dagblog - Comments for "FHFA will sue Bank of America and other banks"

and Billy Rose

Oxy Mora — Fri, 02 Sep 2011 22:24:28 +0000

In reply to That usually only happens

and Billy Rose

That usually only happens

jollyroger — Fri, 02 Sep 2011 20:47:18 +0000

In reply to You're lucky, I seem to be

That usually only happens when you eat Hawaiin

wood rose....

Thanks for the specifics. I'm

Verified Atheist — Fri, 02 Sep 2011 19:25:59 +0000

In reply to This issue bugged the shite

Thanks for the specifics. I'm definitely out of my element in understanding all of this.

This issue bugged the shite

Oxy Mora — Fri, 02 Sep 2011 19:20:43 +0000

In reply to jollyroger seems to be

This issue bugged the shite out of me but it is important because it goes to DeMarco's motivations--since he has been a key player in slowing down refinances at the Agencies. In otherwords, what is the relationship between what Obama is going to say next week about refinances and this action by DeMArco, who is not a favorite of Geithner, at this exact juncture.

It turns out that the formation of FHFA three years ago, Sept. 7, 2008 included statutes of limitations for actions taken by FHFA. For Contracts, it is 6 years. For Torts, three years (unless the particular state law provides a more lenient time frame).

So DeMarco had to act now if he was going to act.
Did he drag his feet, don't know. He certainly dragged his feet on the issue of refinances. Maybe there is a deal to let the refinances go forward.

Loans from the Fed at 0%. I

Oxy Mora — Fri, 02 Sep 2011 17:57:36 +0000

In reply to Does anyone foresee that if

Loans from the Fed at 0%. I think that will be the end game if B of A, or any of the other banks, gets split up.

Does anyone foresee that if

NCD — Fri, 02 Sep 2011 17:40:00 +0000

In reply to FHFA will sue Bank of America and other banks

Does anyone foresee that if the banks can't afford this process, they will just take more loans from the Fed at 0%?

What I am not seeing is enough criminal prosecutions, which are the only thing that matters to the guys on The Street.

Good question. I'll give it a

Oxy Mora — Fri, 02 Sep 2011 15:22:59 +0000

In reply to Any idea why these suits are

Good question. I'll give it a shot.

With respect to FHFA, there has been a time lapse during which discovery has been taking place. Also the losses keep mounting instead of going the other way. And I suspect there has been indirect pressure by Geithner, et. al.

As for the other suits, it's been hard for non-Agency investors to get hard numbers on the amount of losses being experienced by servicers. And they don't have rights of discovery.

In the meantime there has been the 50 state effort, based on discovery of robo signing abuses, but this is an unwieldy group.

And then I think there has been a big time hands off policy by Obama/Geithner both in deference to banks and in fear of creating more systemic risk. So this created delays, everyone standing around waiting for someone else to act.

Honestly, I think we are headed right back to the bank crisis we were in three years ago.

You're lucky, I seem to be

Verified Atheist — Fri, 02 Sep 2011 15:14:56 +0000

In reply to I snorted some *ayahuasca the

You're lucky, I seem to be sensing a digit going up my (fill in the blank).

jollyroger seems to be

Verified Atheist — Fri, 02 Sep 2011 15:14:17 +0000

In reply to Any idea why these suits are

jollyroger seems to be suggesting a statute of limitations might be the motivating factor.

You heard it first here,

Oxy Mora — Fri, 02 Sep 2011 15:06:08 +0000

In reply to Could you say more about

You heard it first here, Dreamer.

It's just being reported by the Wall St. Journal that the Fed has asked B of A for a contingency plan in case the the bank's financial condition deteriorates further.

Apparently one of B of A's ideas is to issue a tracking stock for Merrill Lynch.

Dick Bove, major bank analyst, has just denigrated the Wall St. Journal's article, saying that FSOC is the entity in charge of contingency plans, and, my words, they've already done that. Sorry, Bove, all your efforts last week to shore up the bank's are falling apart. And, hey, Bove, a contingency plan by FSOC would require action by....uh....Geithner.

To expand on my wild speculation about down sizing, Merrill Lynch has now been thrown into the mix.

So,..uh...Geithner and Obama? Things getting out of hand here?

I feel weird betting against my own IRA, but then again I'm in for the long term.