Video: Chris Whalen – more on MBS FraudGate, Pension Fund suits, Securities Law and the markets need to restructure these TBTF banks
The risks are high, and Mr Market is asleep, methinks that Uncle Sam has given the TBTF the all clear, leaving taxpayers holding the bag, again.
Courtesy of Market-Ticker:
“This is cancer – this isn’t a sudden crisis that is going to erupt out of the ground.”
“We’re going to wait until well-into this, and then we’re going to do the right thing – which is restructuring.”
“MBS…. are calling their lawyers. Trustees may or may not have the note.”
“There are a lot of investors out there who don’t know what they own… they may own unsecured loans….. trustees that were supposed to do things under state law (and didn’t)… even Fannie and Freddie have issues with this.”
“…. this is not minutia; this is the letter of the law.”
“The dealer has to deliver to the trustee the notes (under NY State Law)”
WH announces $2B for bridge loans for unemployed homeowners and $1B for HUD for same-HEMAP…
Update 4: Yves at NakedCapitalism sums up this latest plan beautifully:
…How is this supposed to help borrowers? Seriously. This is the government equivalent of a subprime teaser loan. But this is even worse. First, teaser borrowers paid at least a smidge of interest (even 2% is more than zero), which placed a teeny constraint on their ability to take on debt. Second, housing was at least appearing to increase, so it wasn’t entirely nuts (merely sorta nuts) to look to the principal value of the house as security and reason to extend yourself financially….
…This measure, as modest as it is, therefore looks like yet another backdoor transfer to banks, and a way to try to prop up housing prices (note the “stabilize housing markets” comment) and secondarily, funnel some cash to communities (note the loans are intended to be used for property tax payments too)….
Update: HotAir: Senate votes to strip ACORN of Federal funding!!! ACORN: No sleep til Brooklyn!
Update 7:30 EST: Here is Senator Johanns speaking on the Amendment before the vote:
Courtesy of SenJohanns:
Senator Mike Johanns (R-NE) introduces an amendment on September 14, 2009, that would block money from the transportation and housing appropriations bill from directly or indirectly funding ACORN.
Breaking update from Ed Morrisey! HotAir (go read the whole thing for how the vote shifted on the floor):
Senator Mike Johanns (R-NE) introduced an amendment to the HUD and Transportation appropriation bill to strip ACORN of all federal funding. A week ago, Johanns wouldn’t have gotten the amendment to the floor. Today, however, after three straight days of BigGovernment.com’s video exposés of ACORN offices in Washington DC, New York City, and Baltimore offering assistance to pimping, tax evasion, and trafficking in underage Salvadorean girls, Johanns not only got his vote — but he got an impressive bipartisan showing. The Senate passed the Johanns amendment 83-7…
A shout out to our peeps in Bed-Sty and Red Hook!
Courtesy of BigGovernment, Part 3 in the Ongoing Saga of ACORN, Pimps, Prostitutes, underage sex trade and housing loans
Moderate in the Middle 