Wednesday, June 25, 2008
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Banks Wrote Their Own Bailout
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Posted by:
Amanda Carpenter at
7:37 AM
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Excellent story in the Washington Post this morning regarding the housing bailout. Turns out the bill was essentially written by the foreign investment bank Credit Suisse with some extra help from La Raza.
READ HERE.
And that bill passed a Senate cloture vote last night 83-9. There's still a few more votes on it, but there's a good chance it will be sent to the President's desk. Bush has issued a veto threat on it, but that doesn't mean he won't sign a slightly altered version eventually.
Bank of America and Countrywide were also circulating their preferred versions of a bailout through Capitol Hill. That's right. The banks were writing their own bailout. This wasn't done for the little guy.
Here are some highlights:
-A key provision of the housing bill now awaiting action in the Senate -- and widely touted as offering a lifeline to distressed homeowners -- was initially suggested to Congress by lobbyists for major banks facing their own huge losses from the subprime mortgage crisis, according to congressional staff members and bank officials.
-During the first week of January, three officials from Credit Suisse -- two from Washington and one from the mortgage-trading desk in New York -- spent a day on Capitol Hill briefing the staffs of the committees that oversee housing. They gave a brief PowerPoint presentation to the House Financial Services Committee in the morning and to the Senate Banking Committee in the afternoon.They remained in close touch afterward, especially with House Democratic aides.
-Congressional staffers said they also consulted with other banks, such as Citigroup,
and industry groups such as the Securities Industry and Financial Markets Association. It also hashed out concepts with La Raza, the NAACP and low-income housing groups.
-"It is ironic that Congress, responding to a crisis that was created in large part by irresponsible lending, would produce a bill, the main beneficiaries of which are likely to be those lenders," said Dean Baker, co-director of the Center for Economic and Policy Research, a liberal research group.
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I wish this would just go away. I hope Bush does veto it.
Sam thanks for the link. I don't agree with McCain and Obama not voting. This is a $300 billion dollar bailout. They should vote.
Buy a house that you can't afford. Get an adjustable rate mortgage that you don't understand, watch the payments go up and now you really can't afford it and here comes the government to help with tax dollars.
So, where is the bill for people that pay on time? Since I pay on time can I have a year paid by the bank because I am a good customer? I am sure the tax payers won't mind.
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All this means is that the real estate market will be in a prolonged slump for how many years it takes for those who can't afford their homes are finally forced out and the market can bottom out. It's a major dark cloud overhanging a return to open-market pricing. It also means that the cheaters win because the risk they have imposed on honest people will prevent responsible (you know law-abiding people?) from buying their first home or trading up to a better home. We cannot afford all of these bailouts. I'll bet that neither McCain nor Obama will be in town to vote on this. "Prior commitments". |
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I propose that all legislation be first dissected by Hugh before anyone can vote. These children simply cannot be trusted with government without adult supervision. And we have to egomaniac liberal nuts running for president. We are so screwed. |
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5% of home loans are being defaulted. There is no urgent need for anyone or thing to be bailed out for these loans. 5% of the people are walking away from loans they can't pay. 95% are paying their loans as to the contract.
Do you believe the house flippers were dupes of the evil bankers or were they partners? Paper millionaires are now broke and bank profits are down a bit. This seems a fitting end to the inflation created in the housing market. But no with the proposed bailouts they can do it all over again. 100% of the taxpayers will have there dollars and property devalued with each appropriation Congress makes to solve this problem that doesn't exist. |
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Michelle Malkin had an entry yesterday that included the vote:
http://michellemalkin.com/2008/06/24/300-million-mortgage-b ailout-steams-ahead-in-senate-83-9/
Vindex: I'm not sure I understand why this merits some bashing of neocons and Bush. There are 100 senators and 435 representatives and 1 president. Bush's approval rating has dropped to 25%, but the approval rating of a Democratic Congress is in the teens. Almost all 535 of them are a disgrace, and this bailout legislation is the most recent example of it.
Banks wrote the bill for the Senate all the while Senator Dodd (D. CT) is sitting on a sweatheart loan from Countrywide in a conflict of interest that is so obvious that I can't believe he's not being crucified. I've already complained to my lowlife Republican senator (Voinovich-OH) for voting for this bill. So don't complain to me about partianship. |
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I bet that the 83 were all democrats and the 9 were republicans, right?
Welcome, deniers... come in and enjoy your ten minutes of hypocritical hate. |
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I am shocked! This is my "shocked" face. It's not like we have been saying it all along.
Of course, it passed, and of course Bush will sign it (quietly) after his initial posturing.
It helps the banks -- that's an automatic rubber stamp (and already happened once WITHOUT a vote.) Now a bailout for the consumers? No effing way!!
Not that either is a good thing, just lopsided, and 'typical' as Ryan said.
I eagerly wait for the neocon defenders to arrive and actually make excuses for this.
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"It is ironic that Congress, responding to a crisis that was created in large part by irresponsible lending, would produce a bill, the main beneficiaries of which are likely to be those lenders," said Dean Baker, co-director of the Center for Economic and Policy Research, a liberal research group.
No irony to it, just bidness as usual and with all big issues involving Wall Street, bi-partisanship at its best.
"There are aspects that work hugely to the banks' advantage."
Who would have thunk it?
La Raza? Bush just says he'll veto it. I don't think our first Mexican president will. |
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