Posts Tagged ‘Freddie Mac’

According to Reuters, “JP Morgan Chase & Co CEO Jamie Dimon has pleaded with and complained to the U.S. Justice Department but cannot convince the government to end its criminal probe of his bank because prosecutors are not yet certain of their findings, people familiar with the matter said.” Perhaps that’s because Dimond’s neck deep up in crimes. A life time in prison isn’t exactly what anybody would want.

While the criminal investigations are still on going, Dimon has agreed to “the largest single-institution settlement arising from the financial crisis. Dimon’s JP Morgan Chase has agreed to pay $13 billion dollars. This is to resolve multiple investigations involving its mortgaged backed securities and other derivatives. The civil settlement appears to have no bearing on other ongoing criminal investigations of the bank.

While there has been no official release from the Department of Justice (DOJ) which negotiated the settlements or from JP Morgan itself, it is widely reported that the settlement includes $9 billion in fines and $4 billion in relief for consumers. Reuters is reporting that 80 percent of the settlement involves investigations of the mortgage business of Washington Mutual and Bear Stearns, which were both acquired by JPM. Others are reporting that the $4 billion in consumer relief arises out of claims from the Federal Housing Finance Agency that the bank sold improperly vetted mortgages to Freddie Mac and Fannie Mae, loans which eventually defaulted.

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The United States government is guaranteeing mortgage backed bonds purchased by China. Those are worthless bonds unless their value is assured by the US government. When did the United States government get involved in Wall Street’s casino? That most likely happened when the feds decided to rescue rich investors who’d made mistakes in purchasing the bonds.

When the housing market tanked, the bazillions of dollars of mortgage backed bonds held by the affluent plummeted in value to right around zero. The Federal Reserve purchased over a trillion dollars of these valueless bonds at face value, dollar for dollar. They saved foolish, hapless, stupid, but rich investors.

Apparently, the federal government now guarantees those bonds like they do student loans.

Click here to see the story as reported by Bloomberg News

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Freddie Mac Is Betting Against Homeowners

The folks at Freddie Mac are up to it again. I thought they were supposed to give out home loans to deserving borrowers, but apparently, the company has an investment arm. You won’t believe how many billions of dollars it has invested all over, but especially in things that want to keep homeowners buried under a mountain of debt.

Click here for the full story

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Ex-Fannie Mae and Freddie Mac bosses charged with fraud

click here for the complete story

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