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View Diary: Explosive Bloomberg Editorial: Bank Profits are "almost entirely" Taxpayer Money (125 comments)

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  •  So you think the Fed is intercepting (0+ / 0-)

    the bad loans before they can be putback to the originating bank.

    That is preposterous.   The Fed cannot service a single mortgage nor will they.   The putbacks are going on at record rates as it is.

    Yeah, yours is very imaginative CT.

    "The way to see by faith is to shut the eye of reason." - Thomas Paine

    by shrike on Sat Feb 23, 2013 at 05:13:46 AM PST

    [ Parent ]

    •  You didn't read the Stanford document (0+ / 0-)

      You didn't read the Thestreet.com  Link.

      You are acting as if the 2008 banking crisis never happened and that even if it did, it's all been resolved. Nice try there former software company employee ...

      There was never any CT in the FED saving the Banks.  That definitely includes doing whatever they can to save them from being forced to buy back mortgages that are WORTHLESS. These aren't mortgages that just have a problem. They are worthless. There is no servicing that needs to be done. There are 100s of billions of dollars worth of these mortgages that have a face value but zero in real value. No one knows who owns them. There is no proper documentation on them. All the Big banks sold as many as they could to Freddie and Fannie.

      Lets remind ourselves what Fannie and Freddie do:

      The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities (MBS),[3] allowing lenders to reinvest their assets into more lending and in effect increasing the number of lenders in the mortgage market by reducing the reliance on thrifts
      So many of them that Freddie and Fannie still owe 140 Billion to Taxpayers for their own bail out.

      The mortgages that the banks got stuck with at the end of Musical Mortgages they  used as collateral to borrow hundreds of billions at 0%  that they then "invested" in the fed that paid them 3%. It has been discussed here by numerous authors . So has QE111. The fact that you didn't read any of them and  apparently didn't read any coverage of it anywhere since 2008 doesn't make you more knowledgeable. It makes you look like a large black hole void of knowledge. Working at a software company at some unknown time at some unknown place with unknown clients in some unknown job description doesn't do anything to elevate your credibility.

      This conversation has no more purpose because it's quite obvious , you have done no research, you didn't even bother to mention that Freddie and Fannie are in Receivership for buying way too much of this junk and that it would be in the interest of both institutions  to be offloading as much of the toxic waste as  they can back to the TBTF banks. .

       The FED who has done nothing but Bail out the banks would not want the banks to take precious cash it just printed up for them to buy these back and show lower profits which would put even more doubt in their long term or short term viability.

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