Posts Tagged ‘Fannie Mae’
Posted by Larry Doyle on June 3rd, 2010 11:52 AM |
I first introduced readers of Sense on Cents to issues embedded within the Federal Home Loan Bank system in the spring of 2009. In an article entitled FHLBs: Red Sea, Dead Sea or Both?, I highlighted:
Charles Bowsher, the former chair of FHLB’s Office of Finance sent a warning shot loud and clear about the “hidden and embedded” losses in this system when he resigned his position as chair of the FHLB Office of Finance in late March (2009). As Bloomberg reported on April 2nd:
Bowsher, who was comptroller general of the U.S. from 1981 to 1996, had a simple reason for resigning last week as chairman of the Federal Home Loan Bank System’s Office of Finance. He didn’t want to put his name on the banks’ combined financial statements, because he was uncomfortable vouching for them.
Well, the shot Bowsher sent a year ago reverberated today in the form an earthquake as reported by the American Banker, Questioning Marks on Mortgage Bonds at San Francisco FHLB:>>>> (more…)
Tags: American Banker Questioning Marks on Mortgage Bonds at San Francisco FHLB, Amy Stewart, Charles Bowsher, embedded losses in RMBS, Espen Robak, Fannie Mae, Federal Home Loan Banks, FHLB office of finance, FHLB San Francisco, Freddie Mac, Karen Shaw Petrou Federal Finance Analytics, losses in banking, losses in RMBS, Pluris Valuation Advisors, Price Waterhouse Coopers C, PWC
Posted in Federal Home Loan Banks, General | 3 Comments »
Posted by Larry Doyle on June 2nd, 2010 1:20 PM |
Has America lost the courage to aggressively address those who commit fraud? Is the American public even aware of the massive fraud perpetrated by those in our financial system which led to our current economic crisis? Are those in Washington willing to take a stand, risk their own skins, call out those engaged in fraud, even if some of the fraudsters occupy neighboring seats at nearby regulatory bodies?
Unless we find people in our government who are willing to make these calls, repeat them publicly in a long, loud fashion, and compel prosecutors to issue indictments, then I fear our union will pay a price and incur a cost that may be immeasurable.
Why so strong? Why so strident? (more…)
Tags: addressing fraud, AIG, Arlen Specter, Barack Obama, Ben Bernanke, bill thomas, Brooksley Born, caveat emptor, CDS, Charles Keating, Conspiracy of Fools, control frauds, Dick Cheney, economic theory, efficient market hypothesis r, Enron scandal, Fannie Mae, FCIC, Financial crisis inquiry commission, financial frauds, fraud in our economy, frauds, Freddie Mac, George Akerlof, George W. Bush, Goldman Sachs, Hank Paulson, heather murren, how to address fraud, IBG YBG, indict fraudsters, investigating fraud, James Stewart's Den of Thieves, Joe Biden, John K. Galbraith, John Paulson, Kurt Eichenwald, Levy Economics Institute, liar loans, Lloyd M. Bentsen Jr. chair in Government Business Relations, market discipline, Mary Schapiro, Nelson's Eye, neutron loans, ninja loans, Paul Romer, Peter Fisher, phil angelides, rational expectations, Representative Doggett, Robert Johnson, Savings and loan fraud, SEC, speculation, systemic fraud, Thomas Ferguson, Tim Geithner, University of Texas, Wall Street, Washington, William K. Black
Posted in General | 4 Comments »
Posted by Larry Doyle on April 9th, 2010 4:19 PM |
Former CEO of Fannie Mae Daniel Mudd took the stand today to get grilled by the Financial Crisis Inquiry Commission. Ooooohhh, ahhhhh….what did we learn from Mr. Mudd? Very little. Although Mr. Mudd fed at the Fannie trough for a good number of years and was paid tens of millions of dollars during his tenure, the fact is he only took over the reins in what amounted to the bottom of the eighth inning.
If the Financial Crisis Inquiry Commission truly wanted to serve America’s interests, they would shine the bright lights on three former Fannie execs who cultivated a culture which, in my opinion and others, allowed for Fannie Mae to cook their books while effectively paying off their friends up on the Hill. Who are these execs? (more…)
Tags: daniel mudd april 9 2010, daniel mudd fannie mae ceo, daniel mudd fcic april 9 2010 m, daniel mudd tenure at fannie mae, Daniel Mudd testimony april 9 2010, Fannie Mae, fannie mae lobbying dollars, fannie mae overreported revenues under franklin raines, FCIC April 9 2010, financial crisis inquiry commission april 9 2010, Franklin Raines Barack Obama, Franklin Raines fannie mae, fraud at fannie mae, Freddie Mac under reported revenues re, James Johnson fannie mae, James Johnson Obama VP search committee, Tim Howard fannie mae, what happened to franklin raines, where is frankliin raines, where is tim howard
Posted in Fannie Mae, FCIC, General | 5 Comments »
Posted by Larry Doyle on April 8th, 2010 11:51 AM |
On Christmas Eve 2009, the Obama administration provided a blank check to the wards of the state known as Freddie Mac and Fannie Mae. (“Fannie and Freddie’s Huge Christmas Bonus”)
What other quasi-government institutions have a very similar business profile as Freddie and Fannie? The Federal Home Loan Bank system, acronym FHLBs, commonly referred to within the financial industry as FLUBs. I will reserve comment on that moniker. Ten months ago, I questioned whether the dynamics at work within the FHLB system would be the equivalent of what has transpired at Freddie and Fannie. I wrote “Freddie Mac, Fannie Mae Deja Vu?” and highlighted:
Can our economy absorb another financial hit of the magnitude of Freddie Mac and Fannie Mae? (more…)
Tags: Bloomberg Jonathan Weil, Fannie Mae, FASB, FASB relaxation of mark to market, Federal Home Loan Banks, FHLB Atlanta, FHLB Boston, FHLB Chicago, FHLB Dallas, FHLB Des Moines, FHLB New York, FHLB San Francisco, FHLB Seattle, FHLB system, FHLB Topeka, FHLBs, financial accounting, FLUBs, Freddie Mac, Housing Crisis, Mortgage Crisis, mortgage problems, Putting Perfume on a Pig, shell game, Subsidyscope
Posted in General | 4 Comments »
Posted by Larry Doyle on April 7th, 2010 3:41 PM |
Does anybody have any doubt that massive fraud within our mortgage industry played a large part in our current economic crisis? America continues to suffer from the fakers and phonies within our financial regulatory structure (including Alan Greenspan) who fail to accept responsibility for their shortcomings and the resultant frauds.
The mortgage fraud grew over time in order to feed the Wall Street machine the collateral it needed to execute a wide array of structured transactions. This need for increasing volume of mortgage originations was a critical point in one of my earliest blog posts written in November 2008, “The Wall Street Model is Broken… and Won’t Soon be Fixed!!” I wrote: (more…)
Tags: Alan Greenspan, Citigroup, Citigroup consumer lending, Citigroup Underwriter Warned of Mortgage Lapses, David Bushnell, Fannie Mae, FCIC, Financial Crisis Inquiry Commission April 7 2010, financial frauds, financial regulators, Freddie Mac, Gary Crittenden, Mortgage Crisis, mortgage fraud, mortgage originations, Mortgages, originate to distribute, private profit social loss, Richard Bowen, Richard Bowen testimony April 7 2010, Robert Rubin
Posted in Citigroup, General, Mortgage Crisis | 5 Comments »
Posted by Larry Doyle on March 11th, 2010 2:08 PM |
…shame on you, fool me twice, shame on me!!!
There are a handful of financial journalists who pull no punches in telling the absolute truth and in providing real transparency. Bloomberg’s Jonathan Weil holds a special spot in the Sense on Cents Hall of Fame for his determination in calling people and institutions on the carpet. From Wall Street to Washington to around the global financial landscape, Weil leaves no stone unturned in promoting integrity. His commentary today is superb. Please share it with friends. Weil writes, Greece Lifts a Page From Citigroup’s Playbook:
Is it too much to ask for the world’s titans of government and finance to speak credibly when they open their mouths? (more…)
Tags: Ambac Financial, balance sheets, Bear Stearns, Ben Bernanke, cds in europe, credit default swaps in europe, Dick Fuld, Fannie Mae, financial regulatory reform, fool me once, Freddie Mac, GAO, George Papandreou, Greece, Greece Lifts a Page from Citigroup's Playbook, Hank Paulson, herb allison, jonathan Weil, Lehman Bros, rating agencies, SEC, Sense on Cents Hall of Fame, too big to fail, transparency, Treasury, Vikram Pandit
Posted in General | 2 Comments »
Posted by Larry Doyle on March 5th, 2010 12:38 PM |
“Let’s see, do you want to go for the prize behind Door #1 or take a chance on what’s in the big box?”
“Well Monty, I’m playing with your money so it doesn’t really matter now, does it?”
1970’s vintage TV may have been entertaining, but is the current deal-making used by Fannie Mae to liquidate housing inventory truly the way to develop a healthy and robust housing market?
Just what is Fannie Mae doing? (more…)
Tags: American Banker, Fannie Cuts FHA-Like Deals to Sell Homes, Fannie Mae, Fannie Mae Homepath, FICO scores, home appraisals, housing, Housing Crisis, housing finance, John Dutra, low down payments, mortgage finance, mortgage insurance
Posted in Fannie Mae, General | 2 Comments »
Posted by Larry Doyle on March 4th, 2010 12:33 PM |
According to testimony this morning from Treasury official Herb Allison, currently charged with overseeing the management of the TARP, there are no financial firms now guaranteed as ‘too big to fail.’
What rock did Herb just crawl out from?
The Wall Street Journal addresses Herb’s ridiculous comment in writing, Treasury Official: ‘No Too Big to Fail Guarantee’ for Big Financial Firms:
There is no U.S. government guarantee to protect the largest financial firms, a Treasury Department official said Thursday, as a congressional watchdog criticized the $45 billion in government aid provided to Citigroup Inc. (more…)
Tags: Allison Congressional testimony March 4 2010, Citigroup Vikram Pandit Congressional testimony March 4 2010, Damon Silvers, Elizabeth Warren, Fannie Mae, Freddie Mac, herb allison, Herbert Allison, TARP, tbtf, too big to fail, Treasury Official:'No Too Big to Fail Guarantee' for Big Financial Firms, U.S. Treasury, U.S. Treasury Herb Allison testimony March 4 2010
Posted in General, U.S. Treasury | 1 Comment »
Posted by Larry Doyle on February 26th, 2010 6:22 PM |
Is it any surprise that the next drawdown in a multi-billion dollar ongoing bailout gets posted at 5pm on a Friday afternoon? Not in this economy where Uncle Sam, that’s you and me boys and girls, continues to pay for the woefully mismanaged financial and legislative practices of those in Washington.
The gutless typically prefer to operate under a veil of darkness.
I am referring to the sinkhole that is the organization known as Fannie Mae, as it comes back to the well for another $15 billion. Bloomberg highlights this ongoing bleeding in writing, Fannie Seeks $15 Billion in U.S. Aid After 10th Straight Loss:
Fannie Mae, the mortgage-finance company under federal conservatorship, said it will seek $15.3 billion in aid from the U.S. Treasury after posting a 10th straight quarterly loss. (more…)
Tags: Barack Obama, Barney Frank, Chris Dodd, Daniel Mudd, Fannie Mae, Fannie Mae losses, Fannie Seeks $15 Billion in U.S. Aid After 10th Straight Loss, Franklin Raines, housing, Housing Crisis, housing policy, John Kerrey, Mortgage Crisis, Mortgages
Posted in Fannie Mae, General | 3 Comments »
Posted by Larry Doyle on December 30th, 2009 12:16 PM |
Who will reveal the truth and consequences embedded in the operations of Washington’s newly designed slush funds housed within Freddie Mac and Fannie Mae? The Washington Way all too often pays off those who promote the administration’s interests (both Republican and Democrat alike) while sticking future generations with an ever larger bill.
Is slush fund too harsh a characterization for a Washington-issued blank check? In my opinion, a blank check in Washington has never been anything other than that.
Ron Paul (R-TX) has created quite a stir in 2009 given his continual calls to audit the Fed. Who in Congress will call for the same treatment for Freddie and Fannie?
Let the record show that on December 30th, Sense on Cents is issuing what will be the first of many calls to audit Freddie Mac and Fannie Mae. Why am I calling for an audit of these entities? (more…)
Tags: audit Freddie and fannie, audit the fed, blank check for freddie and fannie, credit risk in mortgages, effective duration, Fannie Mae, Fannie Mae audit, freddie and fannie risks, Freddie Mac, Freddie mac audit, mortgage backed securities risks, mortgage risks, prepayment risk, risk in mortgages, risks within freddie and fannie, Ron Paul, what is duration
Posted in Fannie Mae, Freddie Mac, General | 13 Comments »
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