Thursday, January 28, 2010

Barney Frank Doesn't Know Banks


Frank taking aim at Wall Street bonuses

Regulating the banking industry is like a cat-and-mouse game, said Detlev Suderow, a lecturer in business at Brandeis University, who is skeptical that reforms can change the industry. “After the crisis is over, after people pay back their TARP funds, they will go back to the old model,’’ Suderow said. “Does Barney Frank really see any fundamental changes on Wall Street? I don’t see it. I don’t think he sees it.’’


Bankers Get $4 Trillion Gift From Barney Frank

No wonder they love 'em!

"Frank says it’s time to abolish Fannie, Freddie" by Jeremy Herb, Globe Correspondent | January 23, 2010

US Representative Barney Frank hopes to “abolish’’ government-run mortgage lenders Fannie Mae and Freddie Mac because they cannot survive in their current form, the Massachusetts representative said at a hearing yesterday.

Yeah, AFTER he PROFITED from them!

Related: Barney Frank Benefited From Bailout Bill

“The remedy here is, as I think the committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance,’’ said Frank, the chairman of the House Financial Services Committee. “That’s the approach, rather than the piecemeal one.’’

While Frank plans to create a new structure to the lending giants, he does not know what shape that will take yet and has no immediate legislation to introduce, a committee spokesman said. The Financial Services Committee is just starting its work on the issue and plans to move slowly.

And how many more billions are we going to have to throw into that rat hole, 'eh?

The committee’s first step to talk to groups like the Center for American Progress and the National Association of Realtors, which have drafted reports on reforming the lending market....



"Mortgage giants Fannie, Freddie too big to shrink; Aid aims to keep market, economy on the right track" by Alan Zibel, Associated Press | December 31, 2009

WASHINGTON - The government’s Christmas Eve pledge of unlimited financial aid to mortgage giants Fannie Mae and Freddie Mac is aimed at making sure the housing market doesn’t take another turn for the worse and cause the economic recovery to unravel.

Oh, and they violated you on Xmas, how thoughtful!

Related: MSM Xmas Gifts: To Fannie and Freddie

Maybe they thought you would not notice that large object in your anus, America.

This insurance policy taken out by the Treasury Department will help keep mortgage rates low, and may wind up being a gift of sorts to struggling homeowners and banks.


But there’s a catch: The housing crisis is now likely to cost taxpayers much more.


The Obama administration’s latest lifeline to Fannie and Freddie will cover unlimited losses through 2012, lifting an earlier cap of $400 billion. It also eases restrictions on the size of the companies’ investment portfolios. That’s a reversal of the Bush administration’s September 2008 plan to shrink the size of the companies’ holdings of mortgage-backed securities.

Yup, the ONE CHANGE we get and it is in the WRONG DIRECTION!!!!

The action, which didn’t need the approval of Congress, could position Fannie and Freddie to get more aggressive in dealing with the housing crisis, perhaps taking troubled mortgage investments off banks’ books.

Isn't that how we got into this mess?

“They’ve cleared the decks to use Fannie and Freddie as a vessel for whatever they want,’’ says Edward Pinto, a housing consultant who served as Fannie’s chief credit officer in the late 1980s. Treasury could also lean harder on Fannie and Freddie to help troubled homeowners avoid foreclosures - and by extension the banks and other investors who own their mortgages....

Boosting the firepower of Fannie and Freddie, which finance three quarters of all new mortgages, also should help keep rates on home loans low just as the Federal Reserve starts dialing back its separate $1.25 trillion program aimed at doing just that. That’s good news for the banking industry....

Yeah, EVERYTHING is ALWAYS GOOD NEWS for the BANKING INDUSTRY, ever notice that?

But the trade-off is that the Treasury will have to cover much more than the $111 billion in losses at Fannie and Freddie it already has funded. Barclays Capital predicts the losses will range from $230 billion to $300 billion.

And WHERE does TREASURY get its $$$, taxpayers? Yeah.

You have to love the VAGUENESS of the MSM!

When they WANT an AGENDA-PUSHED the "government" is "US," but when they need to hide looting it is "government" or "Treasury" money as if it is some separate entity (which indeed, it is)!

Of course, when it is taxes you owe, that is "government's money."

Both companies provide vital funding for home loans, buying mortgages from lenders, pooling them into bonds, and selling them to investors with a guarantee against default.


Time to CLOSE DOWN Fannie and Freddie!

Related: Goldman's Gets Tax Credit For Sticking It In America's Fannie

Why not, huh?

While they traditionally backed loans to relatively safe buyers, they dramatically lowered their standards during the housing boom, and those loans are now defaulting in higher numbers. If the administration does lean on Fannie and Freddie to expand its foreclosure-prevention program, it would be pricey. If Fannie and Freddie were, hypothetically, to start forgiving a quarter of borrowers’ mortgage debt, that would cost another $125 billion to help around 2.5 million to 3 million borrowers, estimates Barclays analyst Ajay Rajadhyaksha.

Oh, so IF THEY HELPED YOU it would be ABOUT the SAME as the $700 BILLION bailout that was WASTED, America!! They could have BOUGHT UP ALL YOUR MORTGAGES for what they PUT INTO BANKS POCKETS!!

Actually, YOU could have, Americans, because IT IS ALL YOUR MONEY!!!!!

The Treasury Department says its only motivation is to make sure investors remain confident that Fannie and Freddie can keep doing their jobs of buying the bulk of mortgages made in the United States and turning them into investments.



Fannie and Freddie must convince everyone from the Chinese central bank to hedge funds to individual investors that it is still safe to buy their debt securities, which they sell partly through weekly auctions. The two companies have sold $2.7 trillion in debt this year, according to Credit Suisse calculations.

That means YOU are HOLDING nearly $3 TRILLION in DEBT alone NOW, taxpayers -- with an UNLIMITED AMOUNT to FOLLOW!!!

Still, by making the change before year-end, Treasury sidestepped the need for an OK from a bailout-weary Congress, infuriating Republicans on Capitol Hill. Treasury gave Fannie and Freddie a bigger lifeline “without any involvement, notice, [or] dialogue with Congress,’’ says Representative Scott Garrett, a New Jersey Republican and a member of the House Financial Services committee, who called yesterday for an investigation into the Treasury Department’s actions.

Yeah, and if Bush had done this Democrats would have been screaming. I'm tired of that game.

And Congressional investigations? Pffft!

One of the worst wastes of time going -- unless you like whitewashes.

Fannie Mae was created in 1938 in the aftermath of the Great Depression. It was privatized 30 years later to limit budget deficits during the Vietnam War.

The BUDGETARY SLEIGHT of HAND never ends, does it, America?

In 1970, the government formed its sibling and competitor, Freddie Mac. After the housing market started to unravel in 2006, mortgage defaults soared, and the companies’ losses mounted. By summer 2008, the companies weren’t able to raise money, and their shares plunged. The Bush administration’s hand was forced.

Yeah, right, they were "forced" to do things.

It wound up taking over the pair a week before the collapse of investment bank Lehman Brothers. The government now has a 79.9 percent stake in each company, the maximum amount possible to still keep the companies off the federal budget.

Translation: That DEBT and DEFICITS are FAR WORSE than what government and newspapers are saying!

Coming soon: The Trillion-Dollar Interest Payment


Also see: Lying Looters Large and Small: The Fannie-Freddie Family

Also see:

MSM Xmas Gifts: To OneUnited Bank

Fed Uses Frank to F*** America

Barney Frank Benefited From State Debts

Barney Frank Goes Straight

Frankly Speaking

Sunday Globe Censorship: Barney Frank Tells Gays to Go F*** Themselves

It's Good to be a Bankster

You should be ASHAMED, Massachusetts, of this turd.