Update: Market Roundup: House vote on Financial Regulatory Reform Bill today, GE gets an exemption, Geithner wants to exempt TARP 2 from restrictions and Geithner pushing BofA and CITI to payback TARP over objections of FDIC…

Update 2: It’s up on the newslinkys now:

Conyers/Turner/Lofgren/Marshall/Waters/Cohen/Miller (NC)/ Delahunt/Nadler/Fudge Amendment #201 (Defeated 241-188)Revised: Would allow bankruptcy courts to extend repayment periods, reduce excessive interest rates and fees, and adjust the principal balance of the mortgage to a home’s fair market value as necessary to prevent foreclosure and revised to allow the VA, FHA, and RHS to take steps to facilitate mortgage modifications.  The amendment is substantively identical to title I, subtitle A and sections 121-123 of subtitle B of H.R. 1106 Helping Families Save Their Homes Act of 2009), which passed the House on March 5, 2009. (See related story)

Update: 1:25 pm EST: The DEMOCRATICALLY CONTROLLED HOUSE has just rejected the Amendment to the Financial Regulatory Reform Bill that would have allowed bankruptcy judges to ‘cramdown’ mortgages. This after we learned yesterday that of a pool of 3 MILLION delinquent homeowners (which is now up to 4.8 million BTW), Treasury/HUD have managed to get the banks to permanently modify 31,000, yes that’s thousand.  After that EPIC FAIL I became a SUPPORTER of this Amendment. It is not the BANKS holding these loans anymore peeps!! It is FAN FRED FHA!!!!

That being the case as taxpayers we will take a hit when those loans go to short sale and some investor makes a profit, WE will be bailing out FAN FRED (again) and FHA. Why wouldn’t we just buy the damned bad loans oh yeah that was what Paulson SAID he was gonna do with TARP.

Now WE the taxpayer guaranteeing FAN FRED FHA OWN these loans ALREADY. Why the hell arent we writing them down and taking the hit ONCE. Instead the homeowners get kicked out, it gets sold for less then the mortgage and we STILL give FAN FRED FHA the bailout for the loss. And now some investor with FREE money from the FED has the house and will dump it on the market in another bubble like the one they made that started this mess.

And Tim wants TARP II. But no cramdown. And they think they are ‘progressive’, they say they are Democrats.  Obama’s Treasury didn;t want it, therefore it didnt happen, This is Unbelievable.

This despite that IDENTICAL legislation had already PASSED the House once before and died in the Senate. Could not be more clear they are leaving the homeowners out to dry.

And everyone who lives near or is family with or sells goods to those homeowners. We are ALL gonna pay when people keep walking on these loans and getting foreclosed on, we will have ENDLESS bailouts of FAN FRED FHA as those homes are sold and resold in new bubbles and everyone makes a bundle but the taxpers and families who lose their homes. Utterly disgusting.

Vodpod videos no longer available.

Should BofA and CITI be allowed to leave TARP? Will they be back like a bad penny?

Look for the cramdown/judicial mod amendment action also. Since Treasury and the banks managed only 31,000 mods out of 3 MILLION loans I now support it, frak ’em.

Politico:

FINAL RULE ON THE REFORM BILL, including a summary of all 36 amendments made in order by the Rules Committee. Some got votes Thursday night, others will come today. Final passage is expected sometime around noon.

BILL HAS LOOPHOLES, report WSJ’s Damian Paletta and David Enrich, “Buried in a 239-page amendment to the U.S. House of Representatives’ financial regulatory overhaul is a provision that appears to do just one thing: exempts financial-services company USAA from some of the bill’s tougher provisions. The carve-out is one of a number of exceptions that allow companies to avoid fresh scrutiny envisioned by the White House, which is aiming to overhaul the nation’s financial-regulatory apparatus. The beneficiaries run from corporations such as General Electric Co. and Pitney Bowes Inc. to USAA, which caters to members of the military and their families, to so-called fraternal benefit societies.”

Geithner has learned NOTHING from the disasterous capital infusions into the big banks in TARP ROUND ONE. Now in Son of TARP he wants to EXEMPT everyone from the Feinberg pay czar that they installed to curb populist anger that THEY stoked in the first place!!! Which I agree was a stupid stupid limitation but CONGRESS did it, they will do it AGAIN. He cannot protect them. Who believes Congress will not arbitrarily add requirements later?

AND still no word on what the hexx they plan to do about HOUSING which was the FIRST thing named in TARP legislation…purpose was to address foreclosures and stabilize markets.:

WAPO REPORTS POSSIBLE SMALL BIZ TARP — by David Cho, A1, 2 column lead: “The Obama administration plans to channel money from the government’s massive financial bailout program to small businesses as part of an effort to limit the political and economic damage of high unemployment. One plan under consideration involves spinning off a new entity from [TARP] that would give banks access to federal funds without restrictions, including limits on executive pay, as long as the money was used to support loans to small businesses. … As an alternative, officials are prepared to ask Congress to modify TARP itself, easing the pay limits and other restrictions that would be imposed on small-business lenders taking the money, the sources said … Since the summer, the administration has been facing an uncomfortable dynamic in the economy. The ranks of the jobless have been growing, while big financial firms that got taxpayer bailout money have been thriving. In response, officials have been trying to recast TARP as aid for Main Street rather than Wall Street.”

GEITHNER SAYS SMALL BANKS WORRY OF TARP TAINT, reports FT’s Tom Braithwaite: “Tim Geithner, US Treasury secretary, on Thursday advocated exempting small businesses from restrictions attached to the bank bail-out program that Goldman Sachs , Citigroup and other large banks have been anxious to escape. In testimony to the Congressional Oversight Panel, Mr. Geithner said small banks were worried about being ‘stigmatized’ for asking for money from [TARP] and that this was exacerbating a credit crunch for their small business customers. They don’t want to come to do business with the government. ‘They think it’s a sign of weakness, not strength.’”

Geithner also pushed BofA and is pushing CITI paybacks of TARP, IMO to justify TARP 2: The Revenge of TARP!!!, over the objections of the FDIC. As originally reported by Andrew Ross Sorkin in the NYT. In the TARP C.O.P. questioning yesterday Geithner did not deny this. This morning a guest on CNBC noted this is a serious problem. We will post the video. FD: We are BofA/Merrill shareholders and have discussed this ad nauseum here on the site.

December 11, 2009. Tags: , , , , , , , , , , , , , , , , . Economy, FDIC, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. Comments off.

Housing: Bankruptcy Cramdown/Judicial Modification Amendment in Financial Regulation bill; Frank okays CBC Amendment for 3 billion in loans to unemployed homeowners, also allows HUD to fund states’ HEMAP programs…

Lots of action taking place ahead of the House vote on Financial Regulatory Reform. Much of it focused on housing.

MarketWatch has a rundown, they call this a CBC idea, but Barney floated it himself months ago:

Responding to concerns from the Congressional Black Caucus, House Financial Services Committee Chairman Barney Frank has attached a provision to broad bank regulation reform legislation that would allocate $3 billion in bank bailout funds to help unemployed homeowners stay in their homes. The provision is expected to be included in major bank reform legislation, which is set for three days of consideration by the House of Representatives beginning Wednesday evening.

…The House Rules Committee is scheduled to debate and decide which amendments will be permitted to be considered on the House floor at meetings Tuesday and Wednesday. Read amendments here.

...Frank agreed to allocate $3 billion in additional funds from the $700 billion Troubled Asset Relief Program for emergency mortgage relief for unemployed homeowners. Already $50 billion in TARP funds is being used for an Obama administration mortgage modification program.The measure would allocate the funds to the Department of Housing and Urban Affairs, which would use the funds to give out fixed-rate, low-interest loans to unemployed people facing foreclosure. However, the aggragate amount of assistance for any homeowner is prohibited from exceeding $50,000.

The program also allows the HUD secretary to allow funds to be administered by a state with a similar program. For example, HUD may have authority to provide TARP funds to the Pennsylvania-based Homeowners’ Emergency Mortgage Assistance Program, or HEMAP, which gives government bridge mortgage loans to people who have recently lost their jobs. Under HEMAP, loans do not accrue interest until the participant’s income is restored.

Frank also attached a provision that would provide an additional $1 billion in TARP funds for an existing neighborhood stabilization program…

Go read the whole piece for more on the bankruptcy cramdown amendment, which may face better odds in the Senate this time around given the failure of the HAMP program and the imminent second leg down in housing.

December 8, 2009. Tags: , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Unemployment Statistics, Wall St. 1 comment.

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