Government takes over embattled Fannie, Freddie »
Posted By STONERS 9 months, 4 weeks ago in Business & FinanceThe U.S. government on Sunday seized control of mortgage finance companies Fannie Mae (FNM.N) and Freddie Mac (FRE.N) in an aggressive move to help the distressed U.S. housing market and economy.
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STONERS9 months, 4 weeks ago
"Our economy and our markets will not recover until the bulk of this housing correction is behind us," Treasury Secretary Henry Paulson said at a news conference. "Fannie Mae and Freddie Mac are critical to turning the corner on housing."
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"The decision to take control of the companies, which have $1.6 trillion in debt outstanding, and place them into a conservatorship under their regulator could amount to the largest financial bailout in U.S. history. The Treasury Department, which is taking an equity stake in the two firms, said there was no reason to expect that taxpayers would have to shoulder losses."-
altruisms-enemyComment removed: User banned.
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Tangent0019 months, 4 weeks ago
"...no reason to expect that taxpayers would have to shoulder losses."
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Why does that sound like famous last words?
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Dionys9 months, 4 weeks ago
Word is that Repugnant Cons are already thinking up ways to deny those that have lost their homes in foreclosure votes in the next election due to their address having changed but their having had not enough time to register their new address.
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How very honorable.
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nostalgia9 months, 4 weeks ago
BOTH sides of the aisle are responsible for this mess!
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Look what Sheila Jackson Lee said - you don't have many members of Congress more liberal than Lee
Notice she actually applauds dismantling depression era regulation!
This mess goes back to the Financial Services Competition Act of 1999
CONGRESSIONAL RECORD: Extensions of Remarks HON. SHEILA JACKSON-LEE
Today I rise in support of H.R. 10, the Financial Services Competition Act of 1999
Today's vote represents groundbreaking financial services legislation that would dismantle many of the depression era laws currently hindering the financial services industry from engaging in a modern global marketplace.
CRA is a success story. Between 1993 and 1997, the number of home purchase loans to African Americans soared 62%; Hispanics saw an increase of 58 percent, Asian Americans nearly 30%; and loans to Native Americans increased by 25%
In Congress, we have spent more than twenty years debating how to update the Nation's antiquated banking laws that prohibit banks, securities firms and insurance companies from entering into another's businesses.
http://64.233.167.104/search?q=cache:BbjQwpXE_UsJ:...
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nostalgia9 months, 4 weeks ago
And it doesn't end here
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Auto Executives to Seek Government Help
Top auto executives, including General Motors Corp. Chief Executive Rick Wagoner, will launch a lobbying push this week for billions in government loans to help beleaguered auto makers and their suppliers.
They aim to get as much as $50 billion in low-cost loans, and will try to play down the idea they are seeking a bailout, arguing that Washington has offered similar help to a range of other troubled industries, people familiar with the auto makers' lobbying plans said.
http://online.wsj.com/article/SB122083515707008703... -
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wtagg9 months, 4 weeks ago
Yes, there is irony in the admin to continue to expand the reach of our government. I fear that this can overflow into other areas of speculation, including commodities.
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Trading oil and other energy sources like natural gas/coal/etc... as a commodity does exactly what for our nation's security?
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quackpot9 months, 4 weeks ago
Deregulate the markets to allow the crooks to suck in the profits in the good years and leave the tax payers holding the bag in bad years?
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Bush-economic theory is great for the ultra-rich, bad not for the rest, and really horrendous for the yet unborn that will have to pay off the debt.
We do not need another four years of McSame bankrupt economics.-
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wtagg9 months, 4 weeks ago
It is incredibly bad for security. It destabilizes other things that are traded as commodities and does not set market price based on true market supply and demand.
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moxxxxxxxxxx9 months, 4 weeks ago
Deregulations, privatization a favorite game of republicans to take away money from the government and place in the pockets of corporate elite. Market economics needs to get back to the business that it was intended for- making widgets.
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silvera9 months, 4 weeks ago
To all you cons out there that throw the word, Socialism", around like you know what you were talking about, this is what it really smells like. Soon the distinctions between corporations and the government will be completely erased and you won't have Obama or Karl Marx to blame, only yourselves, for putting that bozo and his pals in the White House.
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nostalgia9 months, 4 weeks ago
This takeover was set up by the housing bailouts bills - Dodd in the Senate and Barney Frank in the House
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Look what Frank said about this takeover
Frank Confirms Treasury Intervention
To Shore Up Fannie Mae, Freddie Mac
Rep. Barney Frank (D., Mass.) confirmed that Treasury Secretary Henry Paulson is planning government intervention to back troubled mortgage giants Fannie Mae and Freddie Mac.
The chairman of the House Financial Services Committee said in a statement Saturday that Mr. Paulson "intends to use the powers that Congress provided it" in a law passed in July to keep Fannie Mae and Freddie Mac stable and functioning
http://online.wsj.com/article/SB122072588739407007...
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vor9 months, 4 weeks ago
I thought the total together was more like 25 million? If this had occured several centuries ago their heads would be appearing on pikes in the public square.
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What do these people do with all this money? It appears to me they use it to pull in and out of the markets (for profit taking purposes) causing my relatively meager money wagered to become incredibly unstable. That has been the pattern in the last year but has been a grand tradition for decades. They simply create more unearned funds from money they never truly deserved. Vacuuming away further wealth to the top percentile and leaving an ever smaller piece of the pie for the common man to fight over. . -
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nostalgia9 months, 4 weeks ago
Don't count on it!
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Fannie Mae Buys Immunity via Rahm Emmanuel, Acorn, Operation Push, Harvard...
President Bush is poised to sign the housing and Fannie Mae bailout bill, after the Senate passed it with 72 votes on the weekend. But an underreported part of this story is that Majority Leader Harry Reid refused to allow a vote on Republican Jim DeMint’s amendment to bar political donations and lobbying by Fannie and its sibling, Freddie Mac.
Freddie Mac Political Donations Have Been Scrutinized Before
Freddie Mac, the home mortgage powerhouse, agreed on Tuesday to pay $3.8 million in civil penalties to the Federal Election Commission, which had accused it of improperly funneling corporate executives’ donations to candidates and holding lavish fund-raisers that often benefited congressmen on an influential House committee.
Freddie Mac Support for Rahm Emanuel
There does seem to be a pattern of distraught companies under the influence of politicians, and successful politicians in Washington DC.
Perhaps the politicians are also under the influence of the distraught companies, or previously on the Board of Directors of a very distressed bank, as in the case of Rahm Emanuel at Freddie Mac.
Link to these and other articles on Fannie and Freddie can be found here
http://www.cdobs.com/archive/tags/Emanuel/
VERY interesting reading
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HateKoolAid9 months, 4 weeks ago
A probable Palin response...... If Fannie and Freddie caused this crises they need to be arrested and prosecuted to the full extent of the law!!!
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nostalgia9 months, 4 weeks ago
Fannie and Freddie should be dismantled after the housing market is stabilized
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Interesting history on these 2 monstrocities:
http://www.creativeinvest.com/fnma/fnmapr12.html -
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nostalgia9 months, 4 weeks ago
Hold on to your hat!
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Freddie and Fannie currently hold $5.2 trillion in mortgage loans and guarantees. The riskiest loans, known as the alt-A and subprime mortgages, constitute about 15 percent of that portfolio, worth about $780 billion
http://tpmcafe.talkingpointsmemo.com/2008/07/25/fr...
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unome29 months, 4 weeks ago
Our government consoildates wealth into the hands of the few while insuring our children and grandchildren's future serfdom.
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tchef9 months, 4 weeks ago
This is from a CNN article this morning. "With Friday's report that foreclosures and delinquencies are at all-time highs, Fannie and Freddie are expected to maintain - if not ratchet up - tighter lending standards. And the fees they have introduced for borrowers with weaker credit histories won't go away anytime soon."
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These lending standards should have never been relaxed. Common sense tells you that if someone can't pay the bills they have and save enough for a down payment they are not going to be able to pay a mortgage to term. When I bought my house in 1992 I was required to put 5% down and I had to show where that money came from to prove that I didn't borrow it.-
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wtagg9 months, 4 weeks ago
When my wife and I bought our home, we had to put down 30% and that was with a stellar credit history because I was self-employed. We've gone from that to 0% down and get money back. A speculative environment was created and that is a high risk environment. The loan companies help that environment due to competing with each other. To compete, they relaxed (an understatement) their requirements to obtain a loan. Couple that with a stagnant economy and you have a scenario ripe with financial disaster.
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Yes, it is terrible to see people lose their homes while the executive management that helped those people get loans they shouldn't had get plump exit buyouts that will in the end be funded from taxpayer funds.
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MyCampingMallComment removed: Spam
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nostalgia9 months, 4 weeks ago
Fannie and Freddie were never REALLY private
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Everyone knew that if they got into trouble the Feds would bail them out
High time to stop having "quasi" private organizations
You've been bailing out Amtrak for years
And since it is election time, do you really think that homeowners who were such poor risks they didn't qualify for Federal help under the bailout legislation will actually be denied?
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