Dimon fights back against UK Ba…“, posted with vodpod

December 30, 2009. Tags: , , , , , , . Finance, Politics, Wall St. Comments off.

Financial Regulatory Reform: Did Jamie Dimon stop the re-enactment of Glass-Steagall?

Vodpod videos no longer available.

Update: Oh this is  rich, Andy Stern and SEIU are having an ‘end too big to fail’ rally outside Golden Slacks, it sounds like they are actually supporting the Dodd position which the WH is NOT supporting but we know Andy Stern is there (WH) more than anyone else…so are they ‘accidentally’ using the same words as Jamie? Are they helping to keep Golden Slacks’ negative profile so high they don’t bid on taking any of the assets in the FDIC bank seizure sales? (Jamie is against the Dodd too big to fail legislation because he reportedly wants to buy some of those assets and Golden is a competitor…is the WH not really against the Dodd legislation and lying to Jamie? Is Stern just greedy or is this planned? man oh man…)

…a couple hundred of them — led by Service Unions International Union president Andy Stern — plan to gather outside of Goldman Sachs’ Washington offices Monday morning to protest the firm’s mega-bonuses, and demand the end of the “too big to fail” doctrine, according to a press release.

The event will be held outside 101 Constitution Ave. N.W., an office building that’s home to many of the most powerful lobbyists and corporations in town, including Goldman. It’s also where you can find POLITICO’s Capitol Hill bureau (in the basement).

Among their demands, the protesters will say that Goldman bankers should donate their reported $23 billion in bonuses to foreclosure prevention programs….

jamieboxing

wow. We supported Jamie Dimon for Treasury Secretary. Face it Geithner already gave billions to the banks via AIG and CITI, may as well have a TOUGH fox guarding the hen house, and Jamie is the toughest. Paul Volcker who gets wheeled out for the occasional photo-op is clearly being ignored, treated like the ‘crazy Uncle’,  as Charlie Gasparino puts it.  Obama is listening to only one banker it seems, Jamie who has vested interests in keeping things as they are.

Vodpod videos no longer available.

Airtime-Fri. Nov. 13 2009 – 12:50 PM ET – CNBC’s Charlie Gasparino has the details on whether Jamie Dimon is too powerful.

Jamie Dimon-  ‘No Bank Should be Considered Too Big to Fail’

…Dimon, in a Washington Post opinion piece, said the government shouldn’t provide artificial life support to banks that don’t perform. “The term ‘too big to fail’ must be excised from our vocabulary,'” Dimon wrote in Friday’s Post.Yet he said it shouldn’t be the size of the institution that drives the new regulatory policies being considered in Congress but rather their ability to manage risk and provide the best services for customers.

(more…)

November 13, 2009. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Obama Administration, Politics, TARP, Wall St. 1 comment.

Market Mover: Jamie Dimon: Ready to pay back TARP, will NOT participate in PPIP…

UPdate 2: Earnings Release  .pdf courtesy of FT

Update: Earnings analysis – Bloomberg

There’s our Jamie! We have been wondering where his fire went….

jamieboxing1

CNBC:

Chief Executive Jamie Dimon said the bank has the money to repay the $25 billion in taxpayer funds it received from the U.S. government in October…(JP Morgan Chase) reported better-than-expected first-quarter profit as improved investment banking performance offset increased losses from credit cards and other consumer debt, sending its shares up as much as 4.5 percent……

…JPMorgan was forced to take the bailout funds under the government’s Troubled Asset Relief Program…“We could pay it back tomorrow,” Dimon said on a conference call, adding that the bank is waiting for guidance from the government on when it can do so…

Jamie is calling the WH bluff, he says he will pay back TARP right NOW without raising capital, AND he said he will NOT sell assets into PPIP or buy any..he has ‘learned his lesson’ about dealing with the government…

He called the TARP the Scarlet Letter…heh heh heh…

WSJ:

…Still, Mr. Dimon says the firm is going to “await the results of the stress test and guidance from the government and see what happens” regarding a capital raise. He then added that “I don’t see why a company with that kind of capital would have to raise capital…we could raise it, and I, you know, what Goldman did is what Goldman did. It has nothing to do with us.”….

…Regarding the government’s private-public investment partnership program, the firm said it does not have plans to use it. “We’re certainly not going to borrow from the federal government because we’ve learned our lesson about that and — but I do think that a PPIP is properly executed, it could be good for the system because it could give some prices to certain loans and help some companies do things they might not otherwise have been able to do,” he says….

BWAAAAAHAAAAAAHAAA!!! Ball in your court Timmeh…heh heh heh….

April 16, 2009. Tags: , , , , , . Economy, Finance, Obama Administration, Politics, TARP, Taxes, Uncategorized, Wall St. Comments off.

Jamie Dimon Speaks About Bank Summit – CNBC.com

Vodpod videos no longer available.

Airtime:
Fri. Mar. 27 2009 | 10:33 AM ET

JPMorgan CEO Jamie Dimon says President Obama was open to the bankers’c comments and extensively discussed the TARP, with CNBC’s Erin Burnett

more about “Jamie Dimon Speaks About Bank Summit …“, posted with vodpod

March 27, 2009. Tags: , , , , , , , , , , , . Economy, Finance, Housing, Obama Administration, Politics, TARP, Taxes, Uncategorized, Wall St. 1 comment.

Breaking: Jamie Dimon after WH meeting….bonus taxes not ruled out…

oh frak me man, averages were low all day but now trending down farther..DOW down 170 to 7753, S& P down 17 to 815, NAS down 38 to 154

Let’s be perfectly clear (lol), this was TOTUS third or fourth chance to say we do not believe in tearing each other down in America, this bonus tax is wrong and we will rise together, he did not do that, i consider this a failure on his part..

Listen Jamie loves Obama and he was trying to sound positive but Burnett asked did Obama say he is against the House bonus tax? the answer was not yes..and Jamie is always upbeat he was trying…he kept saying they will do what is best for America…

That is bad, now Blankfein talking to Burnett,

listen these, “blue eyed white bankers’ that Lula riffed on were like the Procol Harum song when they came out of two hours with TOTUS,

methinks they got NO reassurances, they got lectures on reforming compensation and lending more it sounds like..will post video as soon as CNBC gets it up..John Mack is silent as a stone…

here is the song to which I refer if anyone missed the joke, LOL

Clip and audio courtesy of Meowbay:

Original 16mm Scopitone conversion, from the ‘summer of love’ 1967 hit record, remixed( sic)and refurbished for FLV YT format. I fixed audio as well. Sound engineer of this famous mono mix was Keith Grant.
Vocals and piano played by Gary Brooker, Matthew Fisher played the Hammond organ, and the lyrics were written by Keith Reid.

You can find them here:
http://procolharum.com/w/w9901.htm

(more…)

March 27, 2009. Tags: , , , , , , , , , , , , , , , , , , , , . Cabinet, CITI, citigroup, Economy, Entertainment, FDIC, Finance, Housing, Music, Obama Administration, Politics, Popular Culture, TARP, Taxes, Uncategorized, Wall St. 1 comment.

Memo to Team Obama: Two Top Bracket Picks for Secretary of Treasury: Sheila Bair and Jamie Dimon..

jamieboxing1

Jamie Dimon, JPMorgan Chase

Stop worrying about March Madness TOTUS, we have NO CONFIDENCE in Timmeh. Give us Jamie or Sheila, ASAP..

Sheila Bair was our top pick for Treasury. We have covered her here

Sheila Bair - FDIC Chief

Sheila Bair - FDIC Chief

Here is current FDIC Chariman Bair today on regulatory practices over non banking financial institutions..

Vodpod videos no longer available.

Jamie Dimon, JPMC CEO, everybody loves him on the street and he is pro Team Obama and has the authority, background, and frankly personality and leadership Timmeh does not

Vodpod videos no longer available.

Both Sheila and Jamie saw the housing meltdown and credit crisis coming and both sounded alarms, Sheila to regulators and Congress, Jamie to financial conferences. They kept their institutions whole through this and have served to help the rest of the financial sector get back on its feet as well as instilling confidence, something the Street needs from the Treasury.

Sheila managed the successful closures of failing banks, daily, especially IndyMac and has been fighting for housing mortgage modifications first. with Paulson and Geithner then with Geithner…October of 08…

From Bair’s prepared testimony (Senate Banking Committee):

The EESA, recently passed by Congress, includes a number of provisions to encourage loan modifications. In particular, EESA addresses the issue of foreclosure mitigation and provides authority that could hold significant promise for future loan modifications. The statute grants authority to the Secretary of the Treasury to use loan guarantees and credit enhancements to facilitate loan modifications to prevent avoidable foreclosures.

. Specifically, the government could establish standards for loan modifications and provide guarantees for loans meeting those standards. By doing so, unaffordable loans could be converted into loans that are sustainable over the long term. The FDIC is working closely and creatively with Treasury to realize the potential benefits of this authority.

Paulson and Geithner blocked FDIC every step of the way on this Congress Critters like Frank and Waters routinely yell at Kashkari to implement Sheila Bair’s plan monthly…we have posted those clips here at MiM, search Kashkari to view..

As you know, a number of steps have already been taken in this direction. But I think it is clear by now that a systematic approach is needed to help us finally get ahead of the curve. The FDIC is working closely and creatively with Treasury on ways to use the recent financial rescue law to create a clear framework and economic incentives for systematically modifying loans. The aim is for loan servicers to offer homeowners more affordable and sustainable mortgages. In sharing ideas with the Treasury, we have drawn from the program that we are using for modifying loans at IndyMac Federal Bank since we took control of that bank in July.

Bair also managed the only successful takeovers with government aid ie Wells Fargo Wachovia when Timmeh was trying to give it to CITI with loss of taxpayer money,(and no doubt to temporarily cover the horror of CITI  losses then, distract, merge, merge, bailout) Sheila got in Timmeh and Paulson’s way bigtime on that and saved tapayers money and refused to back down...IT WAS BEAUTIFULLY DONE!

Jamie took TARP he didn’t want so CITI wouldn’t collapse after he took on Bear Sterns in disarray when Paulson and Timmeh begged him to help save the financial system.(disclaimer MiM has worked at JPMC)…And scooped up WaMu...

March 19, 2009. Tags: , , , , , , , , , , , , , , , . Cabinet, Economy, FDIC, Finance, Housing, Obama Administration, Politics, TARP, Taxes, Uncategorized, Wall St. 5 comments.

Finally some leadership, from.. gasp.. a banker: Jamie Dimon

Vodpod videos no longer available.

Our government hired a treasury secretary and all we got was Timmeh…we need a leader like Jamie, sigh

Airtime: Wed. Mar. 11 2009 | 10:17 AM ET

JPMorgan CEO Jamie Dimon says that this financial crisis is one of the most serious the world has seen and folks looking for a silver bullet solution will be disappointed.

more about “Jamie Dimon “, posted with vodpod

March 12, 2009. Tags: , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, TARP, Taxes, Uncategorized, Wall St. 4 comments.

Next Page »

%d bloggers like this: