What if a I told you a story about a corrupt politician that was bought off by multiple corrupt banks in order to procure a quid pro quo that was presented as a life saver to struggling homeowners but was in fact a payback in order to turn a merger into a financial boon. Furthermore, what if I told you that this corrupt politician was selling out his country's tax payers to the tune of $300 billion. I bet you would say that this would be shocking and every media would be looking to uncover the next detail of the scandal. I bet you would say this politician's colleagues would be outraged and looking for blood. I bet you would say this was the beginnings of a political thriller and everyone in the country would be engaged.
Of course, you would be wrong. Last night the Senate OVERWHELMINGLY passed the Dodd/Frank mortgage bailout plan. This bill is not merely corrupt. The corruption is obscene not only in its brazenness but in its scope. Furthermore, what is really troublesome is that the culture of corruption in D.C. is so engrained that politicians on both sides either didn't know it is corrupt or simply didn't care. This bill passed overwhelmingly 63-5. What's more is that the obscene levels of corruption are a matter of public record. All one needs to do to know this bill is corrupt is be adept at Google or their favorite search engine.
Chris Dodd is head of the Senate Banking Committee. Recently, we found out that multiple times he received special rates from trouble mortgage lender Countrywide. Then, we found out that Dodd has been receiving campaign contributions averaging $1000 weekly from Bank of America.. Then, we all found out the clincher. Bank of America was responsible for drafting portions of the corrupt Dodd/Frank bill.
So, what is Bank of America's interest in the bill? Bank of America bought out Countrywide in January of this year. Countrywide's stock price had been terribly depressed because they were heavily weighted in non performing sub prime and option arm loans. This deal was extremely risky for Bank of America because they were also accepting this non performing paper. That's where the Dodd/Frank bill comes in. This bill provides $300 billion so that the federal government buys all this non performing paper from banks like Countrywide. This bill turns a risky transaction into a hundred billion dollar financial boondoggle for Bank of America.
In other words, for providing a reduced rate on couple hundred thousand dollar loans and just under $200,000 in campaign contributions, Bank of America received a corrupt bill that would remove somewhere in the neighborhood of $100 billion dollars of bad loans from their portfolios. That's a stunning return on corrupt investment.
What's really stunning is that every major media is presenting this bill as merely a bailout for struggling borrowers. You won't find anyone in the MSM point out each of these crucial details in discussing the passage of this bill through the Senate yesterday.
Why not? Is a corrupt $300 billion bill not big enough? Is there no story when two corrupt banks buy off a corrupt politician so that their merger becomes a financial boon? The media was certainly scintilated when the Jack Abramoff story broke? Did any of his malfeasance ever reach this level? Duke Cunningham was a major story and yet his corruption was peanuts compared this $300 BILLION CORRUPTION. What exactly will it take for the media to notice that tax payers are footing the bill in order to turn a risky merger into a financial boondoggle? After all it only took me four google searches to confirm everything I just said. Does the media not know how to use Google? How much longer will they continue to refer to this bill as a bailout for struggling borrowers?
This is no bailout for struggling borrowers. That's just what the corruptors have presented in order to make this bill presentable. This is the last piece of an elaborate quid pro quo that began nearly two years ago. All of these troubled loans that no one wants are now going to be owned by the public, through FHA. That means borrowers with no hope of ever being responsible enough to pay them back will now have the federal government as their creditor. Chris Dodd got a a couple of good loans and $1000 a week in campaign contributions for about a year and a half. Meanwhile Bank of America removes billions worth of bad loans from their books, solves their liquidity crisis, and thus gets flush with cash, government cash. No one seems to care.
For an updated summary including the backstory and context of how we got here with this corrupt bill please go to this link.
Please check out my new books, "Bullied to Death: Chris Mackney's Kafkaesque Divorce and Sandra Grazzini-Rucki and the World's Last Custody Trial"
Saturday, July 12, 2008
Corrupt Dodd/Frank Passes the Senate...The Media Yawns
Posted by mike volpe at 6:56 AM
Labels: bank of america, chris dodd, countrywide, mortgage
Subscribe to: Post Comments (Atom)
Post a Comment