Rule No. 1: The banksters win … always

Chrysler’s “So God Made A Farmer” ad, featuring the voice of Paul Harvey and images of farm life, proved to be one of the highlights of the 2013 Super Bowl. It also inspired Brett Arends of Marketwatch to pen his own version of the sentimental classic, this one titled “So God Made A Banker”.

Some excerpts:

God said, “I need someone who doesn’t grow anything or make anything but who will borrow money from the public at 0% interest and then lend it back to the public at 2% or 5% or 10% and pay himself a bonus for doing so.”

So God made a banker.

God said, “I need someone who will take money from the people who work and save, and use that money to create a dotcom bubble and a housing bubble and a stock bubble and an oil bubble and a commodities bubble and a bond bubble and another stock bubble, and then sell it to people in Poughkeepsie and Spokane and Bakersfield, and pay himself another bonus.”

So God made a banker…

God said, “And I need somebody who will tell everyone else to stand on their own two feet, but who will then run to the government for a bailout as soon as he gets into trouble — and who will then use that bailout money to help elect a Congress that will look the other way. And then pay himself another bonus.”

If only Mr. Harvey were still around to do it justice.

In a much-less-funny report, the New York Times’ Dealbook column reports on documents filed in a lawsuit against JPMorgan Chase, alleging that at the height of the mortgage boom, the bank defrauded investors by peddling mortgages that it knew were going bad:

“According to the court documents, an analysis for JPMorgan in September 2006 found that “nearly half of the sample pool” — or 214 loans — were “defective,” meaning they did not meet the underwriting standards. The borrowers’ incomes, the firms found, were dangerously low relative to the size of their mortgages. Another troubling report in 2006 discovered that thousands of borrowers had already fallen behind on their payments.

But JPMorgan at times dismissed the critical assessments or altered them, the documents show. Certain JPMorgan employees, including the bankers who assembled the mortgages and the due diligence managers, had the power to ignore or veto bad reviews…. In 2006, for example, a review of mortgages found that at least 1,154 loans were more than 30 days delinquent. The offering documents sent to investors showed only 25 loans as delinquent.

A person familiar with the bank’s portfolios said JPMorgan had reviewed the loans separately and determined that the number of delinquent loans was far less than the outside analysis had found….

An assessment of the loans in one security revealed that 24 percent of the sample was “materially defective,” the filings show. After exercising override power, a JPMorgan employee sent a report in May 2006 to a ratings agency that showed only 5.3 percent of the mortgages were defective.

Such investments eventually collapsed, spreading losses across the financial system.”

And then they paid themselves a bonus.

G’day!

– Jay Bookman

413 comments Add your comment

TBS

February 8th, 2013
9:19 am

The banks did this because there are too many regulations placed on them..

Keep Up the Good Fight!

February 8th, 2013
9:19 am

Rinse, repeat.

Unfortunately too many at the top seem to think that they should be above the same rules that most others must live by

Brosephus™

February 8th, 2013
9:20 am

An assessment of the loans in one security revealed that 24 percent of the sample was “materially defective,” the filings show. After exercising override power, a JPMorgan employee sent a report in May 2006 to a ratings agency that showed only 5.3 percent of the mortgages were defective.

Wow!!!!

TBS

February 8th, 2013
9:20 am

“And now you have the rest of the story”

Lord Help Us

February 8th, 2013
9:21 am

Given the size of Mr. Harvey’s audience, was he considered, ‘Mainstream?’

I enjoyed the ad during the SB, but was disappointed that it was for a Dodge Truck…I am a Ford man…

Brosephus™

February 8th, 2013
9:21 am

TBS

Yep!! All those damned regulations forced them to fudge their report numbers to overinflate the worth of their products to force performance bonuses upon them. We need to get rid of all those regulations that force them to screw Americans over without the common decency to offer a reach around.

Mick

February 8th, 2013
9:22 am

A spot on worthy parody if there ever was one; our conned friends seem to think there is still too much regulation as they line up to the banksters and say, “thank you sir, may I have another”…

DannyX

February 8th, 2013
9:24 am

Just remember folks…

Countrywide is on your side.

barking frog

February 8th, 2013
9:25 am

and nothing has been done about it and the current prosecution
has little chance of success.

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:25 am

And now there is the belief that the housing recovery is a scam. It consists solely of banks buying up the depressed mortgages and renting the houses back to the people living in them.

If I were a less ethical person I would say I’m in the wrong business.

http://www.salon.com/2013/02/07/the_housing_recovery_is_a_myth_partner/

DannyX

February 8th, 2013
9:26 am

“The banks did this because there are too many regulations placed on them..”

Very true. All of those regulations made it impossible to self-regulate.

TBS

February 8th, 2013
9:26 am

Bro

I figured I would get it out of the way.

Those sentiments will be posted before long.

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:26 am

“Please Mr Banker, all that money I have in Savings and Retirement is just sitting there, pleae take it off my hands, purty please”

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:29 am

We should really be looking at dismantling the rating agencies as well.
What a friggin scam.

TBS

February 8th, 2013
9:29 am

barking frog

There will surely be more talk than action.

Lord Help Us

February 8th, 2013
9:31 am

But, all these new regulations are creating ‘uncertainty.’

We cannot have uncertainty…we MUST HAVE CERTAINTY!!!!

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:32 am

If you or I agreed to launder money for Mexican drug cartels how do you think that would end?

I bet they wouldn’t just slap us with a fine in an amount that we can earn back in 21 days of work. I’m thinking it might be bigger than that and might also involve some time staring at cinder blocks and iron bars and wishing I could once again look upon the tight black sweater worn this very morning by one come-hitherish television newscaster.

Joe Hussein Mama

February 8th, 2013
9:33 am

What’s even more troubling is that last month, several banks collectively paid $8.5 billion to settle charges that they failed to perform due diligence on mortgages before securitizing them and that, in many. many cases, they simply fraudulently misrepresented information in the mortgage documents, to include outright fraud and forgery.

In short, they paid a *civil* penalty to make hundreds — and possibly thousands — of CRIMINAL charges go away.

http://www.ritholtz.com/blog/2013/01/why-the-banks-were-thrilled-about-the-latest-8-5b-settlement/

This, and things like it, are why I occasionally call for the head of former BofA CEO Ken Lewis and people like him.

TaxPayer

February 8th, 2013
9:33 am

E-mails! Who woulda ever thought that Wall Street needed a cone of silence around each one of them. Or maybe a self-destruct feature.

alittlecommonsense

February 8th, 2013
9:33 am

God said, “I need someone who will take money from the people who work and save, and give it to someone who is too lazy to work”. So God made a Democrat.

That was just too easy. You aren’t even making me work today Jay.

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:34 am

I guess I should just let that image go…..or call the wife and ask her to tape the entire 4 hour broadcast?

Nah, that might not go over too well.

barking frog

February 8th, 2013
9:34 am

In my subdivision, houses, where owners have walked
away, are slowly being entered into the Fannie Mae
Homepath program which are then sold for about 1/3
of the mortgage amount but the bank mortgage is
paid in full by Fannie Mae. A great opportunity for
buyers and investors but somebody is taking a bath.
Could it be the taxpayer ?

Katherine Helms Cummings

February 8th, 2013
9:36 am

I thought the Dodge ad was awful in several ways. http://ruralandprogressive.org/no-dodging-women/

Jay

February 8th, 2013
9:36 am

” You aren’t even making me work today Jay.”

And it shows in your work product.

Grasshopper

February 8th, 2013
9:38 am

So what kind of creature was God envisaging when he created Timothy Geithner? Ben Bernanke?

TaxPayer

February 8th, 2013
9:39 am

You aren’t even making me work today Jay.

The irony is thick in this one.

Stevie Ray

February 8th, 2013
9:40 am

JAY

Too bad that money was used to influence that crap Dodd-Frank bill to welcome all too-big-to-fail banks and the like. Goldman may be worse that Morgan. Both were selling this knowing the higher risk tranches were already deteriorating. Then the other side of the house was betting against the same bundles they sold to clients and insured by AIG at 2% value based on S&P or Moody’s rating. The sellers made the packages so onerous that is made it near physically impossible to evaluate properly.

The Dodd Frank bill did zero to prevent the need to bail out more too big to fail entities. The could set a grand example by figuring out a means to bust up Goldman who is in tighter than a leech with BO, Bush, and any and all politicians..

Thomas Heyward Jr

February 8th, 2013
9:40 am

God made the Banks.
But he allowed them to fail…………………….BUT………………………
.
the State/Woland stole our money at gunpoint to bail them out.
.
Silly progs………….quit being an Opologist.
…don’t blame everything on God and banks.

Taylor Wooten

February 8th, 2013
9:40 am

Spot on regarding Bankers. Here’s another one, a certain Bank in South Georgia fails , resulting in a $200+ million loss to the Fed and US Taxpayer….and the Officers and Board Members walk away, and keep living their fancy lives “without recourse”

ATL Tiger

February 8th, 2013
9:40 am

Banksters win because of Government.

See Community Reinvestment Act of 1977
http://en.wikipedia.org/wiki/Community_Reinvestment_Act

Also, these provisions were strengthened during the Clinton administration, enforcing a federal law that MANDATES lenders to offer credit throughout their entire market and discourages them from restricting their credit services to high-income markets, a practice known as redlining. In other words, the Community Reinvestment Act encourages banks and thrifts to make loans to riskier customers.

Redneck Convert (R--and proud of it)

February 8th, 2013
9:40 am

Well, the banks wouldn’t need to pull these hijinks if there wasn’t so many regulations. We need to turn them loose till the banking industry looks like the Wild, Wild West. These days you can’t even get fleeced halfway decent when you go to the bank. We try and do it right here in GA but then the Feds nose their way in and shut the banks down. There’s at least 20 banks run by good old boys that would still be in business if it wasn’t for this danged over-regulation.

Turn them loose. Turn them loose, I say:

http://www.youtube.com/watch?v=YdaZ7N-W9vw

Have a good Friday everybody. I sure hope Bookman don’t give us another bunch of weirdos I never heard of to lead off FNM tonight.

Grasshopper

February 8th, 2013
9:41 am

“A great opportunity for buyers and investors but somebody is taking a bath. Could it be the taxpayer ?”

Isn’t it always? You would think that we would all be squeaky clean by now.

Keep Up the Good Fight!

February 8th, 2013
9:41 am

frog, a quick look at homepath.com indicates that the program is selling REO homes which have already been foreclosed. That being the case, there is no mortgage to payoff. The foreclosing lender would have credit bid at the foreclosure sale. Perhaps your understanding of the program is incorrect?

Cherokee

February 8th, 2013
9:42 am

To verylittlecommonsense – I know I’m wasting my breath here, but the point of the article is that the banksters have figured out a way to profit from being too lazy to actually produce anything.

they’ve cost us far more than your boogeyman ‘too lazy to work’ people.

0311/8541/5811/1811/1801

February 8th, 2013
9:42 am

“Rule No. 1: The banksters win … always”

Rule No. 2: Congress sets the rules

Rule No. 3: The Supreme Court upholds those rules

Rule No. 4: Jay ignores rules No. 2 & 3

Jay:

Did you forget that Congress forced banks all over the country to issue these idiotic loans ?

How about a thread on that ?

Ivan

February 8th, 2013
9:42 am

And how many of those in the Senate/House were re-elected? I have voted against every associated one involved that I can ever since, regardless of party affiliation.

And Jay, I also remember your articles in the past during the bailout period were borderline “The entire Nation will die and the world will cease to exist if we don’t do it.”

So why whine about it now?

комиссар (Occupation)

February 8th, 2013
9:43 am

There’s as much chance of real political choice, real change and reform, in this system as there is in a Stalinist one-party state.

Any other questions for the комиссар ?

Stevie Ray

February 8th, 2013
9:44 am

JAY

The Paul Harvey ad was my favorite as well…..until the end when i learned it was another pick-up truck ad…

Joe Hussein Mama

February 8th, 2013
9:44 am

ATL Tiger — “Also, these provisions were strengthened during the Clinton administration, enforcing a federal law that MANDATES lenders to offer credit throughout their entire market and discourages them from restricting their credit services to high-income markets, a practice known as redlining. In other words, the Community Reinvestment Act encourages banks and thrifts to make loans to riskier customers.”

BULLSPIT.

Over 80% of the subprime mortgage loans written prior to 2008 were written by lenders who were NOT EVEN SUBJECT to the CRA.

I swear, I have to debunk that garbage every freakin’ time we start talking about the mortgage meltdown.

Lord Help Us

February 8th, 2013
9:45 am

9:42 – Hassenpfeffer alert…

Skip

February 8th, 2013
9:45 am

And no one goes to jail.

hamiltonAZ

February 8th, 2013
9:45 am

The story that is not getting much print is the fate of community banks after the mortgage crisis. These community based institutions are being ‘taxed’ out of existence (those few that remain) by ever increasing premiums. This has happened even to those banks that were operating sensibly in their small communities. Now they pay substantial amoiunts of their profits to the FDIC.
Sure, many of these community banks fed at the troughs of big banks, laying off loans that never should have been made at unrealistic valuations on the collateral. But it was (and still is) a systemic problem a solution for which should be spread fairly.

Corbin Sharpe. I think, therefore I am...I think.

February 8th, 2013
9:45 am

Simple Truths

February 8th, 2013
9:45 am

Forget having Paul Harvey read it. Let John Facenda read it. Now, he had a voice!

PS, this sounds like Vegas. The house always wins.

Joe Hussein Mama

February 8th, 2013
9:45 am

0311 — “Jay: Did you forget that Congress forced banks all over the country to issue these idiotic loans ?”

Can’t forget something that never happened, Champ.

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:46 am

ATL Tiger and 0311,
That blame target has been debunked time and time again. Why don’t you tow join us in 2013?

All the minorities in the country couldn’t get their hands on enough credit to wreak the havoc that was wreaked on us in the 2000’s.

barking frog

February 8th, 2013
9:46 am

Keep Up
The foreclosure bid by the bank is what is owed on the
mortgage.

Adam

February 8th, 2013
9:48 am

alittlecommonsense did nothing but a troll comment.

As the results of the election show all by themselves, the 47% were behind ROMNEY, not Obama.

It is obvious to everyone not in the bubble that people who are in need and are on government assistance do not tie themselves to a political party for that reason. Lots of rural area Republicans fall under this umbrella. Ironically, they think of themselves as working hard and picking themselves up by their bootstraps all while taking welfare, and accusing the “urban areas” (read: black people) as being where poor people who don’t work live.

And in case you’re going to call race card, the neocon view at this point is best exemplified by Rick Santorum’s response to a question about welfare in general, with “I don’t want to make black people’s lives better by…” This is, truly, what the far right believes: that welfare is synonymous with black people and even if there are white people on welfare, those white people are hard working and/or few in number. All of which is factually false. Yet the belief persists.

Thomas Heyward Jr

February 8th, 2013
9:48 am

Ivan

February 8th, 2013
9:42 am

And how many of those in the Senate/House were re-elected? I have voted against every associated one involved that I can ever since, regardless of party affiliation.

And Jay, I also remember your articles in the past during the bailout period were borderline “The entire Nation will die and the world will cease to exist if we don’t do it.”

So why whine about it now?
———————————————————–
.
Spot on.
As per Bookman…………………TARP was “wildly” successful.
.
.
lol

Stevie Ray

February 8th, 2013
9:49 am

Joe Hussein Mama

February 8th, 2013
9:33 am

The reason the suit was so slow in coming was that the negotiations to eliminate any criminal actions were won by banks and the like.

Why on earth we didn’t use the resolution trust approach to this mess is beyond me. The money should have gone to homeowners…the exposure to doomsday was completely hysteronics.

Adam

February 8th, 2013
9:50 am

ATL Tiger: Also, these provisions were strengthened during the Clinton administration, enforcing a federal law that MANDATES lenders to offer credit throughout their entire market and discourages them from restricting their credit services to high-income markets, a practice known as redlining. In other words, the Community Reinvestment Act encourages banks and thrifts to make loans to riskier customers.

Actually, those regulations do not apply to most banks and lenders that were responsible for the housing bubble. In fact, here is just a small taste of the info that blows this entire theory apart:
——-
Private sector loans, not Fannie or Freddie, triggered crisis
http://www.mcclatchydc.com/2008/10/12/53802/private-sector-loans-not-fannie.html

“Commentators say [a government push to make housing more affordable to Americans of more modest means is] what triggered the stock market meltdown and the freeze on credit. They’ve specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie’s and Freddie’s financial problems.

“Federal housing data reveal that the charges aren’t true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis.

“Subprime lending offered high-cost loans to the weakest borrowers during the housing boom that lasted from 2001 to 2007. Subprime lending was at its height from 2004 to 2006.

“Federal Reserve Board data show that:

-More than 84 percent of the subprime mortgages in 2006 were issued by private lending institutions.
-Private firms made nearly 83 percent of the subprime loans to low- and moderate-income borrowers that year.
-Only one of the top 25 subprime lenders in 2006 was directly subject to the housing law that’s being lambasted by conservative critics.”

Stevie Ray

February 8th, 2013
9:50 am

Jay,

It seemed also that obama put the whole “bring criminal actions against wall street fat cats and telecom’s” concept was squashed. Money talks eh?

bluebengal

February 8th, 2013
9:51 am

But, But, But…….. they are the job creators/producers. It’s those minorities and low life people and foreigners who are the problems remember.

комиссар (Occupation)

February 8th, 2013
9:52 am

“If only Mr. Harvey were still around to do it justice.”

Whad’you mean? The parody already did justice to Harvey’s own bit better than he himself could.

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:52 am

Regarding the Dodge commercial. What they failed to show was a single minority farmer. NPR reported on Tuesday that Hispanics account for 50% of the workers on those farms.

As many in the Twitterverse noted, it extolled an antiquated vision of American farm life that featured almost no Hispanics — though the latter made up nearly half of all hired farmworkers in 2010, according to the U.S. Department of Agriculture.And its focus on family farms struck some viewers as being out of sync with the realities of the modern American food system, which is dominated by industrial agriculture.

http://www.npr.org/blogs/thesalt/2013/02/04/171056911/-god-made-a-farmer-and-the-super-bowl-made-him-a-star

Adam

February 8th, 2013
9:53 am

Conservative belief: Giving rich people money gives rich people incentive to work while taking poor people’s money gives poor people incentive to work.

TaxPayer

February 8th, 2013
9:53 am

The cons insist on Jay adding yet another topic to his Myth Busters collection–”The CRA and the bankrupted Republicans left in its wake.” Or something like that. Funny how cons can always follow Fox’s lead and throw out that bumper sticker comment but can never provide evidence to support their fantasy.

Keep Up the Good Fight!

February 8th, 2013
9:54 am

frog, nope. Once a home is in foreclosure, the loan is eliminated and the bidder owns it free and clear of all liens and encumbrances other than senior debt. If the first lienholder (a bank) forecloses, it owns the property free and clear.

Homepath ONLY covers homes owned by Fannie Mae.

Jay

February 8th, 2013
9:54 am

That’s right, Ivan, and I stand by that. TARP was absolutely necessary. The issues of “too big to fail” and criminal prosecutions are completely independent of the TARP.

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:55 am

As for the faces of farmers in America, 71 percent of agricultural workers in the U.S. were born in Mexico and Central America, according to a 2011 U.S. Department of Labor National Agricultural Workers Survey. Just 29 percent of U.S. farm workers were born in the USA and Puerto Rico.

http://lifeinc.today.com/_news/2013/02/06/16867985-where-are-the-latinos-super-bowl-farmer-ad-fixed

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:55 am

I think the truck they showed was made in Mexico too.
OO

Brosephus™

February 8th, 2013
9:56 am

See Community Reinvestment Act of 1977

Based on the fears of some conservatives, seems like if the CRA were human, it would look like this.

:lol: :lol: :lol:

Thogwummpy

February 8th, 2013
9:56 am

My father was a mortgage banker who retired in the early 90’s, and my brother-in-law has been working for Fannie Mae about 25 years. Its interesting listening to them talk about how FEDERAL REGULATIONS CAUSED BANKS TO WRITE THESE FLAWED LOANS…really giving them no choice but to do so. Now of course, Bookman’s a devoted Leftist…which means, he’s going to omit anything in context or back story that demolishes his premise (you’ll never approach the full truth listening to a liberal). But, fact is…Jay’s only jibber-jabbering part of the story. It was interesting that ABC (of all outlets) did a decent job post-mortgage crisis of presenting a series on what really caused the meltdown. Part of that, exposed an element you’ll never get Jay to admit (it confronts his class resentment wiring, his head would explode!). It depicted the people who knowing full well that their poverty was getting them a pass in the HUD “No Doc” category, and without having to make down payments….they were able to lie on applications and buy all kinds of property (many flipping it fairly quickly). Again, my relative at Fannie Mae tells stories of the countless times they had to approve loans for PEOPLE ON WELFARE (the government considers having “stable income”), for quarter $million + homes. Fannie Mae estimates that if prosecuted for fraud by lying on loan applications [and again, receiving grace from documentation due to HUD rules]…there would be around 4 million people you’d have to put in prison. Doesn’t jibe with Bookman’s “the poor are always victim saints” theory does it! Well…again….you want a bitter case based upon a partial presentation of only selective facts…specifically shaped to demonize one group while exonerating his empathy class…count on Jay.

Hey Jay, why not for once hit your precious Welfare class and do a column of how they’re buying pre-paid credit cards so the Obamadministration can do a direct deposit…allowing the poor to circumvent the restrictions on using Welfare/Food Stamps to buy liquor and cigarettes…or how many are using the pre-paid cards to buy illegal drugs from dealers who now have smart phone card readers? NOPE, never happen…because Bookmanism states that the poor are always good people. Well, been around too many of ‘em to swallow your idealism!

Joe Hussein Mama

February 8th, 2013
9:56 am

S. Ray — “The reason the suit was so slow in coming was that the negotiations to eliminate any criminal actions were won by banks and the like.”

I know. I was absolutely beside myself when the news broke last month. And I still can’t believe it.

“Why on earth we didn’t use the resolution trust approach to this mess is beyond me. The money should have gone to homeowners…the exposure to doomsday was completely hysteronics.”

You know, that’s exactly what I said when the crash happened. If we were going to dump billions into the housing market, then we should have done it like this:

1) Pay off risky mortgages in full. Banks’ exposure is eliminated, borrowers stay in their homes.

2) Paid-off borrowers have to enter into a modified mortgage agreement with the fedgov; the homebuyer gives up all right to any capital appreciation in the home (e.g. if they profit from selling it later, the fedgov gets that money) and the buyer is forbidden from selling below FMV without govt authorization. Borrowers still have to pay off the mortage, but on terms they can manage (perhaps a term >30 years at sub-market rates).

Result: Banks don’t fail. Home prices don’t crash. Buyers remain in their homes. Neighborhoods don’t dry up, thereby crashing the property values of neighbors. And banks and bond rating agencies STILL get investigated and prosecuted.

JamVet

February 8th, 2013
9:56 am

There are millions and millions of honest, hard working Americans who paid their taxes, played by the rules and did absolutely nothing wrong. Except that they thought that in this post Reagan nation the super-wealthy and powerful would also be held accountable to the rule of law. And would behave as Christian, ethical men of vision and decency. Who would actually put the nation before their own self-interests and wallets.

But greed is good. No, that was a slogan from the 80s. By the Bush years it had become greed is god.

So for you trickle downers, enjoy your working poverty. And hope your kids can keep their heads above water.

Long Live the Plutocracy.

southpaw

February 8th, 2013
9:57 am

IQ test for a banker – and a couple of others.

https://cpolley.wordpress.com/2011/08/02/an-iq-test/

Thomas Heyward Jr

February 8th, 2013
9:57 am

Zombies are an obamination to the real God.
(hence proof that Obama and Clinton are false ones).
.
lol

Morality?

February 8th, 2013
9:58 am

Bonnie Fwank and the Dem Congress threatened the banks to loan to unqualified clients or else. The gub’ment PUSHED their agenda down the throats of the banks and the banks that did not go along were threatened with lawsuits. That’s a fact.

Keep Up the Good Fight!

February 8th, 2013
9:58 am

The foreclosure bid by the bank is what is owed on the mortgage.

No frog. You are confused. When a property goes into foreclosure, the lender determines, often by appraisal, a FMV for the property. Generally a bank will bid only up to a % of FMV. It credit bids up to the entire loan amount. In GA, if any deficiency is confirmed, it may go after the borrowers. Again, a foreclosure eliminates the lien on the property.

Finn McCool (The System isn't Broken; It's Fixed)

February 8th, 2013
9:59 am

Let John Facenda read it. Now, he had a voice!

The Autumn wind is a pirate
Blustering in from sea
With a rollicking song he sweeps along
Swaggering boisterously.
His face is weatherbeaten
He wears a hooded sash
With a silver hat about his head
And a bristling black mustache
He growls as he storms the country
A villain big and bold
And the trees all shake and quiver and quake
As he robs them of their gold.
The Autumn wind is a Raider
Pillaging just for fun
He’ll knock you ’round and upside down
And laugh when he’s conquered and won.

Joe Hussein Mama

February 8th, 2013
9:59 am

Thogwummpy — ” Its interesting listening to them talk about how FEDERAL REGULATIONS CAUSED BANKS TO WRITE THESE FLAWED LOANS…really giving them no choice but to do so.”

Bullspit.

Show me a SINGLE instance of any senior officer of any major bank going on camera prior to 2008 and complaining about being “forced” to make those loans. Go ahead, find me one. I’ll be right here when you’re ready to post it.

That said, I won’t hold my breath waiting for it, because you’re not going to *find* any.

DannyX

February 8th, 2013
10:00 am

“Zombies are an obamination to the real God.
(hence proof that Obama and Clinton are false ones).”

Right because we all know Jesus worshiped the rich and mocked the poor.

Blessed are the money changers.
.
lol

комиссар (Occupation)

February 8th, 2013
10:00 am

Meanwhile, as we sit here and grumble, the gravy train rolls on.

Penny Pritzker, Longtime Obama Fundraiser, May Finally Get Her Cabinet Position

[..] Now, it looks like Pritzker might get her commerce gig after all. Bloomberg News quotes three anonymous sources saying Obama could soon name Pritzker as his new commerce secretary. A president naming one of his top fundraisers to a cabinet position is not uncommon in Washington; fundraisers and donors are often rewarded with ambassadorships—or, in a few cases, cabinet jobs. This is how a winning presidential candidate thanks his biggest supporters. Indeed, folks who fundraise for a presidential campaign often go into the process eyeing a plush gig on the other side—if their candidate wins, of course. “You always have people that are interested in what’s next for them” in political fundraising, a former senior Obama campaign staffer says.

None of this is to say Pritzker lacks the qualifications for the job. She has years of experience in the private sector, having run a real estate company and served on the boards of Hyatt, the credit-reporting company TransUnion, and the Wm. Wrigley Jr. Company. That business experience, though, has caused her problems in the political world. Her family partially owned a bank that was ensnared in the subprime mortgage debacle, a blemish on her resume that hurt her chances of securing the commerce secretary job after the 2008 campaign.
[....]

комиссар (Occupation)

February 8th, 2013
10:01 am

Granny Godzilla

February 8th, 2013
10:01 am

CRA again?

Good Lord.

Stevie Ray

February 8th, 2013
10:02 am

Adam,.

No shortage of blame to go around and the GSE’s certainly contributed their fair share at various points in the bubble development and subsequent burst.

http://www.theatlantic.com/business/archive/2010/06/did-fannie-and-freddie-cause-the-housing-bubble/57664/

ATL Tiger

February 8th, 2013
10:02 am

“Over 80% of the subprime mortgage loans written prior to 2008 were written by lenders who were NOT EVEN SUBJECT to the CRA.”

Ok, but didn’t the big commercial banks end up buying those loans? Weren’t those banks subject to CRA? Isn’t this article about ‘banksters’ making off with profits and not the independent lenders?

barking frog

February 8th, 2013
10:02 am

Keep Up
Nope. The house I’m living in was in default to BofA not
foreclosed. Fannie Mae Homepath advertised it for sale.
I offered full listing price and it was accepted. A deed in
lieu of foreclosure was obtained by BofA and the bank
transferred it to Fannie Mae for ? amount and Fannie
Mae sold it to me. Don’t know what the outstanding
mortgage was.

0311/8541/5811/1811/1801

February 8th, 2013
10:03 am

The bottom line is that the Community Reinvestment Act forced loans for individuals with little or no ability to pay them back.

CLASSIC liberal emotion over conservative reason ………. and look what happened.

Anyone who can’t see that is from another planet.

“Other players—greedy investment bankers; incompetent rating agencies; irresponsible housing speculators; shortsighted homeowners; and predatory mortgage brokers, lenders, and borrowers—all played a part, but they were only following the economic incentives that government policy laid out for them.”

http://spectator.org/archives/2009/02/06/the-true-origins-of-this-finan

Keep Up the Good Fight!

February 8th, 2013
10:03 am

Its interesting listening to them talk about how FEDERAL REGULATIONS CAUSED BANKS TO WRITE THESE FLAWED LOANS…really giving them no choice but to do so.

Fact check failure, Whole Foods aisle 7. Clean up please.

Joe Hussein Mama

February 8th, 2013
10:04 am

GG — “CRA again? Good Lord.”

Yep.

Never mind the fact that the first mortage pools to start going bad were the ones where the homebuyers had credit scores in the 680-730 range; the cons all think it was those damned lying poor people who screwed it all up for everybody.

Simple Truths

February 8th, 2013
10:04 am

John Facenda. those were the days. The quality of NFL Films Super Bowl videos really has declined, declined in writing quality, storytelling, and in the narration.

As the fourth period began, Denver’s determined offense still needed more restoration work from Norris Weese. What it got instead was a demolition job from the Doomsday Defense.

By day, the Rams sparkling spirit had kept the game close. But by night, it faded into the black reality of the Pittsburgh Steelers.

The problem was, the only road out of these badlands was through the mountains of the Raider defense.

0311/8541/5811/1811/1801

February 8th, 2013
10:04 am

Morality @ 9:58

“Bonnie Fwank and the Dem Congress threatened the banks to loan to unqualified clients or else. The gub’ment PUSHED their agenda down the throats of the banks and the banks that did not go along were threatened with lawsuits. That’s a fact.”

Thank you !

Stevie Ray

February 8th, 2013
10:05 am

Darwin

February 8th, 2013
10:05 am

And don’t forget LIBOR. Another group of crooks. And just think – the Dixie crowd wanted to put Romney in power. LOL!

Granny Godzilla

February 8th, 2013
10:05 am

0311/8541/5811/1811/1801

February 8th, 2013
10:03 am

The bottom line is that the Community Reinvestment Act forced loans for individuals with little or no ability to pay them back.
.
.
.
.
and they’ll greet us a liberators too!

TBS

February 8th, 2013
10:06 am

“Bonnie Fwank and the Dem Congress threatened the banks to loan to unqualified clients or else”

Dems controlled Congress during the height of the bubble?

DebbieDoRight - The Only Thing Wrong With Capitalism Is Capitalists..

February 8th, 2013
10:07 am

When you follow the link to the original post and read some of the comments, it’ll make you laugh until you fall down!

Some excerpts:

From David: On the 9th Day God created Investment Bankers, not the gutless followers of the 8th.

When Brett’s Son was burned in a Car Crash we financed Integra so he could grow skin from shark grafts, but before that he was rescued by a fire truck (spar) financed by Investment Bankers.

From Tyler: @David Alexa tssk, tssk… David… you have a bit of god complex don’t you. Are these investment bankers using their own money as you are alluding too or do they take from the common man and then use those returns to fill their pockets and give a mere pittance to the foundation they build empires on. Stinks when facts get in the way of your illusions… doesn’t it!

From DDR: It looks like David has a God complex. He must be a republican!

And my favorite comment of all time is from Keep: His statement is short, sweet, incredibly accurate and sincere. I FELT his motivation with every word.

Gotta love that Keep!

комиссар (Occupation)

February 8th, 2013
10:07 am

Jay: “TARP was absolutely necessary.”

Sure, it was necessary. Necessary to rescue the US empire from a likely mortal crisis, outright collapse, with the toppling of the hegemony of the dollar-denominated world financial system and and US military hegemony that’s perched on top of it.

But was it really necessary in the fullest sense? I have my doubts.

Not that the social collapse that would have ensued is anything to take lightly — there is almost no question that we would have seen a full replay of Weimar right here in 2008 and thereafter, which would have put the nation in free-fall much the way Greece is today, with fascism standing a great chance of coming out on top.

But that might eventually come anyway. So it can’t really be said that by dodging catastrophe then that we have dodged it permanently.

skipper

February 8th, 2013
10:08 am

@Hamilton,
You are right on….many of the community banks tried to help keep their communities going, and now are getting stomped by regulators, auditors, etc. Likewise, the new lending regulations are so stringent that getting a loan requires more paperwork than one could imageine. I realize there was some wrong-doing, but the community banks by and large have been beat down. They are taking the bank out of banking……on the local level.

Mike

February 8th, 2013
10:08 am

Bankers and lenders are greedy by nature. I know a few and they are among the stingiest, greediest people, I have ever run across. They also have lots of money.
So, when our government prompted them to make loans they knew were no good, heck yes they tried to dump them as soon as they could! They knew the people could make the payments for a while, at least until the “new” wore off of that shiny home. They also knew from prior history when the buyer would start to have these problems, as their income did not qualify them for that loan in the first place. That’s when they sold them. Right when the payment struggles were starting.
You see, you can’t make an $1800 a month mortgage payment when your income is $3500 a month. No way that will work for very long. These guys knew when to bail. Can’t blame em, really.

Thomas Heyward Jr

February 8th, 2013
10:08 am

Free-market trickle downing benefits a helluva lot more people than Government-controlled trickle upping.
.
Learn it………..know it……………….cuz unfortunantly, we’re all living it.

ATL Tiger

February 8th, 2013
10:09 am

“IN 1992, AN AFFORDABLE housing mission was added to the charters of Fannie and Freddie, which—like the CRA—permitted Congress to subsidize LMI housing without appropriating any funds. A 1997 Urban Institute report found that local and regional lenders seemed more willing than the GSEs to serve creditworthy low- to moderate-income and minority applicants. After this, Fannie and Freddie modified their automated underwriting systems to accept loans with characteristics that they had previously rejected. This opened the way for large numbers of nontraditional and sub-prime mortgages. These did not necessarily come from traditional banks, lending under the CRA, but from lenders like Countrywide Financial, the nation’s largest sub-prime and nontraditional mortgage lender and a firm that would become infamous for consistently pushing the envelope on acceptable underwriting standards.

Fannie and Freddie used their affordable housing mission to avoid additional regulation by Congress, especially restrictions on the accumulation of mortgage portfolios (today totaling approximately $1.6 trillion) that accounted for most of their profits. The GSEs argued that if Congress constrained the size of their mortgage portfolios, they could not afford to adequately subsidize affordable housing. By 1997, Fannie was offering a 97 percent loan-to-value mortgage. By 2001, it was offering mortgages with no down payment at all. By 2007, Fannie and Freddie were required to show that 55 percent of their mortgage purchases were LMI loans and, within that goal, 38 percent of all purchases were to come from underserved areas (usually inner cities) and 25 percent were to be loans to low-income and very-low-income borrowers. Meeting these goals almost certainly required Fannie and Freddie to purchase loans with low down payments and other deficiencies that would mark them as sub-prime or Alt-A.”
http://spectator.org/archives/2009/02/06/the-true-origins-of-this-finan

Brosephus™

February 8th, 2013
10:10 am

My father was a mortgage banker who retired in the early 90’s, and my brother-in-law has been working for Fannie Mae about 25 years. Its interesting listening to them talk about how FEDERAL REGULATIONS CAUSED BANKS TO WRITE THESE FLAWED LOANS…really giving them no choice but to do so.

Do they also talk about how the FEDERAL REGULATIONS forced them to take home those paychecks with profits they made on those loans too? I’m sure their anger at being forced to do something also made them angry enough to return those bonuses from the boom years.

HDB

February 8th, 2013
10:11 am

alittlecommonsense
February 8th, 2013
9:33 am

…or do you want to take it to another level…….

God said, “I need someone who will take money from people who work, save, and invest and give it to someone who rips them off and gets richer…and brags about it”. So God made a Republican.”

You DO see that, don’t you??

Thomas Heyward Jr

February 8th, 2013
10:11 am

Jon Corzine……………..Stalwert Democrat…………..approves this message.
.
lol

Keep Up the Good Fight!

February 8th, 2013
10:11 am

Frog, again deed in lieu of foreclosure is the equivalent of foreclosure. And deed in lieu wipes out the security deed BY LAW. How you bought your home does not prove your claims about how Fannie would have allegedly paid BOA the full amount of the prior outstanding loan. Again, you have gotten the facts confused. Also, BOA could have been the servicer but not the owner/investor.

Your “?” shows that you don’t have the facts to support your original assertion: the Fannie Mae
Homepath program which are then sold for about 1/3 of the mortgage amount but the bank mortgage is paid in full by Fannie Mae

Get the facts and a comprehension of the legal documentation correct. So far you have moved the goal posts all over the field.

Stevie Ray

February 8th, 2013
10:11 am

Joe Hussein Mama

February 8th, 2013
9:56 am

Great minds think alike. One of the best features of the RTC is that they released homes to the market in a very deliberate fashion….over a decade or so that the market didn’t get flooded…Taxpayers made a tidy profit.

Yes, the best way to make the banks whole would been to remove the risk and give the dough to homeowners to reduce bank risk. Balance sheets would likely been shored up enough to eliminate failure exposure…

barking frog

February 8th, 2013
10:12 am

Keep Up
Any property sold for less than what is owed on it
means someone takes a loss on it and that loss is
shared by taxpayers through income tax deductions
unless the loser is a government entity. How big a
share of that loss the taxpayer absorbs is the question.

Morality?

February 8th, 2013
10:12 am

Bonnie Fwank right there on C-Span threatened the banks with a gub’ment lawsuit if they did not lend to the “every day man” aka broke Dem Voters. Obama voted for the bailout as did Nanny Pelosi and Hairy Weed. This should have been handled like the Savings & Loan crisis. Seize their assets, transfer their legit customers to healthy banks, send the criminals to prison and close down the offending institutions. Instead they bailed out the criminals, kept their banks open and kept most of the criminals in charge. Why did the Dems & the Repubs vote to bailout and keep the criminals in charge? Because Congress (both sides) received payoffs and kickbacks (campaign money) from bank lobbyists in the millions. That’s exactly why. We desperately need TERM LIMITS for CONGRESS to rid us of these criminal HOGS at the gub’ment trough.