Isn’t it amazing after all these years you’ve never heard the government mention a word about rehypothecation and the added undisclosed risk to your collateral? This is still the best suggestion so far – but it will take a united community from coast to coast to make the tsunami of change:
“The best thing to do is strip ALL the mortgage loans, including REOs, written for the last decade from the banks; have the states take them over and reconstruct them with the borrowers at 0%-2% for 30 years and start creating the desperately needed revenues, in lieu of litigation.”
So, what’s this? Another charade? Did Geithner or Bernanke suggest, “Hey Barack we’ll fix it, we’ll just file a big lawsuit against everybody and then we’ll cut a deal that let’s the banks off the hook for everything for the $20 billion the AG’s won’t settle on…”
Published: September 1, 2011
The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.
The Federal Housing Finance Agency suits, which are expected to be filed in the coming days in federal court, are aimed at Bank of America, JPMorgan Chase, Goldman Sachs and Deutsche Bank, among others, according to three individuals briefed on the…
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