Homeowner "protection" Act written by Bank of America

[Rondaben]

Interesting article with a link to a confidential internal paper for Bank of America. Apparently they and affiliates have been very "friendly" with Chris Dodd, author of the bailout bill that was passed through congress.

I wonder if BoA has more concern for its interests or for yours?

Article HERE (http://latimesblogs.latimes.com/laland/2008/06/did-bank-of-ame.html)

[Vonne]

It's unfortunately not unheard of for corporations or lobbyist to unbeknownst by the general public, be the actual writers of bills.

Thankfully, all of our politicians have strong moral fibers, and it's not a concern that many of those on the housing committee... received special discounts on their own mortgages from the same banks they're regulating.

[Rondaben]

yeah, i feel better already knowing that the interests of the people are so well cared for.

[felixthecat]

Oh, that Chris Dodd, D.

Bank of America Drafted Dodd’s Housing Bailout Bill

The Washington Examiner has obtained a “confidential and proprietary” document produced by Bank of America and titled “FHA Housing Stabilization and Homeownership Retention Act of 2008.” The “Discussion Document” dated March 11, 2008, closely resembles the housing bailout bill drafted by Sen. Chris Dodd (D-Conn.) that the Senate is set to vote on within days. Senate staffers have told the Examiner’s Tim Carney, “the bailout section is exactly what Bank of America and Countrywide wanted. Its obvious they got what they asked for.”

Countrywide Financial is at the heart of the mortgage foreclosure crisis. It has $95 billion in loans on its books, many of the adjustable-rate-mortgage loans that have been defaulting at unprecedented rates. Countrywide has lost $2.5 billion in the last three quarters and had $6 billion in nonperforming assets on its book in the first quarter of 2008. Despite these red flags, Bank of America is proceeding to buy Countrywide for $4 billion. Analysts and stockholders have been highly critical of the deal since the beginning, wondering why Bank of America would be willing to take on such financial risk.

The bill about to be voted on by the Senate would allow banks like Bank of America to pick their riskiest loans and dump them on the Federal Housing Administration. In exchange for taking just a 10% cut on the value of the loan, the banks would receive cold hard cash from U.S. taxpayers. Their risk would be eliminated, entirely shifted to the FHA and the U.S. government. Passage of the bill would make Bank of America’s acquisition of Countrywide much more profitable.

(And guess where the government gets its money - FROM YOU!!)

...

http://blog.heritage.org/2008/06/20/bank-of-america-drafted-dodd-bailout-bill/

Here again:

LOAN SLEAZE SPREADS
2 SENATORS GOT 'EXEC PAL' DEALS

June 13, 2008 --

By DAREH GREGORIAN

SUBPRIME TIME: Democratic heavyweight Kent Conrad of North Dakota saved thousands thanks to "VIP" loans from a subprime mortgage lender that's under scrutiny.

The Democratic pals, Chris Dodd of Connecticut and Kent Conrad of North Dakota, both received the highly favorable loans under the designation "Friend of Angelo," a reference to embattled Countrywide head Angelo Mozilo, Condé Nast Portfolio reported.

Dodd is chairman of the Senate Banking Committee, while Conrad is chairman of the Budget Committee and a member of the Finance Committee. The two senators refinanced properties through the VIP program in 2003 and 2004, the report said.

(WOW! What an ironic coincidence. )

Others who received "FOA" loans include Alphonso Jackson, the secretary of Housing and Urban Development under President Bush who resigned in April, and Donna Shalala, who was secretary of Health and Human Services in the Clinton administration.

More here:

http://www.nypost.com/seven/06132008/news/nationalnews/loan_sleaze_spreads_115310.htm

Of course NONE of them knew anything about their getting VIP treatment and special loan deals. :rolleyes

Nah, it was just a pleasant suprise! :pound

[felixthecat]

Interesting article with a link to a confidential internal paper for Bank of America. Apparently they and affiliates have been very "friendly" with Chris Dodd, author of the bailout bill that was passed through congress.

I wonder if BoA has more concern for its interests or for yours?

Article HERE (http://latimesblogs.latimes.com/laland/2008/06/did-bank-of-ame.html)

His primary concern is to line his pocket and then have you pay the debt of others. This won't make the headlines and people will continue to vote for the same folks that were bought off. This is called political "compassion" at your expense!