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Dieseler
06-21-2008, 10:25 PM
I just caught this on another forum. Anyone else heard about it? Throw a link for me if you find it.

Edit: found one http://market-ticker.denninger.net/

http://latimesblogs.latimes.com/laland/2008/06/did-bank-of-ame.html

http://mrmortgage.ml-implode.com/2008/06/21/bofa-perhaps-countrywide-wrote-dodd-shelby-bailout-this-news-must-get-out-there/


Did Bank Of America / CFC Write The Housing Bill?
I'm not even sure where to start with this.

National Review Online has broken a story in which they state:


"National Review Online has obtained an internal Bank of America "discussion document" (pdf here) on the subject of the FHA Housing Stabilization and Homeownership Retention Act of 2008, a.k.a. the Dodd-Shelby mortgage-lender bailout bill.

Yesterday, Tim Carney reported that the prevailing sentiment on Capitol Hill is that the Dodd-Shelby bill "is exactly what Bank of America and Countrywide wanted." BofA is in the process of acquiring Countrywide. Countrywide is currently embroiled in a scandal over its V.I.P. program, under which several powerful politicians, including Sen. Chris Dodd, got preferential loan rates.

This discussion document (dated March 11, 2008) would appear to support the contention that BofA essentially wrote the bailout section of the bill. Almost all of BofA's preferences are mirrored in the Dodd-Shelby legislation. The BofA document even offers PR tips, such as "We believe that any intervention by the federal government will be acceptable only if it is not perceived as a bail-out of the bond market."

This is an outrage. Senator Dodd was discovered to have gotten a "special" mortgage from Countrywide Financial (they are being "acquired" by BofA) as I wrote about in "Where's the FBI". Senators and Reps have since declined to do anything more than allow an "ethics investigation" to take place.

Now we find out that it appear that Bank Of America wrote the damn bill that he and Shelby introduced!

Now why is this important? Because it stinks to high hell, that's why. And more importantly, if you read that linked document closely you will find that GNMA, otherwise known as "Ginnie Mae", should be the issuer of the bailed out loans.

This is an absolute ticking nuclear weapon folks.

You are about to get robbed to the tune of $300 billion dollars. Ginnie Mae is the ONLY issuer that has an EXPLICIT government backstop. That is, if this plan fails you will be be on the hook for every penny of defaulted loan as a taxpayer.

Now I do not know if the actual final bill that will come out and be sent to the President (who has said he'll veto it, by the way) will contain the GNMA underwriting or not.

But for Bank of America to "propose" that the government step in and rewrite, then guarantee hundreds of billions of dollars of retained mortgages that Countrywide Financial (and others) have on its books, while they are supposedly "buying" Countrywide Financial, is an absolute outrage.

This is corporate welfare at its worst - Countrywide is being investigated by virtually every 3-letter agency of the government that exists for the possibility of violating both civil and criminal law, and now Bank Of America, who agreed to buy them around the turn of the year, three months later essentially writes a bill that would remove some of the risk that they are buying something that has more liabilities than assets by shifting a good part of those liabilities to the taxpayer?!

If we the people allow this bill to pass, even if it is vetoed, it appears that there is a veto-proof majority in Congress and the veto will get overridden. That is, we must stop this in Congress and we must stop it NOW.

Mark my words folks. If you do not pass this Ticker around to everyone you know on Monday, and manage to get the Capitol Hill switchboard flooded with calls and faxes demanding that this bill be killed, you will get billed for the entirety of the housing bailout. All of it.

Lenders will receive a windfall in that their potential losses in the bad paper on their books will be transferred to you.

This will be only the first. Using this bill as a template Fannie and Freddie will be next. The mortgage insurers are drowning, with one of them being forced into runoff this last week. The others will likely follow. If and when they fail, Fannie and Freddie's credit book will be forced to trade on its underlying credit quality - that is, it will be exposed as toilet paper and full of fraudulently-sold loans (to them) that contain material misrepresentations as to the credit quality of the property and/or borrower.

This bill will then be extended to cover those losses.

How much loss will you, the taxpayer, eat?

As I have said, my total estimated loss in this party is going to be between $2.5 and $3 trillion dollars, which is roughly equal to one third of the entire public debt of the United States.

That's right folks, Bank Of America's "proposal", which will become law unless you stand up and stop it right now, will ultimately end up costing you, the taxpayer, $3 trillion dollars, and $300 billion of that cost is contained in the bill "as written."

To fund that treasury bonds and bills will have to be issued, and that will drive borrowing costs much higher.

If there was ever a time that you HAD to get off your butt to save yourself, this is it. Congress must hear not only from you today and Monday, but from every one of your friends, and they must tell their friends.

I thought I better pass it along.
Will edit for a link when I find one.

RSLudlum
06-21-2008, 10:36 PM
got a link??

I found a similar story at: http://latimesblogs.latimes.com/laland/2008/06/did-bank-of-ame.html


http://digg.com/business_finance/Did_Bank_of_America_write_the_Dodd_bailout_bill

Sarge
06-22-2008, 07:54 AM
All should read the pdf. BoA is saying 400B likely to default in 5 years.

Notice the government will share in any appreciation of a house once in the new loan. WOW! From 50% down to 10%. That works out to some major money if houses appreciate again.

Will the people be told that when getting a loan?

It would not let me copy to post it here.

Some might want to forward to their Senators that might be receptive.

It needs to be stopped. Big conflict of interest in this bill. Plus the bill has the wording about all credit card transactions being sent to the government.

McCain and Kyle will be a waste of time for me.

Uncle Emanuel Watkins
06-22-2008, 10:20 AM
I just caught this on another forum. Anyone else heard about it? Throw a link for me if you find it.

Edit: found one http://market-ticker.denninger.net/

http://latimesblogs.latimes.com/laland/2008/06/did-bank-of-ame.html

http://mrmortgage.ml-implode.com/2008/06/21/bofa-perhaps-countrywide-wrote-dodd-shelby-bailout-this-news-must-get-out-there/



National Review Online has broken a story in which they state:



I thought I better pass it along.
Will edit for a link when I find one.

The economy is never ruined for the master class regardless. Even when the economy is totally ruined, the nation still has a bank. That's what is important to know. Ruining the economy totally is an excellent way to reestablish a society where the master and slave classes sit at their seperate tables. It almost got this way during the Great Depression.
Healthcare is already set up for distinct master and slave classes. Even if you are a prisoner you get free healthcare while a lower middle class American is left out. While lots of Americans get healthcare, the vast majority of it is subsidized through an American aristocracy whether that be through entitlements, pensions or commissions.
The tax system is also set up to benefit a master and slave type of caste system by the way it robs from the middle class to redisperse wealth to the top and the bottom of society.
The legal sysem also disperses wealth into a primitive caste system by the way it legislates winning clients into a master class and losing ones into a slave class.
The Federal government also practices an economic policy which favors the lobbying of large corporations over the inventiveness of small companies. This policy lowers wages, destroys jobs, erodes the tax base for cities and slows the overall growth of the market.
All of these works of inequity taken together factor in to seperate our national dinner table into a primitive caste system.

bucfish
06-22-2008, 10:59 AM
Digg it

http://digg.com/business_finance/Did_Bank_of_America_write_the_Dodd_bailout_bill

Cowlesy
06-22-2008, 11:19 AM
Tim Carney in his Examiner article nailed it with:

Bank of America is kind of like an investor trying to "flip" a house: they buy a run-down property (Countrywide) for a discount, shell out some campaign contributions and earn some "sweat-equity" through lobbying. If Dodd gets his way, it will be a good investment for Bank of America.

JosephTheLibertarian
06-22-2008, 11:27 AM
you know, the American people wouldn't be robbed if we had more than one currency in the US. But, since we do only have the usd here, being competition is illegal, it hurts us because we are forced to use this piece of dirt currency. its like be forced to buy the same crappy car to get around that is very expensive, because the government controls the industry and doesn't happen to like variety...or competition. inflation of the usd wouldn't affect us at all if we had more currencies in the us.

Uncle Emanuel Watkins
06-22-2008, 11:54 AM
you know, the American people wouldn't be robbed if we had more than one currency in the US. But, since we do only have the usd here, being competition is illegal, it hurts us because we are forced to use this piece of dirt currency. its like be forced to buy the same crappy car to get around that is very expensive, because the government controls the industry and doesn't happen to like variety...or competition. inflation of the usd wouldn't affect us at all if we had more currencies in the us.

The solution to this economic nonsense is to take the issue to the Supreme Court. While the people should own the purse, it is their spending from it which should be held unquestionable in the 16th ammendment. The people need to have this unlimited spending power to match the legal counterfeit created by tyranny. The King is creating this legal counterfeit in an attempt to seperate himself from having to sit at the same dinner table as the untouchable.
So, the Supreme Court needs to establish that the people own the purse (debt) while they are not responsible for paying off any legal counterfeit created by tyranny.

HOLLYWOOD
06-22-2008, 12:02 PM
Banking Finance Committee Chairman Christopher Dodd and Finance Chairman Kent Conrad Capitalize on Bribes from COUNTRYWIDE Financial Corporation

Here the RP Thread:


RPF link/thread: U.S. Senators Chris Dodd & Kent Conrad Corruption masked by Russet's TIMELY Passing! (http://www.ronpaulforums.com/showthread.php?t=143086&highlight=christopher+dodd)

Tucked into many newspapers and Newscasts were reports early Friday morning the 13th of June, 2008, was a report of US Senators on Banking and Financial committees that received special rate loans and large sums of campaign contributions…

http://www.washingtonpost.com/wp-dyn/content/article/2008/06/13/AR2008061303738.html?hpid=topnews (http://www.washingtonpost.com/wp-dyn/content/article/2008/06/13/AR2008061303738.html?hpid=topnews)

From the Wall Street Journal to the Associated Press: the national media is reporting today that U.S. Senators; Christopher Dodd and Kent Conrad , received favorable mortgage rates and removal of processing fees/charges, from a highly controversial mortgage company COUNTRYWIDE FINANCIAL. Additionally, the senators assisted on bailing out COUNTRYWIDE via Bank of America.

The undercover deals gave a corporate insider the type of perks that many, including Obama and numerous lawmakers, blame for infecting the economy and creating a home foreclosure crisis. This week a news publication revealed these U.S. senators and other high-level government officials have benefited from the same perks. First background on the 2 US Senators:

US Senator Chris Dodd (D-CT):

CHAIRMAN of the Senate Committee on Banking, Housing and Urban Affairs.

North Dakota Democrat Kent Conrad:

* Chairman - Committee on Budget

Committee on Finance

* Chairman - Subcommittee on Taxation, IRS Oversight, and Long-Term Growth
* Subcommittee on Energy, Natural Resources and Infrastructure
* Subcommittee on Social Security, Pensions and Family Policy

Committee on Agriculture, Nutrition and Forestry
* Chairman - Subcommittee on Energy, Science and Technology
* Subcommittee on Domestic & Foreign Marketing, Inspection, & Plant & Animal Health
* Subcommittee on Production, Income Protection and Price Support

[/B] All of the well-connected officials received better deals than those available to ordinary borrowers, including lower rates and the waiving of underwriting, processing and document preparation fees. At the very least the loans raise ethical questions because the public officials were in a position to advance the bank’s interests.

Perhaps that is why federal employees are prohibited from receiving gifts obtained because of their official position, including loans on terms not available to the general public. Senate rules forbid members from taking gifts worth more than $100 a year from corporations like Countrywide that employ registered lobbyists. Chris Dodd (D-CT) also received $21,000, Kent Conrad - $12,000 in campaign donations from Countrywide.

In 2004, Sen. Kent Conrad was hunting for a lender for a $1.07 million mortgage on his vacation home in Bethany Beach, Del., when an old friend handed him the phone number of Angelo Mozilo. Dodd borrowed $506,000 at 4.25 percent to refinance his Washington townhouse and $275,042 at 4.5 percent to refinance a home in East Haddam, Conn., according to Portfolio. Quoting internal documents, the magazine said Countrywide waived three-eighths of a point, or about $2,000, on the first loan and a quarter of a point, or $700, on the second.

Other participants include George W. Bush’s Secretary of Housing and Urban Development, Alphonso Jackson, who resigned earlier this year amid a corruption scandal and Bill Clinton’s Secretary of Health and Human Services, Donna Shalala, who is currently the president of the University of Miami in Florida. Incidentally, Shalala is scheduled to receive a Presidential Medal of Freedom this month. Jimmy Carter’s assistant Secretary of State, Richard Holbrooke, also benefited from the loan program.

The question now is when will Democrats, who promised to restore ethics in Washington when they took over Congress, launch an investigation into this widespread scandal?

U.S. Senators; Christopher Dodd (D-CT) and Kent Conrad (D-ND) should GO Directly TO JAIL, Do not Pass GO, Do Not Collect Discounted Mortgage Bribes!

Hey; FBI, US MARSHALL, Secret Service, and state law enforcements... Stop SNORING, WAKE UP, and get the ARREST WARRANTS ISSUED for these politicians and corporate banking financing clowns!

angelatc
06-22-2008, 12:48 PM
n 2004, Sen. Kent Conrad was hunting for a lender for a $1.07 million mortgage on his vacation home in Bethany Beach, Del., when an old friend handed him the phone number of Angelo Mozilo. Dodd borrowed $506,000 at 4.25 percent to refinance his Washington townhouse and $275,042 at 4.5 percent to refinance a home in East Haddam, Conn., according to Portfolio. Quoting internal documents, the magazine said Countrywide waived three-eighths of a point, or about $2,000, on the first loan and a quarter of a point, or $700, on the second.

No way. No freaking way. I don't believe that the interest rates on jumbo loans that low to begin with. Saying they "only" shaved a quarter and three-eighths off is a lie.

I'm not a mortgage broker, but I don't believe it ever got that low.

HOLLYWOOD
06-23-2008, 09:49 AM
COUNTRYWIDE FINANCIAL CORPORATION call's it a VIP service!

So another secret plan and perks for the ELITIST!


So instead of handing $10,000's in a paper bag to the senators... We'll just MASK THE BRIBES as: giving them $10,000's in savings off their mortgages, fees ,& charges! JUMBO MORTGAGE LOANS, NO LESS... ALL INVOLVED, to PRISON!

Another example of the rich getting richer, dissolving of the Middle Class, and profiting off the POOR and ENSLAVED.

SeanEdwards
06-23-2008, 10:27 AM
I love how people who rent, because they can't afford to buy property, will be forced at gunpoint to bail out homeowners and banks. What could be more fair than that? :rolleyes: