Is it only me or is this a weird report? Both of the protagonists are majority owned by the US taxpayer, and yet they settle debts in order to hide the disclosure of the true amounts of bad loans which Ally (the bank formerly known as GMAC) stuffed into RMBS’ which have been sold to Fannie Mae. Is this just a way for the US government and its hedge fund partners in Ally to clean up the books and lower risk so as to polish up the IPO? As a result neither Ally nor Fannie Mae need to make adjustments for the crap mortgages on their balance sheets … at this time. . . . → Read More: Robbing Peter to pay Paul – Ally pays Fannie for stuffing them with bad loans
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Hat tip to Naked Capitalism which pointed me to Credit Writedowns for this: From the WikiLeaks cables as published in the Guardian today regarding a meeting with the US Ambassador to the United Kingdom and the Bank of England Governor Mervyn King on 17 Mar 2008: Systemic Insolvency Is Now The Problem ————————————– 2. (C/NF) King said that liquidity is necessary but not . . . → Read More: Systemic insolvency is the problem – as said Mervyn King in 2008 The Connecticut Watchdog.com posted another doozy of a story on the total dysfunction of BofA. In an article ‘Bank Of America’s Christmas present: Foreclose Even Though Not A Payment Missed George Gombassy reported: Bank of America notified Shock Baitch and his wife that foreclosure action will start today – Christmas eve – unless the couple agrees to put their home up for a forced sale. Another unit of Bank of America erroneously reported to credit agencies that the family was seeking a loan modification, ruining their credit rating and as the result putting their mortgage into default. In a nutshell, the other creditors will not reinstate the old credit limits because they use the current credit reports, BofA will not help because they use the current credit reports, and monthly minimum payments have more than doubled because of the BofA’s errors. . . . → Read More: Bank of America’s Christmas Present Judges in Florida have been particularly notorious, and new rulings show at least some members of the Florida judiciary seem more committed to speeding foreclosures through to completion than anything else. For example, Florida’s infamous “rocket dockets,” in which a foreclosure case can take mere seconds or a few minutes to complete, continue. The Florida Supreme Court acted last February to improve the integrity of its process by requiring foreclosing banks to verify the accuracy of their attorneys’ filings, the rule was widely ignored. Attorneys claimed it wasn’t yet in effect. So the Florida Supreme Court clarified in June that the rule was indeed in effect. . . . → Read More: Florida judges ignore their own State Supreme court in facilitating foreclosure It’s funny how the mind works. I was reading on line tonight about weather… one of my favorite pastimes. And I followed a link about the potential for a white Christmas in Altanta and I read there: It won’t happen overnight, but metro Atlanta is expected to receive its first white Christmas since the Chester Arthur administration. And I searched on Chester Arthur, . . . → Read More: Everything comes back to the same thing This is one of the saddest Christmas stories I have read recently. A small Alabama town has stopped paying its pensions to the town’s retirees. The New York Times writes: This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund . . . → Read More: Pritchard Alabama stops paying its pensioners In business there is a saying, which I have felt the reality of many times in my career: You can’t cut your way to greatness. . . . → Read More: What does the GOP envisage in 2030? Many pundits like to excoriate people who supposedly cheated by buying houses while misstating their income. However, it is clear to many studying the current economic crisis that the processes and systems at the major banks are weak. In many instances they are civilly and perhaps criminally negligent, and in some cases fraudulent behavior on the part of banks, servicers, and their lawyers has been noted. An article today in the Huffington Post by Mary Bottari called Trapped in Bank of America Hell the case of one normal middle class family which has always been on time in its mortgage payments is told. . . . → Read More: Foreclosuregate: Bank of America mess Agnotology: Culturally constructed ignorance, purposefully created by special interest groups working hard to create confusion and suppress the truth . . . → Read More: Agnotology But such it is and the ironic humor still need time to fall. The Alabama Representative Spencer Bachus will be the head of the House Financial Services Committee. He is eminently qualified, even as he makes it totally clear for us out here in depression-ville: Bachus, in an interview Wednesday night, said he brings a “main street” perspective to the committee, as opposed . . . → Read More: Hello Alabama: “We are there to serve the banks” – 2012 Vote Bachus out.. please |
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