Bank Of America's Backdoor Bailout

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Bank Of America's Backdoor Bailout - Dumping Mortgage Trash Onto Taxpayers Via Fannie Mae

Posted By: afriend [Send E-Mail]
Date: Saturday, 17-Sep-2011 04:58:51

Really who wants to argue,that we are not seeing just more of the same old same old.Cheney's mouthpiece has been mocking for weeks,about the status quo remaining the same,while at the same time beating on the guy in the white house like it is his fault that these programs or settlements are not moving forward.People this fraud was going on long before Obama got in the White House. What I do know for sure about Obama, is that for whatever reason he allows the looting of America to continue unabated,I had hoped he was an honorable man. ================== FORTUNE -- Taxpayers may not realize it, but they just bailed out Bank of America again, this time to the tune of more than a half billion dollars. The Charlotte, NC-based bank was one of the biggest recipients of bailout funds during the financial crisis. But Bank of America continues to face deep problems related to its troubled mortgage portfolio and investors have battered the stock, which has plunged over 40% so far this year. That's escalated concerns that the bank may need to raise more capital. Yves Smith at Naked Capitalism has even started a BofA death watch. But apparently the federal government is determined to resurrect BofA: the Wall Street Journalreports the feds have just used Fannie Mae, which is controlled by the U.S. government, to infuse BofA with $500 million and ease one of the bank's biggest headaches. Yesterday afternoon on CNBC, Bank of America CEO Brian Moynihan mentioned that five of BofA's six businesses were making money. The one black spot was its massive portfolio of problematic mortgages and the liabilities flowing from it. Moynihan also mentioned that BofA had just sold some "mortgage servicing rights" as part of its balance sheet strengthening efforts, but he didn't elaborate. According to the WSJ, Fannie Mae spent $500 million to buy the servicing rights to a big chunk of the "seven million loans still causing the most problems." Although the $500 million is a paper loss to BofA, in that the rights were "originally worth more," it looks like BofA is still getting a good deal because the portfolio's "value is expected to deteriorate further." http://www.blacklistednews.com/Bank_Of_America%27s_Backdoor_Bailout_-_Dumping_Mortgage_Trash_Onto_Taxpayers_Via_Fannie_Mae/15748/0/0/0/Y/M.html afriend