Yesterday Bank Of America settled numerous MBS push back claims with both Fannie and Freddie.
The travesty of the settlement has been my on going complaint that every single government program to help homeowners is really a back door bailout for the banks. The GSE's are front and center a continuous backdoor bailout mechanism for Wall Street's absurd toxic pipeline machine that fed the credit beast for the past 15 years.
http://noir.bloomberg.com/apps/news?pid=conewsstory&tkr=BAC:US&sid=aRboobH0Ekv4
What the settlement did for BOFA is basically settle all future claims from Freddie Mac for $1.28B. This settlement will cover some $127B in loans that Countrywide made and packaged to Freddie. Do the math. This comes out to exactly 1 penny on the dollar. Freddie Mac should be ashamed of themselves over this tax payer heist.
Fannie Mae settled for $1.52, but BOFA still has liability for future claims. What this shows is that Wall Street along with the government is 100% firmly entrenched in a permanent bailout mechanism with the tax payer as the sucker.
What do we have to look forward to with a GOP Congress in 2011? More of the same as Congressional Republicans are looking to roll back many parts of Dodd-Frank as inhumanly possible. Dodd-Frank was a joke to begin with, rolling it back only brings us back to the days of handing out mortgages to parrots and pets. Why not? When the sucker tax payer is on the hook.
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