Goldman execs stand to profit in FDIC deal

[Donnachaidh]

http://www.opednews.com/articles/Goldman-execs-stand-to-pro-by-JohnPeebles-100226-402.html

For OpEdNews: JohnPeebles - Writer

The unfolding mortgage crisis could get a lot worse, for the taxpayer at least. I'm looking back through my history of sites visited under the term "FDIC" and I see numerous articles alarmed by the FDIC's dire fiscal condition.

A few weeks ago, I stumbled across a great video blog entry on how the FDIC was compensating OneWest--a bank owned by major Goldman Sachs players--for every house it sold at less than initial loan value. OneWest acquired the loans from failed lender IndyMac in 2009 based on FDIC assurances that their losses on IndyMac loans would be subsidized.

The revised video entry dated Feb 8th, by thinkbigworksmall.com, contains a thorough accounting of how the OneWest/FDIC deal works. The two fellas at thinkbig provide a real world example of how OneWest profits from their "loss share agreement."

The FDIC responded directly and hotly to the charges, in a press releasedated February 12th. It offer a list of Supplemental Facts that explain how much risk and debt OneWest absorbed, as well as restrictions and procedures on receiving FDIC funds.


more at the link above --

[Nikki Stone1]

1. FUCK FUCK FUCK FUCK FUCK

FUCK!

[truedelphi]

2. Good to know, I guess.

At least my weekend is over now, so does it matter if the coming week is a bit more spoiled? (Dental surgery scheduled for later this week. They are drilling out some of my JAW!)

BTW in terms of the FDIC, among other things is this: the banks are now required to pay the installments for the FDIC insurance ahead of time. I don't remember whether the banks are now required to be six months in advance or a full year.

Of course the Big Boys who received all the generous Bailout funding will have no problem with this. But the smaller banks can only comply by reducing those reserves they were going to use to actually lend out money to consumers. (You all here do remember "consumers" - people who used to go to the bank when they neeeded the loan for payroll or for equipment, etc.?
Back in the day, the consumer would not only get the loan they asked for - they'd bring home a new toaster as well.)

And the icing on the cake for the Top Banksters is this: now when a small bank goes under, the Big Bank who acquires it gets the pre-paid FDIC installments credited to its accounts!

Isn't life great when you are part of the Upper One Percent!

[MercutioATC]

3. Seems like buying GS stock is becoming akin to buying Government Savings Bonds.

Maybe I should rethink my investments.

[amborin]

4. k&r and the FDIC ' s reserves are running low:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=114&topic_id=76199&mesg_id=76361

[Trillo]

5. deja vu Audit the Fed

From your link: "GS played both sides: sell the politicians on a debt proposal which ran counter to their longer term fiscal stability while betting on the higher risk of default through the Credit Default Swaps."

It can't be just me getting a sense of deja vu: was this what Hillary Clinton was getting to the other day with that Heartbroken with Greenspan comment? Of course, particular company names were not mentioned -- The Federal Reserve seems to act as an anonymizing agent.

My best guess is either that Congress has been played as a fool, or they've been playing all of the rest of us as fools.

[Donnachaidh]

6. I personally think they've been playing us for fools

Congress and GS.

[Initech]

7. Urge to kill.... rising...