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Obama admin. views splitting Fannie Mae, Freddie Mac

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Anonymous

Guest
Last night I watched yesterdays hearings on putting more regulation on bankers and the banking system- and one of the things that came up is that they need to find some way for each person in the game to keep "some skin in the game"... In other words everyone involved in the chain should assume some risk...As it was nobody did...The borrower often was getting no money down loans- or even "liars loans" where the brokers got the houses value appraised at more than what they were worth- the brokers passed the risk to the lender- and got paid a % commission making them eager to over value the property- the lender took a % handling fee, so never questioned value- and passed the risk to the GSE's- which then got the risk falsely rated as good by the rating companies that got paid fees , so didn't want to upset the companies they worked for and make them go rating company shopping- the GSE's then got rid of their risk to those companies because of these good ratings by bundling them into securities packages and selling them off to these investment companies- which then insured them thru groups like AIG...So it ended up with everyone in the step making Fatcat earnings- keeping no risk- and $ Trillions of dollars worth of worthless paper with nothing standing behind it floating in the system....
As was brought up by more than one Senator- those FatCAt folks were getting paid the unGodly wages/bonus's for making their companies huge sums of money- while they were pawning off all the risk- ultimately putting it on the US monetary system and the US taxpayer :roll: :(

The real interesting thing that came out from the hearings was that all the regulators and Senators were in consensus- that while the same set of circumstances that caused the Bush Bust will probably never happen again, since folks are now watching for it-- but whatever set of rules/laws are put on the financial/lending/banking/investing world-someone will try to- and will find a loophole to go around them anytime they can...
In other words saying that that industry is made up of a bunch of crooks....
The reason many believe any future Regulator position will need to have a great deal of power and latitude.....
 

Sandhusker

Well-known member
Why is that needed? Barney Frank says there's nothing wrong, and he's the Chairman of the House Banking Committee - he ought to know.
 
A

Anonymous

Guest
Sandhusker said:
Why is that needed? Barney Frank says there's nothing wrong, and he's the Chairman of the House Banking Committee - he ought to know.

Could be-- but the Senate Banking committee says you can't trust Bankers...
 

Sandhusker

Well-known member
Oldtimer said:
Sandhusker said:
Why is that needed? Barney Frank says there's nothing wrong, and he's the Chairman of the House Banking Committee - he ought to know.

Could be-- but the Senate Banking committee says you can't trust Bankers...

So the Senate Banking Committee doesn't trust our Treasury Secretary.... ain't that a peach.
 
A

Anonymous

Guest
Sandhusker said:
Oldtimer said:
Sandhusker said:
Why is that needed? Barney Frank says there's nothing wrong, and he's the Chairman of the House Banking Committee - he ought to know.

Could be-- but the Senate Banking committee says you can't trust Bankers...

So the Senate Banking Committee doesn't trust our Treasury Secretary.... ain't that a peach.

Lots of "turf protection" going on by all the different regulator agencies- all wanting to be annointed as the all powerful Regulator- or not wanting to lose power- or possibly the whole agency....
The one they really seem to put a lot of trust behind- and listen to most is Sheila Bair......Seems like a very sharp lady....
 
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