FAIL | BofA Resolves Fannie Mae, Freddie Mac Loan-Putback Dispute

BofA Resolves Fannie Mae, Freddie Mac Loan-Putback Dispute

‘Clearly a Gift’

The settlement is “clearly a gift” to Bank of America, said Chris Whalen, a former Federal Reserve Bank of New York analyst and co-founder of Institutional Risk Analytics in Torrance, California. Fannie Mae and Freddie Mac are “taking a very passive posture so the loss will remain in Washington.”

Check out the Bloomberg article here…

Also from the Ticker

More Back-Door Bailouts (BAC This Time)

OK, how much is this one going to cost us all?

Bank of America Corp., the biggest U.S. lender by assets, paid $2.8 billion to Freddie Mac and Fannie Mae after the U.S.-owned firms demanded the company buy back mortgages they said were based on faulty data. The bank rose as much as 5.6 percent in New York trading.

So BAC pays out $2.8 billion.  What was and is the loss that was potentially going to be shoved up their tails on this deal?

This, incidentally, does not cover servicing problems, which means it’s arguable that if transfers weren’t made it won’t cover that either.  This remains an unknown.

AGAIN: How much money is the taxpayer on the hook for as a consequence of this arguably unlawful allocation of Federal (that is, tax) money from the government to BAC on a “present value” or even “reasonably-foreseeable loss” basis – without a bill originating in The House?

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Comments
One Response to “FAIL | BofA Resolves Fannie Mae, Freddie Mac Loan-Putback Dispute”
  1. PJ says:

    Glad you see it the same way … this is a big so what, a three card monte game with taxpayers money! In fact this type of psycho-dribble coming out of DC, the TBTF cabal and the GSE’s is pretty scary. This will result in noting, nada for the American people!

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