New York Times:
Offering the lure of cheap government-guaranteed financing, the Federal Deposit Insurance Corporation moved on Wednesday to push its efforts to have private investors buy distressed mortgages from troubled banks.
Garrett Johnson: Just How Corrupt are the Bank Regulators?
Can we really expect the FDIC to effectively regulate the banks that have loaned them money so that they can do their job?
Marshall Auerback: FDIC Shortfall Symptom of Much Bigger Problem
Having the FDIC implement higher insurance charges on the banks is wrong on many grounds. For one thing, it's grossly unfair to force well-run banks to pay higher premiums to pay for the sins of Citi, BOA, or Wells Fargo.
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New crooks just a different address. WAKE UP AMERICA.....
* scratching head and pondering* So , the same people who were in the trenches along side wall street , bringing us into this sub prime mortgage mess , are now the great saviors who are going to buy these loans at basement bargain prices? That is of course after bailout money upon bailout money was tossed into the mix to make all of this possible I guess.
" Under the deal, the F.D.I.C. will create a joint venture with Residential Credit Solutions of Fort Worth, a three-year-old company founded by Dennis Stowe, a veteran of the subprime mortgage industry.
Residential Credit will put up $64 million of its own money to obtain a 50 percent stake in the venture, which will hold and manage the $1.3 billion pool of mortgages from Franklin Bank.
The F.D.I.C. will own the other 50 percent stake in exchange for providing the loans as well as the bulk of the financing. Instead of taking cash for the loans, the F.D.I.C. will accept a government-guaranteed note for $727.8 million with an interest rate of 4.25 percent."
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First Posted: 09-17-09 12:32 AM | Updated: 09-17-09 12:41 AM