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ZItat Kymmer:
WaMu: Guilty Only Of CRA Compliance, Editorial by Investors Business Daily:
Posted 03/18/2011 06:35 PM ET
Subprime Scandal: If the FDIC wants to be fair about suing Washington Mutual execs for "negligence," it should include politicians who supported the Community Reinvestment Act.
For that matter, it ought to include all the bank examiners — including its own — who enforced the reckless anti-discrimination regulation. The CRA pressured WaMu and other FDIC-insured banks to make the risky loans the FDIC now accuses them of "negligence" in allowing.
In its lawsuit, the agency says top WaMu officers acted with "reckless disregard" in adopting lending policies that caused the bank to make home loans "with little or no regard for borrowers' ability to repay them."
What gall.
The post-Clinton CRA ordered WaMu and other banks to adopt "flexible underwriting practices" and to target low-income borrowers in "predominantly minority neighborhoods." If they didn't pass the government's lending test, they couldn't expand.
So banks scrambled to originate subprime and other urban loans that would impress CRA regulators and the inner-city activists who influenced their decisions.
If anything, WaMu was guilty of overcompliance with the CRA — which is how it went from being an obscure Seattle lender to the country's sixth-largest bank. By passing its CRA exams with flying colors, it got government permission to buy dozens of other banks over the years.
For added insurance against the CRA's veto over its acquisitions, it pledged billions in loans to poor minority borrowers in deals with CRA shakedown groups, like the Greenlining Institute.
Ahead of its 2002 merger with Dime Bank, WaMu put up a whopping $375 billion in such commitments. "We have set our goal to double the number of loans made to borrowers of color by the end of the first year" of the 10-year deal, WaMu said in a press release.
Other major banks got caught up in the CRA racket. With WaMu, they pledged some $2 trillion in similarly risky mortgage commitments between 2001 and 2008.
WaMu, however, was the most eager to please. In 2003, it received the CRA Community Impact Award for its "flexible menu of loan products that can be personalized to meet the unique financial needs of customers, even when their loan may fall outside typical credit, income or debt constraints."
Of course, the dubious honor was bestowed before such risky loans collapsed with the subprime bubble, forcing WaMu into receivership.
www.investors.com/NewsAndAnalysis/Article/...RA-Compliance.htm
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Zitat fish:
If only.. God Willing we could have real press coverage along these lines.. "Figure the Odds!" But, whatever set of dice Sheila and crew were rolling to decide on bringing these lawsuits against the D&O of BOD of WAMU, they may have been loaded, but you know what they say about carrying a set of loaded dice around with ya?
"Only Stupid and Eventually Dead Men carry loaded dice!"
Keep that in mind as this plays out...
--------------------------------------------------Zitat s4systemsllc:
I must agree, the JPM / FDIC takeover of WaMu was one of the biggest IN THE OPEN CRIMES of all time. Nothing like being in bed with powers that be.
I won't go into too much detail, but JPM wanted WaMu for YEARS before this fiasco transpired.
Nothing like a little PANIC for the American people to let CRIME go unpunished. It happens all of the time in this "FREE" country.
MONEY can go unpunished.
Then to make matters worse, they gave the remaining banks OUR FREAKING TAX PAYER MONEY - and those *&$%#(*^%^ banks then proceeded to cut all credit, raise interest rates to 19.99% and not lend a damn dime of OUR money to small businesses effectively putting many OUT OF BUSINESS as well.
Jamie Dimon himself is a heartless and ruthless HATCHET man.
Nothing like a man who LEADS a major corporation putting everyone else out of jobs and then taking MULTIPLE MILLIONS FOR HIMSELF EVERY YEAR - Just sickening !!!
THE CRIME OF THE CENTURY - Plain and simple, those in politics are thieves and can't get honest jobs. CROOKS ONE AND ALL.
I'd like to see JPMorgan Chase go down in FLAMES.
Okay, I am done
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Zitat Fish:
Very Well Spoken.. S4 and Welcome, you have found the most educated and well-versed board on the internet that knows this scam from the inside to the outside. We have lived this for well over 2 years now and now the FDIC has finally over-stepped their covered bounds.
~Don~
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Zitat ILoveStocks:
Great Objection! Good job Axel Iverson
3/18/2011 6987 Objection of Axel Iverson to the Modified Disclosure Statement 1796 k
www.kccllc.net/documents/0812229/0812229110318000000000004.pdf
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Zitat SlyOne:
I am still amused that ppl forget that FuDIC still has WMI/WMB assets. And, no one questions what those are, their value?
Remember, this deal has not closed. Those assets should not be forgotten. They are part of the GSA, what are they? what are they worth?
Are they WMI or WMB assets that werent transfered to JPIG? Most likely where some missing dollars are hidden. Why? Because there has not been a audit of the FuDIC-receiver beyond the $1.88 billion plus interest.
(PCode: I have not received the latest info, Pls resend.)
This POS JMW is blind as a bat!
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They so deseparately want to keep TPG's hands tied. We are not fighting only for Q's holders- We are also fighting for TPG.
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Zitat ILoveStocks:
Slyone, we should get a good idea on Monday if any of the great objection has had any influence on JMW or if she has already been influenced.
She must look at many of these very descriptive objection that to all of us show a clear path of fraud by the Debtors. Monday should be a very interesting day.
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Zitat Fish:
I can't see how if we are fighting for TPG, that they do not hire counsel and enter this case to protect their investment. TPG and their investors will either use the tax loss or realize a difference in investment. Not sure what they actually want, because we have never heard from them in this case. Would it benefit TPG more if they ended up with a large stake in Reorganized WMI or the loss in investment for tax purposes?
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That is why you are seeing so many letters calling for a valuation of the entire estate, before an apporved transfer of wealth in the GSA. See the UIE Objection..
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I've used the Pdf Converter, that seemed to work. It was a trial version that only converted 3 pages... You had to purchase the full to convert the entire doc.
~Don~
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ZItat Large Green:
fsshon, I have no doubts TPG was paid off in another way such as "banks on the cheap" or in other dubious ways. The main action that TPG HAD to agree with is to say nothing, hear nothing and KNOW NOTHING. None of these criminals had any idea that equity COULD be in the money, even remotely!
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ZItat Fish:
Yes and since TPG was allowed to convert its Preferred interest into common interest on June 26, 2008 and then again in Sept 2008, there is speculation that Paulson kept WAMU off the no-short because TPG shorted them on Goldie Advice (Remember Goldie arranged the TPG deal). Then in Sept once they had full conversion to commons, they shorted the remainder of their shares until after seizure.. Then they covered at a very low price per PPS after seizure.
Speculation and way out of my knowledge range.
I don't know how to find out if this is true or not..
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ZItat Large Green :
Fsshon, I think you are MUCH closer to the truth than NOT and I agree! --------------------------------------------------
Zitat Large Green:
Delaware BOUND AND DOWN! I am leaving on 3/20 and arriving in Delaware around 2:00pm. Anybody else going?
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Zitat Large Green:
Fsshon, what are your thoughts for Monday? I feel if the Susman Team does not show anything related to a crime such as insider trading, then the D.S. will be approved. I am EXPECTING our team to show something VERY revealing (not all) as we cannot let that Judge get her pen even close to confirmation in May.
More than likely there will be a Chambers meeting before court and they agree on some things which IMHO would be very favorable to equity.I cannot believe the criminals will let financial information about a potential POR from Blackrock become open and public knowledge as the securities would skyrocket. I still look for some fireworks because the Judge cannot silence all of the Objectors or at least I hope not.
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Zitat Fish:
Susman Godfrey did not get to where they are by disclosing info before the trial, so I expect them to only disclose if it is necessary to stop injury. I do expect valuation to be put front and center and maybe a DS delay until Valuation is filed by a disinterested 3rd party accouting firm, it is obvious she may not approve Ernst and Young. She may have a problem with the no auditing or accouting of estate in 2 1/2 years and the disclosures by E&Y in their filing.
Man this case is so complex it is hard to read.
I do know the movie will blow the publics mind though.
~Don~
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ZItat Large Green:
Fsshon, you arec corret and I doubt the public would actually believe this happened as they will just say say another Hollywood great. I totally agree that Susman would only show what he has to. I feel this is at such a delicate time and place in this case, they have to make sure with enough evidence that this Judge is cornered and does not let this move forward.
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Zitat Desperado90:
GOOOOOOOOOOOOOOOOOOOO WAMMMMMMMMMMMMMUUUUUUUUUUUUUUU
Side, I disagree with you that the unworthy were the problem.
Every property has intrinsic value that cannot be equal to zero. A property has a fair value and market value.
The distortion between fair and market value were so skewed that speculators took advantage and inflated the values of the underlining asset. The loans were also designed to fail because the subprime loans were actually given to people with good credit determined to set them up for failure. Why would a bank give interest only loan or loans that balloon to 10-15% interest rate. I mean common. We are busy defending the same corporations that packaged these loans and sold them as Triple A quality investments to investors.
Even if a mortgage loan fails that does not erode the fair value of the timber, concrete and labor. The inflated market value is a different and untamed animal.
You need to understand that speculators really distorted the market and needed to feed the fire with machinations of loan types and over built on inventory causing a crash. Look at Nevada and see how much inventory of homes and tell me how the demand and supply principle can work. These actions drove home prices down and people started walking away from their mortgages instead of paying subprime 10% mortgages and devalued properties.
The so-called mortgage cannot become toxic if they maintain a true intrinsic value which cannot be tarnished.
GLTY.
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Zitat Fish dazu:
Very True Desp. I can buy a full house in Vegas now.. 2011.. For what I would have paid for the lot in 2006..
Lots in a subdivision I looked at were going for $90-$100k.. Houses that are there now in foreclosure, there are so many that I can buy one of the homes (cash) for 85-110K from Bank.
Go Figure.. Only Problem too much vacany in neighborhood means high crime rate and no police protection. Neighborhoods are ghost towns with very few lights on at night. Scary.. One would need to buy 40% of the subdivisions homes to bring value back to neighborhoood and realize a profit in 3 years. Renters would be the ones who brought neighborhood back up for the investor and therefore increases appraised property values.
Possible but not easy..
~Don~
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Zitat Large Green:
Will be landing in Delaware in two hours and getting ready to see the Susman Team, Blackhorse and others make Rosies hair plugs pop out!!!
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Zitatende
MfG.L:)
"Mit der Dummheit kämpfen Götter selbst vergebens"