bailouts

[GoldenBoy812]

call it JP Morgan Chase

i think if this shit goes on we end with 2 gigantic banks: BOA and Chase

guess what... in this fucked up credit situation these 2 banks' balance sheets are just solid and well. its quite hard to shell out billions in this situation to take over a business and they both have done it.

tells me some businesses do know how to run it and some just dont get it right

If you are a bank, and not an investment bank, CDO leverage is maxed at 12:1. If you are an investment bank, CDO leverage is maxed at 40:1. I laugh when democrats keep spewing that more regulation was needed. Soon, a massive reform of investment banks (such as Franklin Templeton Investments) is in the making.

:jointsmile:Hindsight is always 20/20.

[dragonrider]

call it JP Morgan Chase

If it has absorbed WaMu, can I call it JP WaMuGan Chase?

[maladroit]

"I do not think much of it is Bush's fault at all."

- i think a LOT of it is george bush's fault:



Fact Sheet: President Bush Calls for Expanding Opportunities to Homeownership

June 17, 2002

Fact Sheet: President Bush Calls for Expanding Opportunities to Homeownership


Today's Presidential Action

Today, President Bush announced a new goal to help increase the number of minority homeowners by at least 5.5 million before the end of the decade. The President's aggressive housing agenda will help dismantle the barriers to homeownership. The President's aggressive housing agenda will help dismantle the barriers to homeownership by providing down payment assistance, increasing the supply of affordable homes, increasing support for self-help homeownership programs, and simplifying the home buying process & increasing education. The President also issued "America's Homeownership Challenge" to the real estate and mortgage finance industries to join in his effort to increase the number of minority homeowners by taking concrete steps to tear down the barriers to homeownership that face minority families.

Background on the President's Homeownership Agenda

Buying a home is the biggest single investment most people will make in their lives. Homeownership is a cornerstone of America's healthy, vibrant communities, and benefits individual families by helping them build stability and long term financial security. But sadly, homeownership is out of reach for many Americans -- especially for minority families. For millions of these families, homeownership is a distant, unreachable dream.

President Bush has a comprehensive agenda to help increase the number of minority homeowners by at least 5.5 million before the end of the decade.

The President also believes that government alone can't close America's homeownership gap. It is critical that our government challenge the private sector to take concrete steps to tear down the barriers to homeownership that face minority families. The President is issuing "America's Homeownership Challenge" to the real estate and mortgage finance industries to join in his effort to increase the number of minority homeowners by 5.5 million families by the end of the decade. Many organizations have already responded to the President's challenge by committing to:

# Substantially increase by at least $440 billion, the financial commitment made by the government sponsored enterprises involved in the secondary mortgage market, specifically targeted toward the minority market;


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in 2004, george bush seeks to increase home ownership rates by eliminating downpayment requirements for mortgages, targetting "first-time buyers with somewhat impaired credit":
USATODAY.com - Bush seeks to increase minority homeownership

bush 2004 campaign boasts of home ownership rates:
CNN.com - Bush hails 'growing' economy - Apr 26, 2004


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2005 testimony of bush appointee (and personal friend) about the bush administration's goal to force fannie may and freddie mac to match the private banks percentage of mortgage loans to low income and minority homebuyers (editted to highlight the guilty parties)

HUD Testimony - Statement of HUD Secretary Alphonso Jackson, before the U.S. House Committee on Financial Services, 4/13/05

Statement of The Honorable Alphonso Jackson, Secretary, United States Department of Housing and Urban Development, before the United States House of Representatives Committee on Financial Services

April 13, 2005

I welcome the opportunity to join Secretary Snow in discussing the Administration's views on how best to improve and reform regulatory oversight of the housing government-sponsored enterprises, or GSEs.

The President has set an ambitious goal: to build an ownership society where everyone has a chance to own a home and a retirement account or health care plan, and to gain a permanent stake in the American Dream.To build an ownership society, the President is committed to helping even more Americans buy homes. That commitment is embodied in the President's challenge to the housing industry to join with us in creating 5.5 million new minority homeowners by the end of this decade.

Our interest in regulatory reform builds on that commitment and is rooted in a responsibility to those whom the GSEs were established to serve: low- and moderate-income individuals who seek affordable homeownership opportunities.

As Secretary Snow has described in his testimony several other troubling problems impacting the safety and soundness of the GSEs have come to light. In addition:

* In July 2004, HUD reported that Fannie Mae and Freddie Mac continued to substantially lag the conventional market in serving first-time homebuyers, especially minority first-time homebuyers.

Congress established the housing goals to ensure that these GSEs fulfill their mandate to provide leadership to the mortgage market. The goals direct Fannie Mae and Freddie Mac to serve low- and moderate-income families and provide funding in underserved areas, such as central cities and rural areas. A third goal directs these GSEs to finance housing for very low and low-income families in low-income areas.

To better ensure these two GSEs' leadership in the mortgage market, HUD recently strengthened the affordable housing goals. By 2008, the new goals will require that the GSEs at least "meet the market" - in other words, their purchases of mortgages in each goal category must be proportional to the share of all mortgages in the conventional conforming market that fall within that category. In the past, HUD's goals have been set "below the market." Other conventional lenders - without the GSEs' Charter Act privileges - have served lower-income families and underserved areas better than the two GSEs have done. HUD believes the GSEs can do at least as well as other conventional lenders.

We also consider it important that fair housing requirements and enforcement that pertain to the housing GSEs remain at HUD, given HUD's expertise in fighting housing discrimination. HUD should have full enforcement power for those authorities, in the same way it enforces the Fair Housing Act.