Private equity shops and institutional players are buying and packaging (securitizing) nonperforming mortgages from the Federal Housing Administration (FHA) and selling those mortgages to mutual funds and themselves.
The rats are fleeing their listing ships…
BAC is in tentative talks with the U.S. Department of Justice (aka the Obama Mafioso Collection Agency) to pay between $16 billion to $17 billion for its part in selling shoddy mortgages, or originating them, or packaging them, or being a TBTF bank that wasn’t allowed to fail but now has to pay the piper.
Last week the U.S. Government Accountability Office (GAO) released a report titled “Large Bank Holding Companies: Expectations of Government Support.”
And wouldn’t you know it – all the “Too Big to Fail” banks broke out their crack pipes.
ackluster economic growth in the U.S. has nothing to do with financial services regulatory overreach inherent in new Dodd-Frank rules – as some neo-conservatives would have the American public believe.
This is amazing. If you thought there was only one component to the gargantuan student debt scam, think again.
Here’s a question for you: Has higher education become another great American scam?