This page has been archived and commenting is disabled.

Alan Grayson Demands Capital Buffer At TBTFs To Absorb Title Insurance Liabilities, Asks For New Stress Test

Tyler Durden's picture




 

When two weeks ago we highlighted the news that key title insurers such as Fidelity National are demanding indemnity and warranty from banks, we asked "what happens if the bank is once again caught to be, gulp, lying?
Who foots the bill then? Why the buyer of course. All this does is to
remove the liability from companies like Fidelity National and puts it
back to BofA, which is already so much underwater it has no chance of
really getting out without TARP, contrarian Goldman propaganda
notwithstanding." And while our speculation provided amusement to some of the more (vastly so) polemic elements in the blogosphere, it appears that Alan Grayson took this development seriously, and sent a letter to Geithner demand that a special capital buffer be established at the TBTFs, to absorb any and all losses that will arise from foreclosuregate (especially since earlier today it was made clear that certain banks such as First Horizon don't have any provision for putbacks). In Grayson's words: "Recently, Bank of America struck a deal with Fidelity National Title Insurance to indemnify the title insurer should legal problems with foreclosures create unanticipated title liability.  Title insurers are clearly worried that they may face higher legal and policy costs if foreclosures are reversed, or should legal ambiguity cloud titles they already have insured...Since title insurers have in some cases just refused to insure this market, someone must pay for the liability these insurers have refused to incur. Both banks and regulators are claiming that the problems are simply process-oriented document errors that aren't really causing harm to the public at large.  I suspect that no one really knows the extent of the problem, or the potential liability.With that in mind, it would seem prudent to require additional capital buffers for systemically significant institutions until the extent of the foreclosure fraud crisis is understood." We wholeheartedly agree with Grayson.

Full Grayson letter to Geithner and the Financial Stability Oversight counsel (pdf):

Dear Secretary Geithner and members of the Financial Stability Oversight Council,

I'm writing concerning the foreclosure fraud crisis and the resulting potential need for a special capital buffer for large systemically significant institutions.  I'm particularly worried about the title insurance market, and attempts to lay off title liability onto large banks without corresponding changes in capital requirements. 

Recently, Bank of America struck a deal with Fidelity National Title Insurance to indemnify the title insurer should legal problems with foreclosures create unanticipated title liability.  Title insurers are clearly worried that they may face higher legal and policy costs if foreclosures are reversed, or should legal ambiguity cloud titles they already have insured.  Bank of America's deal with Fidelity may be necessary to help keep the housing market functioning.  Since title insurers have in some cases just refused to insure this market, someone must pay for the liability these insurers have refused to incur.

The extent of this liability is unclear.  On October 8, Bank of America CEO Brian Moynihan told the public and investors that, despite the self-imposed foreclosure moratorium, his bank had not "found any foreclosure problems".  He said, explaining the foreclosure moratorium, that "[w]hat we're trying to do is clear the air and say we'll go back and check our work one more time." The bank's SEC Form 8-K reinforced these comments.  Yet two weeks later, the Wall Street Journal just reported that Bank of America, in reviewing 102,000 cases of problematic foreclosures, found problems "in 10 to 25 out of the first several hundred foreclosures it examined."

Both banks and regulators are claiming that the problems are simply process-oriented document errors that aren't really causing harm to the public at large.  I suspect that no one really knows the extent of the problem, or the potential liability.  What we do know is that title insurers are demanding indemnification.

With that in mind, it would seem prudent to require additional capital buffers for systemically significant institutions until the extent of the foreclosure fraud crisis is understood, or until title insurers decide that they no longer need indemnification for increased risk.  It may also be useful to conduct a new round of stress tests to determine the resilience of the financial system with respect to these serious problems.

Regards,

Alan Grayson
Member of Congress

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 11/02/2010 - 00:21 | 692445 Cistercian
Cistercian's picture

 Epic.Grayson is so right on this.....but how much money will be needed?

  I think a cubic mile should be enough.

Tue, 11/02/2010 - 01:11 | 692500 Bob
Bob's picture

How much remains to be seen, but we know enough to recognize that additional provisioning cannot be avoided . . . meaning that only companies allowing employees to sack corporate assets for private gain--at the risk of the very survival of the firms--will be paying out $144B in bonuses. 

Tue, 11/02/2010 - 06:55 | 692663 unwashedmass
unwashedmass's picture

 

the banks don't have to worry about alan....they will take him out today. i read somewhere more money has been spent against him than any other person in congress.

wonder where it came from?

duh.

Tue, 11/02/2010 - 07:33 | 692677 Xedus129
Xedus129's picture

Still has until Jan 1st 00:00

Tue, 11/02/2010 - 08:25 | 692734 Reggie Middleton
Reggie Middleton's picture

I have an idea. Let a disinterested party conduct the stress tests, from design on down to implementation and grading.

Tue, 11/02/2010 - 09:51 | 692936 A_MacLaren
A_MacLaren's picture

Hasn't Chris Whalen already done this?

What is his interest?  Selling quality information.

Already gathered and processed.

Tue, 11/02/2010 - 08:26 | 692735 Reggie Middleton
Reggie Middleton's picture

I have an idea. Let a disinterested party conduct the stress tests, from design on down to implementation and grading. I'd be happy to do it.

Tue, 11/02/2010 - 09:03 | 692819 OldTrooper
OldTrooper's picture

I'd like to see you get the job, Reggie.  At least I'd have some confidence in the results!

Tue, 11/02/2010 - 21:14 | 694814 Turd Ferguson
Turd Ferguson's picture

I hope somebody has the balls to pick up the torch on this issue.

Now let me say this: I SURE AM GLAD THAT THIS FUCKING ASSHOLE HAS BEEN DEFEATED AND WILL NOT BE RETURNING FOR ANOTHER TERM!!!

Tue, 11/02/2010 - 00:29 | 692454 Spirit Of Truth
Spirit Of Truth's picture

Pleeeeze....the banksters have long since overcome such trivialities as truth and the rule of law in their pursuit of $$$.  Why regress?

Tue, 11/02/2010 - 00:43 | 692470 Cheyenne
Cheyenne's picture

Respectfully disagree. The trenches in the foreclosuregate war are the courts, which are increasingly honing in on the central issue, namely, that foreclosing parties simply lack standing. As Judges Rakoff, Preska, and Boyko--just to name a few federal jurists--have demonstrated, the rule of law still has a pulse.

I'm all for Alan Grayson's efforts, as well as those of 50 state AG's, but in the end they are mere window-dressing. Keep your eye on the trenches.

Tue, 11/02/2010 - 00:36 | 692460 working class dog
working class dog's picture

I wish I could just say I don't want to cover this policy or hold up my end of a contract when, later discovery shows I didn't do my due diligence. I could just say too bad I'm not responsible.

What a bunch of pieces of shit. Remembering a Bush quote " We are a land of laws." The average US citizen will rise up when gas is 10.00 per gallon and they don't have money to pay the cable bill or buy food or heat or cool their house, let alone pay the taxes and mortgages. Thanks Govt officials and regulators for letting the people down your all pieced of shit. Now let me tell you how I really feel.

 

Tue, 11/02/2010 - 00:52 | 692482 Perseid.Rocks
Perseid.Rocks's picture

..sometimes you gotta break the laws to save the laws.. we're so far off the edge of the cliff that we're just hovering like wile coyote not realizing yet that the ground is gone.

Tue, 11/02/2010 - 00:46 | 692465 lynnybee
lynnybee's picture

deleted / computer malfunction

 

 

 

 

 

 

 

 

 

wish he'd team up with DYLAN & fix this mess !

 

 

 

 

 

Tue, 11/02/2010 - 00:42 | 692467 HarrisonBergeron
HarrisonBergeron's picture

The fact that we have seen only a few credible estimates of

possible put-back based losses is telling in itself.

One wonders if Grayson is daring Geither to make

a "subprime is contained" type comment and make even

the CNBC crowd see how little Geither understands.

Tue, 11/02/2010 - 00:48 | 692477 Perseid.Rocks
Perseid.Rocks's picture

This is nice.. create more funds to backstop more bad debts which resulted from fraudulent conveyance.. it just flows so nicely from one crisis to the next.. so where do the banks get the money to create these reserve funds, the taxpayer ? Undoubtedly.. they're on life support now due to Fed easing.

Tue, 11/02/2010 - 03:55 | 692590 jeff montanye
jeff montanye's picture

at what point do the bank stock and bond holders get wiped out?  as "capitalism" would have it done?  what a laughable sham of tears.

Tue, 11/02/2010 - 08:30 | 692743 Bob
Bob's picture

Does $144B budgeted for Wall Street bonuses ring a bell?

Tue, 11/02/2010 - 00:49 | 692480 williambanzai7
williambanzai7's picture

Any minute Bammy is going to get on the horn and tell Grayson to shut up and play Bammy ball.

Tue, 11/02/2010 - 04:02 | 692592 Bartanist
Bartanist's picture

Hopefully Grayson realizes that he has a future in politics and "Bammy" has none.

Tue, 11/02/2010 - 01:02 | 692495 lolmaster
lolmaster's picture

grayson is nothing but fed-alistic satan spawn

Tue, 11/02/2010 - 01:21 | 692511 Teaser
Teaser's picture

Alan Grayson better work fast because come January, he'll be looking for a new job.

Tue, 11/02/2010 - 01:24 | 692513 Eureka Springs
Eureka Springs's picture

Grayson is seemingly the only one in Congress trying to pierce this puss-filled criminal ponzi blister on all our houses.

Tue, 11/02/2010 - 03:59 | 692591 jeff montanye
jeff montanye's picture

and, as noted above, will be looking for work next year.  the resurgent republican party as the voice of the people.  what a great two party system we have.

Tue, 11/02/2010 - 07:40 | 692682 justbuygold
justbuygold's picture

Its hard to believe that one of the key guys who fought against all this corruption is about to get voted out.  What a shame !

Tue, 11/02/2010 - 13:27 | 693694 SRV - ES339
SRV - ES339's picture

Gotta give props to the GOP.

Use corporate funding to pin this mess (caused by corporate greed) on Obama, Pelosi, and Reid... and the good little soldiers (voting "the bums out") line up for the slaughter... another round of deregulation, rape, pillage, and bail-outs.

Hey, but let's look on the bright side... at least they can't put Palin in charge... yet.

 

Tue, 11/02/2010 - 08:57 | 692800 OldTrooper
OldTrooper's picture

Too bad he didn't concern himself with these matters until it was pretty clear he was in a tight race.  It's too late now.

Grayson is just positioning himself for 2012.  He points out obvious problems, suggests reasonable solutions, knowing full well that nothing will be done.  The problems will get worse and in two years he will rise from the ashes and point out that he 'had the answers' but didn't get elected.  If he wins he'll go back to being a minor player in acrimonious partisan politics and blame the Republicans for blocking everything.

Grayson is saying the things that need to be said - only because he's up against the wall.  Let's not assign too much virtue to desperation.

Tue, 11/02/2010 - 14:20 | 693878 SRV - ES339
SRV - ES339's picture

Seems you know very little about Mr Grayson... he is a very rich man who cares about what's happening to the little guy... he fights for them, and against the banksters responsible for this mess... I guess you just see the headlines on the theatrics.

He doesn't care if he loses his job... he'll get by.

Tue, 11/02/2010 - 01:42 | 692521 Paul Bogdanich
Paul Bogdanich's picture

Ladies and Gentlemen;

       I regret to inform you that tomorrow at midnight EST Tas Grayson is out of a job.  Anyone who dares speaks truth to the banks and chairman Bernanke (power) is assisinated.  So it is with Mr. Grayson.  I regret this deeply.  I gave for me what is a substantial amount of money to his campaign.  He had a fundraising of nearly 3:1 over his opponent and still lost.  Damn the citizens of Orlando.  May a curse descend upon them.  Let them rot in hell on Earth for this poor decision but this is the decision that they have made.  

Tue, 11/02/2010 - 06:52 | 692662 let x equal x
let x equal x's picture

Unfortunately, Grayson secured his political future not by actions such as this but rather by playing hyper-partisan politics, making utterly rediculous statements, and generally making an ass out of himself at every opportunity in front of a camera or microphone.  In other words, he blew it and has no one to blame but himself.

Tue, 11/02/2010 - 07:54 | 692689 unwashedmass
unwashedmass's picture

they aren't the brightest folks in orlando, plus you've got a serious sprinkling of old people...

people rove has sufficiently scared into line...

people who love sara palin.

that says it all.....

they live in disneyland...figuratively and literally.

Tue, 11/02/2010 - 07:55 | 692693 Xedus129
Xedus129's picture

Disney World *

Tue, 11/02/2010 - 01:52 | 692529 gs_runsthiscountry
gs_runsthiscountry's picture

The last sentence was the kicker. I spit up my dose of 1am coffee here.

"It may also be useful to conduct at new round of stress tests......."

How about we skip the stress tests and try resolution authority.

 

Tue, 11/02/2010 - 01:54 | 692530 litoralkey
litoralkey's picture

This is worthy of it's own thread on ZeroHedge, since it is relevant to FL-08 and Loonybin Grayson I'll post a link here:

http://hr.cch.com/news/uiss/110210a.asp

 

11/02/10
Florida adopts emergency rules regarding emergency unemployment compensation

Florida has adopted emergency rules as follows:

Eligibility for emergency unemployment compensation. Emergency unemployment compensation is available to individuals who have exhausted all rights to regular unemployment compensation on a Florida claim with a benefit year that ended on or after May 1, 2007; have no rights to unemployment compensation under any other state or federal law; are not receiving compensation with respect to a week under the unemployment compensation law of Canada; and are legally authorized to work in the United States.

In addition, the expiration of a qualifying benefit year during which the individual has earned sufficient wage credits to establish monetary eligibility for a new benefit year will not render the individual ineligible for emergency unemployment compensation if: 1. The individual has established entitlement to emergency unemployment compensation with respect to that qualifying benefit year; 2. The individual’s qualifying benefit year expired on or after July 23, 2010; 3. The individual has remaining entitlement to emergency unemployment compensation benefits with respect to that benefit year; and 4. The weekly benefit amount established under the new benefit year is at least either $100 or 25% less than the weekly benefit amount for the qualifying benefit year.

Emergency unemployment compensation individual accounts. Individuals found eligible will be paid from emergency unemployment compensation accounts established for each individual with respect to his or her benefit year. Tier One benefits may be paid only in cases in which an individual’s regular unemployment compensation benefits are exhausted by the week ending November 20, 2010. An individual who has a balance remaining in his or her individual account as of November 27, 2010, will continue to receive emergency unemployment compensation from such balance for any week beginning after that date for which he or she meets eligibility requirements, except that no compensation will be payable for any week beginning after April 30, 2011.

Definitions relating to extended benefits. “Good job prospects” means that an individual has a definite return to work date within four weeks of receiving an eligibility notice.

“Regular unemployment compensation” means benefits payable to an individual including benefits payable to federal civilian employees and to ex-servicemembers other than emergency unemployment compensation, trade readjustment allowance, disaster unemployment assistance and extended unemployment compensation.

Initiating a claim for extended benefits. The Agency will mail a Form AWI-UC310EB, Application for Extended Benefits (EB), to all individuals who exhaust their available emergency unemployment compensation. The form will advise the recipient that the application for extended benefits may be filed using the form itself or by applying online at http://www.floridajobs.org. When the individual is eligible for retroactive payment of extended benefits, the Agency will mail the claimant a Form AWI-UC310EBR, Information and Initial Claims Form for Retroactive Claims. The Form AWI-UC310EB or Form AWI-UC310EBR may be submitted by mailing the completed form to the Agency for Workforce Innovation, Unemployment Compensation Records Unit, P. O. Drawer 5700, Tallahassee, Florida 32314-5350, or by faxing the form to the Agency for Workforce Innovation, Unemployment Compensation Records Unit, (850) 922-0107.

Diligent work search requirements. Every two weeks, an individual determined to be eligible for extended benefits must report his or her work search activities. The individual may satisfy this requirement by reporting online at http://www.floridajobs.org/unemployment/EB/index.html and clicking on the “Claim Your Weeks” icon. The individual may also file his or her report on a Form AWI-UCB-60EB, Unemployment Compensation Benefit Weekly Claim Certification or a Form AWI-UCB-60EBR, Information and Initial Claims Form for Retroactive Claims, in the manner prescribed. The Agency mails the Form AWI-UCB-60EB and the Form AWI UCB-60EBR to the claimant for this purpose.

Tue, 11/02/2010 - 02:04 | 692535 Kreditanstalt
Kreditanstalt's picture

Obongocare.  Your hero Alan Grayson voted for it.

Tue, 11/02/2010 - 02:22 | 692546 Paul Bogdanich
Paul Bogdanich's picture

Eat rocks dickhead.  If Alan Grayson doesn't make a cotribution in your eyes who would?  Sarah Palin?  You're lower than whale shit.

Tue, 11/02/2010 - 07:44 | 692683 let x equal x
let x equal x's picture

Grayson's a buffoon and deserves to lose.

Tue, 11/02/2010 - 03:13 | 692570 halvord
halvord's picture

Why is everyone so fascinated about Obama's Pair?

Tue, 11/02/2010 - 04:04 | 692594 jeff montanye
jeff montanye's picture

cause he plays "wipeout" so well on them?

Tue, 11/02/2010 - 02:36 | 692545 bankonzhongguo
bankonzhongguo's picture

Private Mortgage Insurance - lender's mortgage insurance - $60 paid per $100,000 loaned?!  Where are the claims?

I am a little curious about this topic WRT the whole foreclosure deal.  I never hear about PMI covering any of the bank "losses" on defaulted mortgages.  For how many years were how many folks forced to pay into the PMI scam and now that there seems to be a Katrina like event - where did all those premiums go to and what got covered?  Who is the principal PMI underwriter - Buffet? It seems to me that the risk of defaulting could have covered a dose of all those originally under 20% of equity, but think of the decades of money spent down that rat hole and now nothing - only to have QE2 pay par for distressed securities that may in fact have been made whole by PMI claims.

Banks may be getting paid back 4-5 times over by; the borrower, the secondary market, the MBSx2-3, the PMI claim, the OREO and now comes the American taxpayer with the Fed's gun to our head.

Meanwhile, your kids are going to be eating cat food and inhaling DU in some far-away land.

Lets all make a plan. 

If you see anybody wearing a suit and tie by 2012 - shoot'em.

Any Corporate smart-ass bag-man on TV telling you everything is green shoots, well ...

 

 

Tue, 11/02/2010 - 02:40 | 692561 Misean
Misean's picture

PMI is mostly done for jumbo's and other mortgages that FHA can't do.  PMI covers a percentage of loss between the loan principle and the actual amount recovered in a foreclosure sale.  So, up until now, it was rare that there would even be a claim, let alone a substantial one.  Housing after all is real property, and for a long while, the purchaser had a good chunk of skin in the game.  Funny what happens when you throw tradition out the window, huh?

Tue, 11/02/2010 - 06:28 | 692647 Miles Kendig
Miles Kendig's picture

PMI is mostly done for jumbo's and other mortgages that FHA can't do.

I may be wrong here, but weren't the MI's really geared up to handle the push to home ownership by enabling Fanny & Freddie to do paper that had >80% LTV?  This is also the primary reason the MI's are essentially insolvent, or would be if they actually had to pay their claims.  MI is a shell game primarily used to keep the government money flowing into the RRE sector, and not just or probably mostly jumbos.

Tue, 11/02/2010 - 09:20 | 692849 tallystick
tallystick's picture

PMI is built into FHA loans.  All FHA loans pay PMI.

Tue, 11/02/2010 - 13:31 | 693703 Ripped Chunk
Ripped Chunk's picture

PMI is connected to low down payment and or low credit score loans. Saying all FHA loans have built in PMI is innacurate. Unless you are calling the backing of FHA by the USG PMI.

Tue, 11/02/2010 - 02:34 | 692556 Misean
Misean's picture

YESSS! More stressless tests! We need more studies and commisions and stuff!

Ummm...FASB, and the SEC say that this MUST be done, it must be documented why the reserves are there, and the ammounts must be a good faith estimate of losses. 

I got me an idear! Instead of more bureaucratic ass grabbing, someone just enforce the damned rules on the books?

Naw...

Tue, 11/02/2010 - 02:34 | 692557 Apocalypse Now
Apocalypse Now's picture

Well, now that halloween is passed I am assuming he can shave the Go-T Beard Hybrid.

Unless he is a San Francisco Giants fan, in which case he can now shave the Go-T Beard Hybrid.

Yes, I am sure that is his real hair color unless it is tar from the gulf hitting Orlando.

Tue, 11/02/2010 - 06:47 | 692659 saulysw
saulysw's picture

+1. He looks at present like he could start his own whacky religion, which may or may not involve some form of evil. The beardmo must go.

Tue, 11/02/2010 - 08:14 | 692717 VeloSpade
VeloSpade's picture

He grew the duster to vaccum up the "crumbs" in Barney Frank's crotch.

Tue, 11/02/2010 - 09:46 | 692925 doolittlegeorge
doolittlegeorge's picture

fear the beard!

Tue, 11/02/2010 - 11:55 | 693366 kinetik
kinetik's picture

I wonder how small that chin is under The Beard.

Tue, 11/02/2010 - 03:14 | 692571 halvord
halvord's picture

At least he has his natural skin color- as opposed to orange-boy Boehner.

Really, is he covering up jaundice with an even weirder color?

Tue, 11/02/2010 - 04:16 | 692597 jeff montanye
jeff montanye's picture

now, now.  remember: the two parties are a scam to keep the sheep from noticing the slaughterhouse. you both feel the passion of ideas but almost universally they don't; the thing they care about is if they win elections and get to pull the power levers, bag the hot stuff and then get rich as lobbyists, etc.  

Tue, 11/02/2010 - 09:11 | 692833 centerline
centerline's picture

+1.  Why else would some of these guys who already have millions of dollars pump thier own money into the game if they didn't think they would make it back somehow in the future?  Certainly not on salary of course.  It's all about power and influence.  Crony capitalism at it's finest.

Tue, 11/02/2010 - 04:44 | 692606 RedPacket
RedPacket's picture

Grayson's da man. You know he's doing the right thing when articles like this come out:-

http://www.newsweek.com/2010/10/24/america-s-worst-politician.html

 

Tue, 11/02/2010 - 09:08 | 692825 centerline
centerline's picture

got no love for any politician, but isn't Newsweek supposed to be news?  Like, isn't journalism supposed to be unbiased and truthful?  Maybe that is some op-ed piece, but it is delivered under the name of "news" which in itself if misleading.  Really, I would care if Webster or Grayson was the target... it is that the author HAS a target.  That is nothing but another attack ad.

Tue, 11/02/2010 - 05:11 | 692617 Tense INDIAN
Tense INDIAN's picture

why do some people dont like Grayson....his youtube videos have been very successfull in educating the people about the FED

Tue, 11/02/2010 - 06:18 | 692642 docj
docj's picture

Because though he's been spot-on for the most part about the financial mess and the Fed on literally every other issue (gubermint spending in general, BarryCare, etc.) he sucks eggs.

Tue, 11/02/2010 - 06:19 | 692640 Miles Kendig
Miles Kendig's picture

There will be some quick lame duck session, or early next term crap that will create a federally insured MI program rendering the issues discussed in the letter irrelevant.  Gotta keep the illusion of propriety going at all costs.  Plus there is the added benefit that the MI's open access to the docs would then be completely in house.  Much easier to control the variety of security implications that way.

And the party continues to roll.

Tue, 11/02/2010 - 08:33 | 692740 zhandax
zhandax's picture

Hey look, if asked my opinion on Taz and given a choice between genius and whack job,  I have to favor choice 2.  However, it appears certain he is at least not paid off by the banksters and is the only dickweed in the cesspool of US congress who is asking these questions.  I am willing to cut him some slack.  Anyone know if he is Pepe and Alfie's paid bitch?  If so, this run at the banksters is not some con job and he could well be back for another term.

Tue, 11/02/2010 - 08:30 | 692744 Chemba
Chemba's picture

Alan Grayson is a socialist moron, and will be unemployed as of 1-Jan.  What Alan Grayson has to say or think about anything is as important as a rat's fart.

Tue, 11/02/2010 - 08:40 | 692766 Vergeltung
Vergeltung's picture

yep.

Tue, 11/02/2010 - 08:39 | 692763 OldTrooper
OldTrooper's picture

Such a shame Grayson waited until last few weeks to start to 'care' about his constituents.

Tue, 11/02/2010 - 08:39 | 692764 Vergeltung
Vergeltung's picture

thankfully that marxist scum Grayson will only be around for another couple of months. See ya libtard!!

Tue, 11/02/2010 - 09:03 | 692812 centerline
centerline's picture

Grayson sees the writing on the wall folks.  But, like any other politician, can't do much about it without commiting political suicide.  They system is captured.  Both parties are captured.  Grayson's letters, to me, are like "told you so" documents to be revisited at some point later on.  Cards to be played later.

 

Effectively, this whole foreclosuregate thing has brought to the attention of the banks, Fed and administration that in fact there is armed financial nuke in the room.  It is most likely going to detonate - and far too complex to be disarmed.  So, what is left to do... buy time of course!  Try to build something to contain the blast - absorb it's energy - or even lessen the energy of the blast or direct the blast.

Tue, 11/02/2010 - 09:14 | 692838 crzyhun
crzyhun's picture

Gray so n Good riddance!! Nihilist muckraker.

Tue, 11/02/2010 - 09:52 | 692939 doolittlegeorge
doolittlegeorge's picture

actually the "facts of the case" are brutally simple, stated in the article and not presented correctly in the comment section: "these are just processing issues." End of story. "Civil Rights" issues are messy and, ultimately, never really resolved. We're talking actual property here of course and unfortunately not "real discrimination." Hence..."the banks will be the owners." How else will the banks themselves be able to continue to borrow so THEY can meet payroll? Needless to say "no one asks who pays the taxes." That's because "no one does."

Tue, 11/02/2010 - 11:02 | 693167 Gimp
Gimp's picture

Love the picture of Grayson - "El Diablo"

Grayson will probably not get re-elected but I give him credit for trying to pierce the Fed,TBTF and their cronies on Capitol Hill. Crooks never like to be exposed.

Tue, 11/02/2010 - 12:23 | 693455 MachoMan
MachoMan's picture

Grayson,

Please explain how banks are going to set aside any additional reserves when they cannot pay the basic FDIC premiums?  Exactly where do you propose this buffer comes from and, if a federal source, please explain the consequence to our credit with other nations, tax levels, debt ceiling, and future generations.

In short, please quit grandstanding for issues with no solution, it makes you look cheap (fletch).  If you are indeed sincere about the issue, then please just call for the end of the TBTF (and the dollar) instead of a mickeymouse, roundabout, plan.  Thank you.

Your pal,

Mario Poffo 

Thu, 11/04/2010 - 02:17 | 698628 cheap uggs for sale
cheap uggs for sale's picture
Many like to prefer this footwear for cheap uggs on sale. its stylish and comfort aspects that charms as well as eases your feet with utmost convenience. Earlier, people use to wear cheap uggs bootsto keep their feet warm in cold weather but now in modern time people prefer them to gain a great appearance.UGGS on sale.Such as:UGG Adirondack|UGG Bailey Button Triplet|UGG Brookfield|UGG Cardy|UGG Delaine|UGG Elsey|UGG Gissella|UGG Highkoo|UGG Kensington|UGG Knightsbridge|UGG Langley|UGG Mayfaire|UGG Roseberry|UGG Roxy|UGG Upside| UGG Amberlee| UGG Oliviya| UGG Gaviota|UGG Desoto|UGG Bailey Button |UGG Brookfield short|UGG Swell .
Fri, 11/05/2010 - 23:33 | 704609 cheap uggs for sale
cheap uggs for sale's picture

Welcome to our website-- http://www.ugghots.com , we are making the promotion for many uggs now.Here is a chance for you that you want to buy good ugg classic boots by cheap price.At present our hot sale snow boots has :
| UGG Delaine Boots
| UGG Gaviota Boots
| UGG Gissella Boots
| UGG Evera Shoes
| UGG Upside Boots

Do NOT follow this link or you will be banned from the site!