Banks To Ask Government To Take Bad Loan Risk: Report

[DeSwiss]

Banks to ask government to take bad loan risk: report

Reuters
Thu Feb 14, 2008 7:31am EST

NEW YORK (Reuters) - The banking industry is proposing to members of the U.S. Congress and the White House that some of the risk of troubled mortgages should be shifted to the federal government, according to a report in the Wall Street Journal on Thursday.

One proposal has been advanced by officials at Credit Suisse Group (CSGN.VX: Quote, Profile, Research) and would let the U.S. Federal Housing Administration guarantee mortgage refinancings by some delinquent borrowers, said the report.

The Credit Suisse plan would open the way for nearly 600,000 sub prime borrowers, many of whom are delinquent on their mortgages, to refinance into loans backed by the FHA, said the Journal, which cited a Credit Suisse spokeswoman.

The Journal said officials from JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research) are also pulling together their own proposal to expand the number of homeowners who could refinance into FHA-backed loans.

Spokespeople for Credit Suisse and JPMorgan were not immediately available.

http://www.reuters.com/article/ousiv/idUSN1440273120080214

- So now let's make certain that I have this right. The banks and investment companies created a highly risky loan product called a "subprime loan." Meaning that the borrowers of these loans aren't their "prime" customers, they're the "subprime" ones. But when the inherent risks of issuing these loans comes to fruition, and devastates their highly inflated investment portfolios and starts a domino-effect of crashing stock markets all over the world, pushing nation after nation into recession, for this they want what? To be rewarded?

They want the government (us) to give them welfare? No, not welfare. It couldn't be!!! They want us to give them money by taking over their bad loans in spite of their own admitted lousy investment practices and decisions that created them. And they want us to bail them out when they take high risks which in the past has made them billions. But this time it didn't. So they want us to pay for their folly? And what are we getting in return?

What happened to "personal responsibility?" I thought everyone had agreed that the market forces were better than getting the government all involved into business' business. You remember, "let the market determine winners," and such. Isn't that our thinking now? We're outsourcing our army's duties with companies like Blackwater. So what happens if they go bankrupt? Do we bail them out and pay for an army? We're outsourcing our prisons to Corrections Corporation of America. So who watches the inmates if the company can't meet its payroll? Do we pay their employees and them?

You can't have it both ways, can you? Either the markets are the be-all and the do-all and the end-all, with the answers to all of our troubles. Or, they're just like any other poor slob (like us lousy "regular" citizens), who have to take it on the chin when we make poor investment decisions. Anything else would be "socialism." And I know we don't like socialism anymore. Do we???

[annabanana]

1. Privatize the profit... Nationalize the risk.

same song different verse

[annabanana]

2. Whaddya want? The 'invisible hand of the market place" to

smack you upside the head?

[DeSwiss]

4. It looks like the 'ol....

..."Invisible Hand" was aiming for them, but we're the ones who get hit!!!

[Xipe Totec]

5. It's the invisible hand UP the market n/t

[DeSwiss]

9. Coming soon up ours....

[canoeist52]

3. 's like bailin' out our spendthrift teenagers!

Banks receiving corporate welfare.

[DeSwiss]

6. And isn't it strange....

...how this isn't part of the current debate among those running to become the leader of this debt-ridden country of ours.

- As an after-thought, I wonder how many presidential political ads are now resting in mailboxes which are sitting in front of empty foreclosed homes....

[thunder rising]

10. how many presidential political ads are now resting in mailboxes in front of foreclosed homes

It needed to be in a title line. A little paraphrasing to make it work :-)

[DeSwiss]

12. A good question to ask in the upcoming debate??? n/t

[scarletwoman]

21. Are you kidding? The Ruling Class doesn't want the proles to notice this!

No one is going to have the poor taste to bring such a thing up in public!

sw

[DeSwiss]

23. I hear ya....

...too bad we don't have a real press anymore.

[scarletwoman]

7. Hey, it worked for the S and Ls, why not for these guys?

The business of Government is Business. I thought we all understood this?

sw

[DeSwiss]

13. As I recall, those guys were crooks too....

...and no where near as many of them who went to jail.

- Including McLame....

[scarletwoman]

18. Don't forget, Neil Bush was WAY in the thick of it, too.

With some involvement of Jeb and Poppa Bush, as well. George W. was probably still too drunk to get in on that particular action, although I imagine he likely still saw some profit from it come his way.

sw

[DeSwiss]

22. Neil is who I had in mind....

...but I couldn't remember which Bush mutant it was.

- Thanks for the reminder...

[flashl]

8. Also read ....

The Mother of All Rip-offs: US Tax Payer to Bail Out Bankers From Default

[DeSwiss]

16. Thanks! n/t

[Bonhomme Richard]

11. I have two words for the Banking industry.

Fuck them.

[DeSwiss]

15. Same here....

...although there has been one minor positive effect of all this. I've seen a moderate reduction in my junk mail hawking credit cards and mortgage loans to me for which I've already been "pre-approved."

[ixion]

14. Republicans hate welfare, unless it applies to their business

and you can bet the ass clowns who came up with this idea are card-carrying members of the GOP. :grr:

[DeSwiss]

19. And which is precisely why....

...you won't hear any Repukes talking about this issue.

- And not so many Dems either....



on edit: spelling

[dysfunctional press]

17. well...the government DID de-regulate...it isn't the banks' fault-

they can't help it if they're greedy bastards.

[DeSwiss]

24. You know, this is true....

...we knew they were greedy from the start. Everyone knew they were greedy pigs. And so did they. Which is the reason for the de-regulation.

- Odd, how that worked out, eh?

[dysfunctional press]

26. if i leave the cat's food bowls out when i run errands...

and the dog eats the cat food in my absence- is it the dog's fault?

of course not- it's their nature.

same principle.

[kentuck]

20. It should have read:

Banks To Ask (The People) To Take Bad Loan Risk: Report

Because the "government" is not something that does not touch each and every one of our pockets.

[DeSwiss]

25. Oh they're good....

...at the double-talk, the obfuscation and the bullshitting.

- Its what makes American business so GREAT!!!