Fannie Mae and Freddie Mac’s
regulator may identify as much as $30 billion of debt included
in mortgage bonds that the companies can force sellers to
repurchase, according to Joshua Rosner, an analyst who in 2007
predicted the collapse in the market for the securities.
Contents contributed and discussions participated by Kripansh Sharma
Fannie Subpoenas to Show $30B Bad Mortgages, Rosner Says - Bloomberg - 0 views
Sorry for risks, bad decisions, bankers tell Congress | Business | Chron.com - Houston ... - 2 views
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Americans are furious and “have a right to be” about the hefty bonuses banks paid out after getting billions of dollars in federal help
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The four bankers represent institutions that collectively received more than $90 billion in direct government assistance from the $700 billion federal bank bailout and availed themselves of billions from the Federal Reserve. Goldman Sachs received an additional $12.9 billion in bailout money that had gone to AIG.
Wells Fargo, Bank of America, 15 others hit for pay during crisis | New Mexico Business... - 1 views
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Wells Fargo & Co. and Bank of America Corp. were among 17 banks criticized Friday by U.S. pay czar Kenneth Feinberg for collectively paying out $1.6 billion in bonuses and other additional compensation to executives
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All the payments took place in the five months between September 2008, when bank bailouts began, and February 200
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The payments were not illegal but were “ill advised” and lacked a clear rationale, he said.
Backdoor Bailout - Furor Over Bofa's $2.8b Mortgage Settlement | LoanWorkout.org - 0 views
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Bank of America is getting blasted with accusations of a “backdoor bailout” for its $2.8 billion settlement with Fannie Mae and Freddie Mac over billions of bad mortgages.
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faulty mortgages the bank sold to the pair during the housing bubble.
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The outrage stems from BofA’s agreement to pay just $1.28 billion to Fannie and $1.52 billion to Freddie to resolve a dispute over loans purchased between 2005 and 2007 that the pair claims were improperly created.
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Kripansh Sharma
Sub prime mortgages are mortgages handed out to people with a terrible credit histories (usually below 600). also have a higher interest rate due to higher risks for lenders.
There are several different kinds of subprime mortgage structures available. The most common is the adjustable rate mortgage (ARM), which initially charges a fixed interest rate, and then convert to a floating rate based on an index such as LIBOR, plus a margin.
(http://www.investopedia.com/ask/answers/07/subprime-mortgage.asp)
What is Collateralized Debt Obligations (CDO)?
CDO is a financial instrument widely used to transform home mortgages into tradeable securities. CDO repackages individual loans into a product that can be sold in the secondary market. These packages consist of auto loans, credit card debt, or corporate debt. They are called collateralized because they have some type of collateral behind them.
(http://useconomy.about.com/od/glossary/g/CDOs.htm)
Countrywide Financial was a mortgage company. if was bought by Bank of America in 2008, due to massive debt under their belt that they couldn't pay back.
Merrill Lynch?
Merrill Lynch is a financial institution that was bought by Bank of America in 2008. Now along with Bank of America it is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services.
(http://www.ml.com/index.asp?id=7695_8134)