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HOW MANY TIMES DO TAXPAYERS PAY FOR THE SAME LOSS?
EDITOR’S COMMENTS: DO THE MATH. IT DOESN’T ADD UP. $13 TRILLION IN MORTGAGES. $8 TRILLION IN LOSSES ALREADY REPORTED AND NOW WE ARE HEADING INTO THE SAME TERRITORY AGAIN. In order to believe this we would have to believe that everyone defaulted on their mortgages and no property was worth anything. We already paid for fictitious losses once with TARP and trillions more from the Federal Reserve and US Treasury purchases of worth less mortgage bonds. We’ve been there and done that.
With this kind of math, it is no wonder that Wall Street is doing well, despite reports of losses from their off-balance sheet transactions. Ron Paul is right. We need a full, fair and complete accounting from a source that has no agenda to favor anyone. Without that, read the writing on the wall, Wall Street will have successfully created an infinite supply of new cash from US taxpayers.
Washington Post
Mortgage giants could cost U.S. plenty; J.P. Morgan to resume foreclosures;
Fannie Mae and Freddie Mac, the mortgage firms operating under federal conservatorship, may cost taxpayers as much as $685 billion as the United States covers losses and overhauls the housing-finance system, Standard & Poor’s said Thursday.
Costs for resolving the companies could reach $280 billion, including $148 billion already delivered under a U.S. promise of unlimited support, S&P said in a research report. The government may spend another $405 billion to capitalize a replacement for the two companies, which own or insure more than half of the U.S. mortgage market.
“It appears unlikely in our view that housing and mortgage markets will be able to operate normally without continuing and substantial government involvement,” S&P said, citing the companies’ growing portfolio of unsold homes, a sluggish economy, high unemployment, rising foreclosures and billions in legacy losses.
The Federal Housing Finance Agency, which oversees the companies, said last week that they could need as much as $363 billion in taxpayer aid – including funds already delivered – through 2013. The actual total cost to the Treasury would be $259 billion, because almost 30 percent of the funds would come back to Treasury as dividend payments on its holdings of senior preferred stock.
S&P’s estimate included projected outlays from Treasury to Fannie and Freddie, but did not factor in the dividend payments.
– Bloomberg
J.P. Morgan Chase set to resume foreclosures
J.P. Morgan Chase plans to resume foreclosures in a couple of weeks, a company official said Thursday.
Charlie Scharf, chief executive of J.P. Morgan’s retail financial services unit, said during a conference with analysts in Boston that the company’s review had found some issues such as “robo signing” and that it is being very stringent in double-checking documents. However, he said, the bank risks the loss of millions of dollars for each month that foreclosures are delayed, so it hopes to begin refiling soon. J.P. Morgan froze foreclosures in 40 states affecting about 127,000 loans.
Bank of America recently began restarting some foreclosures, and Ally Financial has been unfreezing foreclosures on a case-by-case basis as individual files are cleared.
– Ariana Eunjung Cha
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