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(The New York Times)   Whilst everyone is biatching about Fannie and Freddie, the guy that oversees both companies is trying like hell to get our taxpayer money back from Wall Street for ripping us off. Get that man a beer   (nytimes.com) divider line 35
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3522 clicks; posted to Business » on 18 Jul 2010 at 5:54 AM (3 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2010-07-17 10:51:42 PM
When are we going to get the $$ back from Fannie and Freddie that they lost?
 
2010-07-17 10:56:35 PM
I'll just hold my breath until that happens.
 
2010-07-17 11:01:09 PM

Oh, the same idiots who ignored OFHEO in 2004.


In the fall of 2004, OFHEO reported that Fannie Mae had also manipulated its accounting, and to a degree far more significant than what Freddie had done. At a dramatic hearing in Richard Baker's subcommittee, Fannie's chair, Franklin Raines, stood by the company's accounting, claiming that Fannie was being victimized by an overzealous regulator and its accounting position would eventually be vindicated by the Securities and Exchange Commission (SEC), which had been asked to review the disputed accounting. The tenor of things in Congress was still so supportive of the GSEs that Armando Falcon, the director of OFHEO, received a far more hostile reception than Raines got in Baker's subcommittee. Nevertheless, most accounting specialists viewed Raines's position as unsupportable, and many questioned his judgment both in making a frontal assault on his regulator and in making statements under oath that might later put him in jeopardy. Weeks later, the SEC's chief accountant dismissed Raines's contentions, famously holding up a piece of paper and telling Raines to his face that Fannie's position on the relevant accounting was not even "on the page" of allowable interpretations.


Congress has been the dupes of the Fannie and Freddie primarily through the Congressional Black Caucus, the idiot Barney Frank, and the idiot Dodd.

The accounting stank six years ago and they knew it and chose to ignore it. We are farked over by the incompetence, malfeasance, and reckless pandering to special interests of groups representing people who could not obtain a mortgage without deception, fraud, scheme or artifice.

The money is not there to recover, it has been stolen and because of the massive fraud perpetrated against the American people incalculable damage has been done. Trillions and trillions of dollars simply no longer exist.
 
2010-07-17 11:04:48 PM
dj_bigbird: When are we going to get the $$ back from Fannie and Freddie that they lost?

When the real estate market becomes a "free" market, and not a ponzi scheme.
 
2010-07-17 11:14:40 PM
 
2010-07-17 11:30:50 PM
NewportBarGuy: feckingmorons: Oh, the same idiots who ignored OFHEO in 2004.

Actually, this guy is there to clean up after the other assholes who trashed the place.

On August 25, 2009 President Obama designated Edward J. DeMarco the Acting Director of the Federal Housing Finance Agency (FHFA), the regulator of Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks effective September 1, 2009. (new window)


Yeah, FHFA took over from OFHEO and FHFB when they merged back near the time of Fannie and Freddie being put under recievership.

Congress stimied the work of OFHEO and ignored hundreds and hundreds of accountants while believing the liars at both institutions tell them the sky was not falling.

This guy was with OFHEO, and they didn't listen to him then, why do you think with the same idiots in Congress that ignored him before will let him do anything now? There is no money to get back.
 
2010-07-18 12:00:59 AM
feckingmorons: This guy was with OFHEO, and they didn't listen to him then, why do you think with the same idiots in Congress that ignored him before will let him do anything now? There is no money to get back.

There is money to get, but any money they do get will come out of capital reserves or share sales and that will further tighten lending. I want some goddamn scalps, but at the same time, if they make these institutions take back the bad loans, the banks will take the hit and just pass it right on to us.

Maybe we keep them as they are to suck up all the bad loans like TARP was supposed to do? The losses are already there it's just depends on who takes the hit. We're all paying for it no matter what they do.

Oh, and I noticed that he was with OFHEO in 2006 and was waiting for you to smack me across the face with that because it's in the next sentence of what I quoted. At least according to the article, he's using the enforcement tools which apparently did not exist a few years ago.

I know they had to accept the loans of lose business to wall street firms, but dayuuuum. What the hell were their standards people checking? Anything? Porn? Fark?
 
2010-07-18 12:15:43 AM
NewportBarGuy: I know they had to accept the loans of lose business to wall street firms,

I think it was the SEC checking out porn during working hours.

They have apparently curtailed that. I have withdrawn my application for employment with the SEC as a result.
 
2010-07-18 12:25:49 AM
Who is going to punish the idiots that gave me a few credit cards?
 
2010-07-18 01:08:07 AM
jaylectricity: Who is going to punish the idiots that gave me a few credit cards?

No one. Why? They write those losses off on their taxes. I don't think Citigroup has to pay taxes for, what is the time horizon? 10 years? 6?

WE pay for any losses on credit cards. It's a gigantic shiat sammich, and we all gotta take a bite. I wonder who carved out that little gem. I'd be interested to know.
 
2010-07-18 01:11:41 AM
NewportBarGuy: No one. Why? They write those losses off on their taxes.

Good. I don't want to be punished either.
 
2010-07-18 10:24:53 AM
The Federal Government's interference in the housing market via Fannie and Freddie created this entire mess. Nothing about it was "free market".
 
2010-07-18 10:24:55 AM
Well, technically the bank eats 65% of losses, and the IRS eats the other 35% with the tax write off. It is a reduction in income, not a tax credit.

In other words, a tax credit is a credit towards the tax that you owe (and in some cases is a 'refundable' credit where they cut you a check. An example would be the Earned Income Credit, where according to a magical formula based upon how much you earn could get you a $1000 credit towards your taxes. If you only owed $800, you get a $200 check.

In this case it is a reduction in income. To keep the numbers easy, lets say that your top line revenue is $100,000. Your expenses are $90,000, and the the corporation earned $10,000. At the 35% rate (again, keeping numbers simple), you would write a check to the IRS for $3500, and you get to keep $6500.

If someone stiffs you for payment on $1000. Then you reduce your tax payment by $350, so it really only 'cost' you $650 by the time that the tax man is done.

I hope this guy gets some money back, and that he doesn't have any weird one car accidents.
 
2010-07-18 10:43:59 AM
ALBUQUERQUE, N.M. - President Bush on Friday promoted his efforts to help Americans, especially minorities, "realize their dreams" of home ownership as he wooed the large Hispanic population of a state he barely lost four years ago.

"We want more people owning their own home in America," Bush said. His goal is to have 5.5 million minority homeowners in the country by the end of the decade.

Touting his tax cuts as the economy's savior - and pointing to the strong housing market as proof - Bush said "more people own their own home now than ever." More than 50 percent of minorities owned their own homes in the last three months of 2003 for the first time ever, the president said.

Nationally, more than 75 percent of white Americans owned their own home in last year's fourth quarter.

Bush lost New Mexico to his 2000 Democratic rival, Al Gore (search), by just 366 votes four years ago. This time around, his campaign is lavishing attention on the state in hopes of not letting its five electoral votes slip away again in what is expected to be another close election.

But Democrats say that despite Bush's attempts to tout the strong housing market as an accomplishment of his administration, the president may be vulnerable on the housing issue, especially in the Southwest where the president's opponents see a "housing gap."

And while Bush has emphasized promoting home ownership in his federal housing policy proposals, critics say that help for low-income renters and more affordable housing is a much more sorely needed focus.

"The facts disprove President Bush's theory that the economy is recovering," says Billy Sparks (search), spokesman for Bill Richardson (search), the governor of New Mexico and a former Clinton administration official.

The percentage of Hispanics who own their own homes actually declined in 2003, said Sparks, and eventually, "Bush's deficits are going to drive millions of Americans out of the housing market."

Hispanics are a key constituency in 2004, both for Democrats who have long received their support, and for Republicans who are fighting to make inroads. The Bush-Cheney re-election campaign has Hispanic teams in 30 states. In the offing is an aggressive drive to recruit Hispanic voters face to face and through ads.

Home ownership is the focus of another Bush appearance Friday in Phoenix as the president tries to offset Democratic criticism about lackluster job creation in the recovering economy. He was visiting a carpenter training center and talking to three first time home buyers, a construction foreman and Dough McCarron (search), the president of the United Brotherhood of Carpenters (search) and Joiners of America.

At the Albuquerque event, Bush shed the coat and tie he had been wearing as he left Air Force One. His sleeves rolled up and eyes squinting against a bright sun, he spoke to an outdoor audience stocked with supporters who chanted "four more years!"

To his right was a sign apparently manufactured by the White House that read, "A home of your own." Aides also issued a news release titled "Dismantling The Barriers To Homeownership" to further underscore the message of the day.

Bush's talk of promoting an "ownership society," the idea that Americans own their own homes and own and manage their own health care and retirement plans and small businesses, is a key re-election campaign theme.

Late last year, Bush signed the American Dream Down Payment Act (search) to help families that can afford monthly mortgage payments but not the down payment or closing costs associated with buying a house. The legislation authorizes $200 million a year in down payment assistance to at least 40,000 low-income families.
 
2010-07-18 10:48:40 AM
Trying, huh?

Do or do not. There is no try.
 
2010-07-18 11:27:17 AM
I wonder if we'll ever get all of this money back. source

"From 2004 to 2006, the two [Fannie Mae and Freddi Mac] purchased $434 billion in securities backed by subprime loans, creating a market for more such lending."
 
2010-07-18 12:04:54 PM
Chuck Finley: The Federal Government's interference in the housing market via Fannie and Freddie created this entire mess. Nothing about it was "free market".

Did Rush tell you that?
 
2010-07-18 12:40:23 PM
dj_bigbird: When are we going to get the $$ back from Fannie and Freddie that they lost?

As soon as we all start buying houses we can't possibly afford again.
 
2010-07-18 01:09:46 PM
Sabyen91: Did Rush tell you that?

No, common sense did. Fannie and Freddie guaranteed loans with taxpayer dollars shifting the risk away from the lenders thus interfering with free market forces.
 
2010-07-18 01:58:55 PM
Until they start sending bankers to pound-me-in-the-ass prison, justice won't have been served.
 
2010-07-18 02:21:22 PM
Incontinent_dog_and_monkey_rodeo: Until they start sending bankers to pound-me-in-the-ass prison, justice won't have been served.

and Barney Franks and Maxine Waters, Dodd and their kind.
 
2010-07-18 03:02:15 PM
feckingmorons: NewportBarGuy: feckingmorons: Oh, the same idiots who ignored OFHEO in 2004.

Actually, this guy is there to clean up after the other assholes who trashed the place.

On August 25, 2009 President Obama designated Edward J. DeMarco the Acting Director of the Federal Housing Finance Agency (FHFA), the regulator of Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks effective September 1, 2009. (new window)

Yeah, FHFA took over from OFHEO and FHFB when they merged back near the time of Fannie and Freddie being put under recievership.

Congress stimied the work of OFHEO and ignored hundreds and hundreds of accountants while believing the liars at both institutions tell them the sky was not falling.

This guy was with OFHEO, and they didn't listen to him then, why do you think with the same idiots in Congress that ignored him before will let him do anything now? There is no money to get back.


Not recievership, conservatorship, which wasn't available to OFHEO.
 
2010-07-18 03:09:26 PM
So Fannie and Freddie create a dumping ground for all these shiat mortgage products, which creates an incentive for banks to create even more shiat mortgages. Now they are crying foul because they didn't do their due diligence with OUR money. To quote Ice-T: "Someone's gettin' rich out there, damn sure ain't us"

// wall street got drunk with greed off the alcohol the government provided
 
2010-07-18 03:36:35 PM
Seems like alot of selective reading this morning.

So Fannie and Freddie create a dumping ground for all these shiat mortgage products, which creates an incentive for banks to create even more shiat mortgages. Now they are crying foul because they didn't do their due diligence with OUR money.

FTFA:But there is a big difference between recovering on loans that were contractually improper versus those that involved fraud.....Fannie and Freddie bought only the highest-rated pieces of these deals

dj_bigbird: When are we going to get the $$ back from Fannie and Freddie that they lost?


FTFA:The agency announced last Monday that it had issued 64 subpoenas to a throng of unidentified financial services institutions, seeking documents related to mortgage securities that Fannie and Freddie bought from Wall Street during the boom years.

The subpoenas are designed to tell the agency what many of us want to know: How did Wall Street package and sell private-label mortgage securities to investors, even though the nature and quality of some of the loans crammed inside those tidy little packages were, at best, suspect?

Once that question has been answered, Fannie and Freddie can force the institutions that sold the securities to repurchase the improper loans, allowing taxpayers to recover some of the losses they've swallowed on Fannie's and Freddie's federal bailout.


My favorite line in the article was: Generating actual money from these requests, however, takes time and effort. While Fannie and Freddie can point to a borrower's misstatements on a loan application as reason for a buyback, the banks often counter these requests with arguments that some borrowers are defaulting because they have lost their jobs or suffered other woes - not because they originally lied on their loan applications about their income and finances.

lol, Why should Fanny/Freddy take that into consideration when the bank won't when it repossess the home.
 
2010-07-18 03:40:18 PM
MrStarbuck: // wall street got drunk with greed off the alcohol the government provided

What is most infuriating is that the Ace of Spades in this whole mess, Alan Greenspan, knew dammed well what he was doing wouldn't work and only cause an asset bubble. Read some of his earlier works, "Gold and Economic Freedom" from 1967 is a good place to start. He knew better, but he did anyway, recklessly lowering interest rates and blowing up two asset bubbles in quick succession. He got the market stinking drunk on government alcohol. Interest rates have meaning. You can't just arbitrarily set them and not have problems.

Now of course that he isn't Fed Chairman anymore, he is again saying the right things, we have to cut the defecit etc. But not a peep from him on the Federal reserve and his role in the mess.
 
2010-07-18 03:52:10 PM
Sabyen91: Chuck Finley: The Federal Government's interference in the housing market via Fannie and Freddie created this entire mess. Nothing about it was "free market".

Did Rush tell you that?



well, the FBI disagrees with that in a report on the coming housing crises they released in sept. 2004. their word was 'catastrophic'


they knew about it 4 years before the market collapsed and stated that banks, not loanees, were responsible for 80% of the fraud.

google if u don't believe.


but, our republican liars want to convince the sheeple that fannie freddie caused it.

and the fact that they've bs'ed many is tragic since we supposedly have a 'free' press.

free to spread corporate propaganda.
 
2010-07-18 03:53:30 PM
can u say FBI??


sure you can!
 
2010-07-18 03:54:55 PM
put ur money into a Federal Credit Union and send our banker friends the message they need.
 
2010-07-18 05:08:11 PM
So my wife's Aunt's mortgage got taken over by Fannie May the other day and I saw a post by her "My house is now owed by the gubermint, OBAMA!!!" or some such shiat. All I did was "LOL!" because that women's a wackjob.
 
2010-07-18 07:20:31 PM
I know it's trendy to hate the bankers, but the Fannie/Freddie mess was created by Congress and the FED. The first two up against the wall should be Franks and Greenspan.
 
2010-07-18 08:14:19 PM
Tell him to get the

1. illegals who signed fraudulent mortgages,

2. the appraisers who wrote fraudulent appraisals,

3. the agents who wrote mortgages in order to take kickbacks

4. and the investment bankers who knew the extent of mortgage fraud and tried to eliminate their financial risk by selling these bundled fraudulent mortgages off as investments

to give back all the money they stole.

Treasury Department data shows that incidents of mortgage fraud increased an estimated 1,411 percent from 1997 to 2005.
 
2010-07-19 12:38:04 AM
My god, it's like I've died and been sent to Free Republic as punishment.
 
2010-07-19 02:16:58 AM
feckingmorons: Oh, the same idiots who ignored OFHEO in 2004.

In the fall of 2004, OFHEO reported that Fannie Mae had also manipulated its accounting, and to a degree far more significant than what Freddie had done. At a dramatic hearing in Richard Baker's subcommittee, Fannie's chair, Franklin Raines, stood by the company's accounting, claiming that Fannie was being victimized by an overzealous regulator and its accounting position would eventually be vindicated by the Securities and Exchange Commission (SEC), which had been asked to review the disputed accounting. The tenor of things in Congress was still so supportive of the GSEs that Armando Falcon, the director of OFHEO, received a far more hostile reception than Raines got in Baker's subcommittee. Nevertheless, most accounting specialists viewed Raines's position as unsupportable, and many questioned his judgment both in making a frontal assault on his regulator and in making statements under oath that might later put him in jeopardy. Weeks later, the SEC's chief accountant dismissed Raines's contentions, famously holding up a piece of paper and telling Raines to his face that Fannie's position on the relevant accounting was not even "on the page" of allowable interpretations.

Congress has been the dupes of the Fannie and Freddie primarily through the Congressional Black Caucus, the idiot Barney Frank, and the idiot Dodd.

The accounting stank six years ago and they knew it and chose to ignore it. We are farked over by the incompetence, malfeasance, and reckless pandering to special interests of groups representing people who could not obtain a mortgage without deception, fraud, scheme or artifice.

The money is not there to recover, it has been stolen and because of the massive fraud perpetrated against the American people incalculable damage has been done. Trillions and trillions of dollars simply no longer exist.


Money is nothing but ones and zeros these days, they can make those dollars re-exist if they want to.

Just spawn a few thousand dollars into each bank account. It would only undo the damage done.
 
2010-07-19 06:08:52 PM
At a dramatic hearing in Richard Baker's subcommittee,


I read that as Richard Belzer

www.mysticgames.com
 
2010-07-20 11:00:12 AM
Wait... On the Fark politics tab I was told that Fannie and Freddie were just loans that were made available to poor people, and were completely unrelated to the housing crash.
 
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