Fxcktards On Parade: Fannie & Freddie Announce Mortgage Debt forgiveness for ‘certain’ borrowers 8 years after it would have helped the economy…

housinginyourhands

8 years late and an entire fxckin’ TARP trillion short boys. This will just pxss people off.

FHFA announces Principal Reduction Modification program. Details:

The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac will offer principal reduction to certain seriously delinquent, underwater borrowers who are still struggling in the aftermath of the financial crisis to help them avoid foreclosure and stay in their homes.  The new Principal Reduction Modification program is a one-time offering for borrowers whose loans are owned or guaranteed by Fannie Mae or Freddie Mac and who meet specific eligibility criteria…

FHFA.gov Fact Sheet

• Are owner-occupants.

• Are at least 90 days delinquent as of March 1, 2016.

• Have an unpaid principal balance of $250,000 or less.

• Have a mark-to-market loan-to-value ratio of more than 115% after capitalization.

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April 14, 2016. Tags: , , , , , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Foreclosures, GOP, Housing, Immigration, Labor Department, migrant crisis, Obama Administration, Politics, Popular Culture, TARP, Taxes, Trump, Uncategorized, Unemployment Statistics, Wall St. 1 comment.

The Housing Bubble Always Pops Thrice…

…or something.

We’ve been Through the Looking Glass for so long now I forget how many times we’ve bumped the fake bottom in 07.  Shedlock has the awesome charts, here we are in Housing starts in ’11-

housing starts CR

Someone should have played the Frozen soundtrack for Bernanke and Yellen and we would’ve been on the plateau end of a nice recovery by now. Let it Fxckin’ Go already. Instead we have miles to go to bottom out housing prices.

Importantly, extra requirements were added so well documented citizens have to jump through hoops, and if you have good credit they don’t want you-

…New government rules have mortgage lenders checking, and double-checking, the income status of borrowers. Now more than ever, lenders want to ensure that home buyers have the ability to repay their loan obligations…

Personally I think all that was needed was removing the high risk low underwriting loans backed by tax dollars. Jamie Dimon wants to lend to everyone with a pulse? Great, but not on my back jack. But instead we got extra regs and the undocumented applications got bumped up and okayed increasing the risks of another national bubble and accompanying collapse even more likely, while hampering the middle class ability to function (as does everything Ive seen DC do since 1999):

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April 7, 2016. Tags: , , , , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Foreclosures, Housing, Immigration, Labor Department, migrant crisis, Obama Administration, Politics, Popular Culture, refugee, TARP, Taxes, Wall St. 2 comments.

What do you do for $:Fed reveals partial data on emergency lending facilities, still mum on discount window

Update: Well, it would appear absolutely EVERYONE got a bailout except the middle class. And I do mean everyone.

Zero Hedge breaks down the 35 foreign banks that the Fed bailed out here.

…$1.27 trillion in agency MBS was traded by foreign banks…

led by the $410 billion by German-based Deutsche Bank ..

…the $382 billion by the Switzerland-based Credit Suisse.

Other highlights of the disclosure include that GE among other commercial endeavors got $ from the Fed, and that the Fed has essentially been taking all the polluted assets from everyone with a pulse (again, except for the US middle class consumer/homeowner who has been lectured about ‘moral hazard’ and whose house has been foreclosed upon):

.the Federal Reserve purchased $1.25 trillion in agency MBS from all participating banks.

Goldman Sachs borrowed 84 times from Fed’s dealer facility (PDCF) from Sept. 15 to 11/26/08 for amounts ranging from $100m to $8b

Bank of America borrowed 118 times from the PDCF from Sept 18 2008 to May 2009, in amount ranging from $375 million to $11 billion.

And even CA Pension funds got in on the bail out action, per ZeroHedge:

Looking at the TALF data, we see that the biggest borrower by subscription is Calpers, with a total of about $5.4 billion

Federal Reserve data breakdown and press release here. More from WSJ here

WSJ:

…The data released Wednesday include short-term liquidity moves for financial institutions and companies made as part of the Fed’s traditional role as lender of last resort, liquidity injections directly to borrowers and investors in key credit markets and financial support for Bear Stearns Cos. and American International Group Inc. (See all the data from the Fed)

Fed officials reported details on more than 21,000 transactions from December 2007 to July 2010. The emergency programs caused the size of the Fed’s balance sheet to swell. (See a history of the Fed’s lending)…

December 1, 2010. Tags: , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

The Old Man and the Street -modified Volcker Rule survives FinReg negotiations ~ the Good, the Bad & the Ugly…

Dems did quite a hatchet job in the wee small hours of the morning. Here are the major provisions, they have left most of the implementation to regulators, (the heretofore Eeeevil Federal Reserve gets the Consumer Protection Agency!) and there is a 5 yr window on most changes

WSJ:

(…)VOLCKER RULE: Would curb propriety trading by the largest financial firms, though banks could make de minimus investments in hedge and private-equity funds. Those investments would be limited to 3% or less of a bank’s Tier 1 capital. Banks would be prohibited from bailing out a fund in which they are invested.

Scott Brown R-MA got this 3% for the mutual funds in MA. I cannot wait to hear the JPMChase conference call on earnings in July to see what Jamie Dimon has to say about this. He thought he had killed the Volcker Rule at least twice. The Tall Man always comes back!

DERIVATIVES: Would for the first time extend comprehensive regulation to the over-the-counter derivatives market, including the trading of the products and the companies that sell them. Would require many routine derivatives to be traded on exchanges and routed through clearinghouses. Customized swaps could still be traded over-the-counter, but they would have to be reported to central repositories so regulators could get a broader picture of what’s going on in the market. Would impose new capital, margin, reporting, record-keeping and business conduct rules on firms that deal in derivatives.

So this is the big exciting deal for Chicago! A whole new trading desk to establish, a clearinghouse. (FD-We hold CME shares). Looking to see what the deal is on Warren Buffet’s Berkshire holdings-does he have to put up capital or what? He lobbied HARD against it via Ben Nelson

DERIVATIVES SPIN-OFF: Would require banks to spin off only their riskiest derivatives trading operations into affiliates, in a late-night compromise struck to scale back a controversial provision championed by Sen. Blanche Lincoln (D., Ark.). Banks would be able to retain operations for interest-rate swaps, foreign-exchange swaps, and gold and silver swaps among others. Firms would be required to push trading in agriculture, uncleared commodities, most metals, and energy swaps to their affiliates.

Okay so JPMChase’s silver position is still in the game, they called in like 15 people to surround Blanche last night pushing her to cave, impressed she got anything to go through on this frankly, the pressure was enormous.

CONSUMER AGENCY: Would create a new Consumer Financial Protection Bureau within the Federal Reserve, with rulemaking and some enforcement power over banks and non-banks that offer consumer financial products or services such as credit cards, mortgages and other loans. The new watchdog would have authority to examine and enforce regulations for all mortgage-related businesses; banks and credit unions with assets of more than $10 billion in assets; pay day lenders, check cashers and certain other non-bank financial firms. Auto dealers won a hard-fought exemption from the Bureau’s reach.

Yes Auto Dealers are exempt. Cuz used car salesmen are known far and wide as honest individuals looking out for the consumer -HA HA! And of course it is seated within the Fed.

BANK CAPITAL STANDARDS: Would set new size- and risk-based capital standards, including a prohibition on large bank holding companies treating trust-preferred securities as Tier 1 capital, a key measure of a bank’s strength. Would grandfather trust-preferred securities for banks with less than $15 billion in assets, enabling them to continue treating the securities as Tier 1 capital. Larger banks would have five years to phase-out trust-preferred securities as Tier 1 capital.

Now this provision was raised to $15b to cover one Arkansas bank for Blanche. Hey this needed to be done, Tier 1 should really be Tier 1.

Here is a twofer, they gutted the most important part IMO

MORTGAGES: Would establish new national minimum underwriting standards for home mortgages. Lenders would be required for the first time to ensure that a borrower is able to repay a home loan by verifying the borrower’s income, credit history and job status. Would ban payments to brokers for steering borrowers to high-priced loans.

Well! What a novel idea! VERIFYING INCOME, CREDIT AND EMPLOYMENT before underwriting a mortgage! Why didn’t anyone think of this sooner? Frakkin maroons.

SECURITIZATION: Banks that package loans would, broadly, be required to keep 5% of the credit risk on their balance sheets. Would direct bank regulators to exempt from the rules a class of low-risk mortgages that meet certain minimum standards. Regulators could permit alternative risk-retention arrangements for the commercial mortgage-backed securities market.

They do NOT have to retain 5% of the credit risk on ‘plain vanilla mortgages’. Listen IMO they should ABSOLUTELY HAVE TO RETAIN A MINIMAL EXPOSURE ON EVERY SINGLE MORTGAGE THEY WRITE.  Skin in the game for them as well as the home buyer. Ya dig? But noooooo…

The details are left to the regulators throughout, so the fox is guarding the henhouse again – regulatory capture baby. This TBTF issue is alive and well as we enter the second leg down in housing and UE remains elevated at 10%. Our stress tests did not foresee the continued decline in housing values coupled with extended prolonged 10% UE. These guys need more capital. Treasury wanted authority to do bail outs and it looks like they still have it.:

NEW REGULATORY AUTHORITY: Gives federal regulators new authority to seize and break up large troubled financial firms without taxpayer bailouts in cases where the firm’s collapse could destabilize the financial system. Sets up a liquidation procedure run by the FDIC. Treasury would supply funds to cover the up-front costs of winding down the failed firm, but the government would have to put a “repayment plan” in place. Regulators would recoup any losses incurred from the wind-down afterwards by assessing fees on financial firms with more than $50 billion in assets.

FINANCIAL STABILITY COUNCIL: Would establish a new, 10-member Financial Stability Oversight Council, comprising existing regulators charged with monitoring and addressing system-wide risks to the nation’s financial stability. Among its duties, the council would recommend to the Fed stricter capital, leverage and other rules for large, complex financial firms that are judged to threaten the financial system. In extreme cases, it would have the power to break up financial firms.

We wait for further drill down on details and regulatory implementation timelines. JPMChase seems to have taken the biggest hit IMO, and ha ha ha since Jamie Dimon LOOOOVED him some Obama. Maroons.

June 25, 2010. Tags: , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Housing, Obama Administration, Politics, TARP, Taxes, Wall St. Comments off.

WOW! Must See TV: Congressional JEC panel ripping Geithner apart: Rep Brady (R-TX) first to ask him to resign: MiM starts Obama economic team “shake-up” watch…

Vodpod videos no longer available.

If you look at UE Tim, the US is substantially WORSE off than it was when Obama took office to answer Timmehs whine….In fact someone should tell Tim, taking him at his word that he believes all measures, any measure of economic activity shows things are better since January, the measure of foreclosures and delinquencies has also more than doubled since Obama ‘took charge’:

Update: 12:10pm EST: uh oh. Kudlow says and Steve Liesman confirms, that Geithner is the most fiscally conservative member of Obamas economic advisers.  No wonder we are in a world of hurt! CNBC just ran the Brady Timmeh back n forth so it should come up in a video post shortly. will get it up right away.

Vodpod videos no longer available.

Update: 11:!5am OMG OMG Geithner just threw Seniors unda da bus!! He acknowledges to Brownback that yes the CBO score only works if Congress actually DOES the Medicare cuts and he insists they must and should and will DO THE CUTS. He says the costs have to be reduced, Brownback is saying but why cant we save Medicare? Good grief Geithner is a disaster, you aren’t supposed to tell Seniors they are getting thrown under there Timmeh, Obama will be displeased. Good ad for the GOP though!

WOW!! Excellent!!!! Live feed from CNBC here

I am starting Geithner Fired/Resigns Watch now, there will fer shure be some sort of ‘ Obama economic team shake-up’ to placate the rumblings as they get ready to ask for MORE STIMULUS…They can’t get away with it under Geithner IMO, looks like he is marked as sacrificial lamb, but the Progressives will be no happier with Larry Summers, lol….

By dequalss

Typos abound, getting ready while I do this- TImmeh is red and ranting and blaming Bush and Rep Brady made him acknowledge yes he was head of NY Fed when this collapse happened, and they are cross talking, Brady says the public has lost all confidence in Geithner and he reflects badly on his President, he says at some point Geithner has to take responsibility…ohhh excellent!!

Update: 11:04am EST: Rep. Burgess (R-TX) just said “I don;t think you should quit, you shouldn’t have been hired”. Is that a bus engine I hear idling??? This the Joint Economic Committee and is made up of both Senators and House members, double the fun!! Now Sen Brownback is going off about the health care plan and the Yuan peg…

(FD-MiM is a former AIG employee and shareholder and we have followed Geithner’s handling of the crisis as NY Fed-head closely for two years now, our posts on Geithner, Hank Paulson and AIG are legion. Our previous posts on Geithner and the troubled CITI bailout here and  here and here and here and here and even here ….)

Recall Sens DeMint and Isakson called on Geithner to resign last March. As did several members of the House.

This is in keeping with the report in TheHill this morning:

A Congressional Progressive Caucus (CPC) member said there’s “growing consensus” among liberals that Treasury Secretary Timothy Geithner should step down.

Rep. Peter DeFazio (D-Ore.) said Wednesday that he and other liberal House members are becoming increasingly tired of Obama administration economic policies that they say are too focused on maintaining the stability of Wall Street firms and largely ignore “Main Street.”“A growing consensus in the caucus [believe that Geithner should be removed],” DeFazio said on MSNBC this evening, adding that some lawmakers are “considering questions regarding him and other economic advisers.”

DeFazio said that lawmakers have not yet drafted a plan to remove Geithner. The lawmaker also took aim at top Obama economic adviser Larry Summers for furthering many of the same policies favored by Geithner.

“We need a new economic team,” said DeFazio…..

Hey man, live by the populist pitchforks, die by the populist pitchforks. Hard to put that class war genie back into the bottle and it was a HUGE mistake to embolden the populist rhetoric flame throwers in the House…

This drum beat is getting louder. Dodd thinks Geithner is a drag on his polling, lol, and Simmons, Dodd’s GOP opponent called for Geithner’s resignation already:

A former House Republican running for the Senate in Connecticut is calling for Treasury Secretary Timothy Geithner to be replaced over his handling of AIG’s bailout.

GOP candidate Rob Simmons reacted to a report by Neil Barofsky, the inspector general of the $700 billion bailout program, known as the Troubled Asset Relief Program (TARP).

Barofsky’s report criticized the Federal Reserve Bank of New York, which Geithner led during the bailout, for a series of missteps that Barofsky said ended up requiring the government to provide additional support to AIG.

“The report issued yesterday by the inspector general for the TARP program is a deeply troubling account of Secretary Geithner’s failed management of the AIG bailout in which he cost taxpayers $13 billion in unnecessary new debt,” said Simmons, who appears to be the only candidate or office-holder to call for Geithner’s replacement in response to the report.The federal government committed more than $180 billion to AIG, which was crippled by poor investments and trades in credit default swaps, a financial derivative.

Simmons also attacked his opponent, Senate Banking Committee Chairman Chris Dodd (D-Conn.), in the statement calling on Geithner to be replaced.

“The cozy relationships between the bailed-out financial companies and powerful politicians like Tim Geithner and Chris Dodd are exactly why Americans have lost trust in Washington, D.C., and why we need new leadership with the skills and integrity to clean up their mess and get our economy back on track.”…

More great housing news:

US mortgage delinquency rates and the percentage of loans that entered the foreclosure process jumped in the third quarter, with both reaching record highs, the Mortgage Bankers Association said on Thursday.

The percentage of loans on which foreclosure actions were started rose to 1.42 percent in the third quarter, an all-time high, up from 1.36 percent in the second quarter and 1.07 percent in the third quarter of 2008.

…The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009, up 40 basis points from 9.24 percent in the second quarter and up 265 basis points from 6.99 percent one year ago, the MBA said in its National Delinquency Survey. The delinquency rate broke the record set last quarter. The records are based on MBA data dating back to 1972.

The percentage of loans in the foreclosure process at the end of the third quarter was 4.47 percent, an increase of 17 basis points from 4.30 percent the second quarter of 2009 and 150 basis points from 2.97 percent one year ago.

The combined percentage of loans in foreclosure and at least one payment past due was 14.41 percent on a non-seasonally adjusted basis, the highest ever recorded in the MBA delinquency survey….

November 19, 2009. Tags: , , , , , , , , , , , , , , , , . CITI, citigroup, Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Popular Culture, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

Stress Test Results: A Shot in the Dark….

Lies! Damned Lies and Statistics!

10 minutes to the ballyhooed Stress Tests, the results of which have already been leaked 6 ways to Sunday….

If there is anything you haven’t already heard, CNBC will cover it LIVE, and a Special Edition of Fast Money at 5:00pm EST…

PS AIG reported results MUCH worse than expectations…..

May 7, 2009. Tags: , , , , , , , , , . CITI, citigroup, Economy, Entertainment, Finance, Heavy Metal, Music, Obama Administration, Politics, Popular Culture, Uncategorized, Wall St. 1 comment.

Bank of America’s Converted Capital – CNBC.com

Vodpod videos no longer available.

Great plan. I won’t be diluted right away, I will always have the POTENTIAL to be diluted without warning going forward. Fabulous. Or sell the rest of the stake in CCB China Construction Bank one of our best investments….MAROONS!

Vodpod videos no longer available.

more about “Bank of America’s Converted Capital -…“, posted with vodpod

May 6, 2009. Tags: , , , , . CITI, citigroup, Economy, FDIC, Finance, Obama Administration, Politics, TARP, Uncategorized, Wall St. 1 comment.

Update: BofA refutes FT report, says not raising capital: Market Mover Monday: red-headed stepchildren of Stress Tests try to raise capital and save themselves from Government….goin’ down…

Update: 8:57am EST: CNBC Becky Quick live now talking to Buffett reporting BofA issued statement denying FT report that they are raising 10b in capital…..the fact that the banks are fighting it out with Team TOTUS bean-counters IN THE MEDIA is frightening..yeah I sold in May baby and I would go away could I afford a vacation in this economy, HA!!!

_____________________________________________________________________________________

Here they come, walking down the street, they get the funniest looks from the Treasury agents they meet..

Hey Hey they’re the Zombies, people say their capital’s down…

yada yada…they managed to get everyone but JPMC under their thumb here, they nabbed Wells Fargo and PNC too….

CNBC:

Bank of America is working on plans to raise more than $10 billion in fresh capital, even as it and Citigroup launch last-ditch attempts to convince the U.S. government they do not need to bolster their balance sheets, the Financial Times reported.

Citing people close to the situation, the paper said that Citi, Bank of America and at least two other lenders will on Monday attempt to convince the U.S. Treasury and Federal Reserve that the findings of “stress tests” into their financial health were too pessimistic.

Bank of America, which has had $45 billion in government aid, was found to need well in excess of $10 billion, the Financial Times reported on its website on Sunday, citing sources.

Regional lenders Wells Fargo and PNC Financial were also among the banks that would need to raise more capital unless they could persuade the authorities their findings were wrong, the paper reported, citing people close to the situation.

*Monkees courtesy of OrangeTabbyCat3

May 4, 2009. Tags: , , , , , , , , , , , , . CITI, citigroup, Economy, FDIC, Finance, Music, Obama Administration, Politics, Popular Culture, TARP, Uncategorized, Wall St. 1 comment.

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