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(Boston Globe)   Banks stuffing bad mortgages into bonds and selling them for a profit. This is a repeat   (bostonglobe.com ) divider line
    More: Scary, back-bond, mortgages, Harris Private Bank  
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2774 clicks; posted to Business » on 26 Mar 2013 at 2:21 PM (3 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-03-26 01:08:24 PM  
This had damn well better be prosecutable this time around
 
2013-03-26 01:41:47 PM  
Damn you Obama! Your socialist policies are preventing Real Amercun(TM) banks from using their Free Market(TM) powers to pay their executives unlimited bonuses.
 
2013-03-26 01:56:53 PM  
I told you we should have killed those farkers.
 
2013-03-26 01:58:55 PM  
Just like little kids, they've learned they can get away with it.

/still not illegal, iirc
 
2013-03-26 02:25:49 PM  
This is because once again the libs are making banks give subprime loans to "urban" people.  Also, Barney Franks is gay.
 
2013-03-26 02:27:56 PM  
This calls for a round of deregulation.
 
2013-03-26 02:27:57 PM  
Coming soon housing crash part 2!
 
2013-03-26 02:34:18 PM  
ftfa
"JP Morgan is currently shopping high-quality, fully documented loans."
 
2013-03-26 02:38:48 PM  
Quick, let's pool our money and go buy insurance against these bonds. I read The Big Short like everybody else. We'll make a killing!

I'm in for four or five thousand bucks. We just need to make the payments for, what, three or four years until these bonds inevitably fail? Then the banks pay us after the government bails 'em out again. If we taxpayers are going to have to save the banks again, I want to at least profit off of it this time around.
 
2013-03-26 02:43:15 PM  
Not only did nobody go to jail for it, but we bailed them out so they didn't actually lose anything.

Why the hell did anybody think it WOULDN'T happen again? When you remove bad consequences from a bad act, you remove the possibility that people might learn from their mistakes.
 
2013-03-26 02:43:26 PM  
Did they ever finalize the requirement that banks retain a stake in the mortgages they pawn off to investors? Or did that get killed off by lobbyists?
 
2013-03-26 02:43:39 PM  
I'm sure that lib squaw will come riding in on her white horse and fix this mess for us.
 
vpb [TotalFark]
2013-03-26 02:52:37 PM  

H31N0US: ftfa
"JP Morgan is currently shopping high-quality, fully documented loans."


FTFA: The $616 million mortgage bond JP Morgan is currently shopping makes an end-run around these commonplace assurances
 
2013-03-26 02:57:44 PM  

H31N0US: ftfa
"JP Morgan is currently shopping high-quality, fully documented loans."


I won't buy unless I can get a AAA guarantee from Moody's.  Bond ratings are a sacred trust between the ratings agency and the person who pays them for the rating.
 
2013-03-26 03:03:41 PM  
The chain is reforming, top to bottom. I am starting to hear those "quit your job today and flip houses for a living without putting any money down!!" ads on the radio again.
 
2013-03-26 03:07:54 PM  
Anyone that is stupid enough to buy a collateralized debt obligation deserves to lose all their money.
 
2013-03-26 03:12:34 PM  

Rapmaster2000: H31N0US: ftfa
"JP Morgan is currently shopping high-quality, fully documented loans."

I won't buy unless I can get a AAA guarantee from Moody's.  Bond ratings are a sacred trust between the ratings agency and the person who pays them for the rating.


I can't handle that much sarcasm all at once.
 
2013-03-26 03:17:08 PM  

Rapmaster2000: This is because once again the libs are making banks give subprime loans to "urban" people.  Also, Barney Franks is gay.


You forgot to mention the Clinton blowjobs and free abortions.
 
2013-03-26 03:29:23 PM  

Rapmaster2000: H31N0US: ftfa
"JP Morgan is currently shopping high-quality, fully documented loans."

I won't buy unless I can get a AAA guarantee from Moody's.  Bond ratings are a sacred trust between the ratings agency and the person who pays them for the rating.


Let me know how that strategy works out for you.
 
2013-03-26 03:30:30 PM  

Marcus Aurelius: Anyone that is stupid enough to buy a collateralized debt obligation deserves to lose all their money.


No, they're legitimate investments. The problem is when the sellers and ratings agencies are in cahoots to mislabel them as being of low risk when they are of high risk and everybody and their dog is taking out policies on these investment vehicles (basically betting on them to fail, whether they own them or not).

If they are rated properly and you can't buy insurance on investments you do not hold then I don't see a problem with mortgage backed securities. However, I do not think that we have put safeguards in place to ensure that we aren't just thrown into Housing Crisis 2: Electric Boogaloo. Instead, the government just threw a bunch of our money at these investment houses and did not one damn thing to keep it from happening again.
 
2013-03-26 03:33:19 PM  
Are those bonds also going to get AAA ratings by S&P?
 
2013-03-26 03:50:16 PM  

gilgigamesh: The chain is reforming, top to bottom. I am starting to hear those "quit your job today and flip houses for a living without putting any money down!!" ads on the radio again.


That might explain the two super lowball offers I got on my house so far. People are knocking 25% off the asking price and expecting me to pay closing costs for them to boot.
 
2013-03-26 03:50:35 PM  
OK, shouldn't we be buying guns just for this?
 
2013-03-26 03:50:44 PM  
Keep making the case for more regulation and you'll get it.  I'm not for more government involvement but if they do this crap again, which it seems they are, then put them under the thumb.
 
2013-03-26 03:54:39 PM  
www.bartcop.com
Too little, too late?
 
2013-03-26 03:55:59 PM  

gilgigamesh: The chain is reforming, top to bottom. I am starting to hear those "quit your job today and flip houses for a living without putting any money down!!" ads on the radio again.


No freak'n way there is anyone dumb enough to still fall for that line.... sigh, of course there is plenty of people dumb enough.

I really should go out and purchase a 2nd house just so that I do not get priced out of the market.
 
2013-03-26 04:05:55 PM  
We all know who is to blame...

cdn.theatlanticcities.com
 
2013-03-26 04:09:14 PM  
Saiga410

gilgigamesh: The chain is reforming, top to bottom. I am starting to hear those "quit your job today and flip houses for a living without putting any money down!!" ads on the radio again.

No freak'n way there is anyone dumb enough to still fall for that line....


Ever watch DIY television, how many home reno shows are currently on their line up?
 
2013-03-26 04:13:54 PM  

neversubmit: [www.bartcop.com image 780x780]
Too little, too late?


D'OH!
 
2013-03-26 04:14:10 PM  
The to-small to be allowed to succeed will end up having to bail them out again.
 
2013-03-26 04:17:17 PM  

Mr_H: gilgigamesh: The chain is reforming, top to bottom. I am starting to hear those "quit your job today and flip houses for a living without putting any money down!!" ads on the radio again.

That might explain the two super lowball offers I got on my house so far. People are knocking 25% off the asking price and expecting me to pay closing costs for them to boot.


It's about location. Where I bought my house last Sept, the inventory is so low right now (less than 50 on the market where in 2010 there were over 400) that the prices have gone up 10% year over year. The initial asking price to sales price in the area is 99% and the only reason why that is that low is because some bank owned homes are over estimated for the condition they are in and price cuts have to be made to actually sell the property.

Last summer when I was shopping for a house I saw around 50 different properties and made 8 offers before one was finally accepted. Investors however are always first on the scene and make lowball cash only offers but if you're not in a hurry to sell, you should see more offers in the next couple of weeks.
 
2013-03-26 04:19:03 PM  

akula: If they are rated properly


And therein lies the problem.  Moodys and the other ratings agencies have soundly proven their complete inability to rate these securities, and I don't see anyone else stepping in to do the job.
 
2013-03-26 04:27:03 PM  

Whistling Kitty Chaser: This calls for a round of deregulation.


And tax cuts for the job creators.  Don't forget the tax cuts.
 
2013-03-26 04:27:52 PM  
Jamie Dimon just passed Condi Rice on my evil people who should choke to death on a bowl of dicks list.
 
2013-03-26 04:45:22 PM  

Mr_H: gilgigamesh: The chain is reforming, top to bottom. I am starting to hear those "quit your job today and flip houses for a living without putting any money down!!" ads on the radio again.

That might explain the two super lowball offers I got on my house so far. People are knocking 25% off the asking price and expecting me to pay closing costs for them to boot.


It sounds like you don't know your real estate market very well...
 
2013-03-26 04:54:50 PM  

Robo Beat: Whistling Kitty Chaser: This calls for a round of deregulation.

And tax cuts for the job creators.  Don't forget the tax cuts.


I thought that was a given.
 
2013-03-26 04:58:48 PM  

Whistling Kitty Chaser: Robo Beat: Whistling Kitty Chaser: This calls for a round of deregulation.

And tax cuts for the job creators.  Don't forget the tax cuts.

I thought that was a given.


Well, deregulation and top-bracket tax cuts do go together like (let them eat) cake and ice cream.
 
2013-03-26 05:03:03 PM  
Honestly, the only way you'd ever get them to stop is if they started executing executives. But as that would never happen, just get used to having the economy flushed down the toilet.
 
2013-03-26 05:33:02 PM  

Marcus Aurelius: Anyone that is stupid enough to buy a collateralized debt obligation deserves to lose all their money.


That's the best part.  It's not their money that they'll be losing.  It'll be everyone else's.  They'll come back to Congress, begging for another bailout, and all the supposed principles of the Tea Party or the left won't keep both parties from giving the banks everyone else's money again.
 
2013-03-26 05:41:48 PM  
I would have no problem with that as long as zero taxpayer dollars were involved.
 
2013-03-26 06:37:52 PM  

unlikely: This had damn well better be prosecutable this time around


It doesn't matter if its a repeat of the same old fraud or a brand new approach, prosecutions will not happen.

"I am concerned that the size of some of these institutions becomes so large that it does become difficult for us to prosecute them when we are hit with indications that if you do prosecute, if you do bring a criminal charge, it will have a negative impact on the national economy, perhaps even the world economy,"
-Eric Holder

The best you can hope for are settlements. But as Elizabeth Warren said (paraphrasing here) "If you can't take them to court then your ability to levy larger settlements will also diminish."
 
2013-03-26 06:40:34 PM  
What really pisses me off is that no one will stop them. We know they are up to the same shiat they pulled years ago and the feds are letting them do it again.
 
2013-03-26 06:51:15 PM  

Lego_Addict: What really pisses me off is that no one will stop them. We know they are up to the same shiat they pulled years ago and the feds are letting them do it again


And all of it is still Bush's fault.
 
2013-03-26 06:52:52 PM  

relaxitsjustme: Jamie Dimon just passed Condi Rice on my evil people who should choke to death on a bowl of dicks list.


There are plenty of these soulless subhumans around, Dimon is only at the top of the list. Should make all the FarkAtheistsTM wish for a vengeful god.
 
2013-03-26 06:55:15 PM  

Why Would I Read the Article: Lego_Addict: What really pisses me off is that no one will stop them. We know they are up to the same shiat they pulled years ago and the feds are letting them do it again

And all of it is still Bush's fault.


I don't give a shiat who's fault it is. Giving banks a freeway to gross profits at the risk of everyone else needs to stop.

Nick Nostril: relaxitsjustme: Jamie Dimon just passed Condi Rice on my evil people who should choke to death on a bowl of dicks list.

There are plenty of these soulless subhumans around, Dimon is only at the top of the list. Should make all the FarkAtheistsTM wish for a vengeful god.


Condi choking on a dick? I'll be in my bunk.
 
2013-03-26 07:26:15 PM  

unlikely: This had damn well better be prosecutable this time around


The too big to fail banks are quite a bit bigger now.  I don't see it happening.

Want this to stop?  Don't borrow, and get other people to stop borrowing.  It'll take 2 years at most to bring the banks down.
 
2013-03-26 07:35:44 PM  

AcneVulgaris: unlikely: This had damn well better be prosecutable this time around

The too big to fail banks are quite a bit bigger now.  I don't see it happening.

Want this to stop?  Don't borrow, and get other people to stop borrowing.  It'll take 2 years at most to bring the banks down.


Unfortunately I've got 15 years left on a mortgage and I still have a monster student loan :-(
 
2013-03-26 07:57:03 PM  

unlikely: AcneVulgaris: unlikely: This had damn well better be prosecutable this time around

The too big to fail banks are quite a bit bigger now.  I don't see it happening.

Want this to stop?  Don't borrow, and get other people to stop borrowing.  It'll take 2 years at most to bring the banks down.

Unfortunately I've got 15 years left on a mortgage and I still have a monster student loan :-(


So, you're a neo-serf?

/at zero myself
//these farkers are getting at little as possible from me
 
2013-03-26 08:53:46 PM  
Well better bust out the ol margarita machine.

/obscure?
 
2013-03-26 09:22:15 PM  
Why not do it again? If enough jobs are  held hostage in jeopardy from an economic crisis, there will always be bailout money. Sadly, I don't think there's any way to penalize parasitic capitalism without hitting legitimate investors and business owners harder.
 
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