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The Great Highway Robbery Continues: How The FDIC Is Legally Transferring Billions In Taxpayer Money To Hedge Funds

Tyler Durden's picture




 

It is not a secret to anyone who has been closely following the FDIC's quasi criminal bank takeover practices over the past year, that acquirors of failed banks end up receiving a massive and risk-free gift in the form of taxpayer benefits via the FDIC when it comes to funding losses on a given bank acquisition. Should there be a short sale resulting in a loss to the full principal (not the cost basis mind you)? Not to worry, Sheila Bair is there to hand out taxpayer money to the hedge funds/banks owning the newly transferred assets. A recent example of this was the glaring insider trading which preceded the acquisition of failed AmTrust Bank by New York Community Bancorp, in which both NYB and those who bought calls in advance of information being made public, made massive illegal profits. And as the SEC continues to pretend like this episode never happened, we remind the intellectually subprime Mary Schapiro to finally pursue those involved, and will continue doing so for as long as it takes. But back to the FDIC: the folks at Think Big Work Small have compiled a terrific video detailing exactly how several hedge funds, currently owners of recently created shell holding company OneWest Bank, are picking apart the carcass of failed IndyMac, all the while encouraging short sales (instead of loan mods) as only that way do they get to benefit fully from the taxpayer funded FDIC loss-share arrangements which makes the IndyMac transaction an immediate slam dunk for everyone involved...except America's taxpayers, and the FDIC's ever depleting DIF reserve.

As the authors appropriately title the video, this is indeed a slap in our face. And this goes on every single bailout Friday when the FDIC continues handing out billions of dollars under the guise of "loss sharing" arrangements, which is simply a guaranteed profit from the acquirors' cost basis to 90% of the original loan value: an instantaneous 30% risk free IRR.

Full must watch video after the link (click on the icon below).

 

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Wed, 02/10/2010 - 15:31 | 225277 WaterWings
WaterWings's picture

Hopefully the homeowners didn't spend any of their HELOC on imported stuff! The video didn't mention that the IRS is going to want their cut of your newly found "income" after debt forgiveness and cancellation. I'm not in the industry, but I think this is one hell of a Charlie Foxtrot for the crumbling nation called America.

http://www.irs.gov/irs/article/0,,id=179073,00.html

I predict 300+ comments on this one. If wrong I still have my GOLD BITCHES!!!

Wed, 02/10/2010 - 16:04 | 225392 ZerOhead
ZerOhead's picture

Well somebody has to pay... and the little guy never bought politicial and regulatory insurance like the TBTF's and friends. Hey that could be a new financial product... Regulatory Default Swaps!

Wed, 02/10/2010 - 16:13 | 225408 Careless Whisper
Careless Whisper's picture

those "savvy" bankers are at it again.

Thu, 02/25/2010 - 22:25 | 246156 Anonymous
Anonymous's picture

bs the bankers are not doing anything this is just the government hard at work propping up the malinvestments they created making them worse and sending in their "regulators" in to further mess up thigns with their regulators fact is the left wing terrorist network set off a bomb just like in 1919 in wall street bolsheivick style this time inside the banks themselves after creating them through the gov forcing them to make bad loans "roiding" up "affirmative action" banking style and forcing banks small medium and large to give to people who would not pay them back to meet their illegal alien black and democrap occupied "urban" hellholes "investments" shakedowns its was Jesse Jackass Jackson and mad large insane scale and we are scarewed because of it scaaaa..rewed because of it. OH yea nd the Fed funded it with inflation throught the "treasury" and the fha/freddie/fannie. Nice scheme their Clintoon. The alinksyites who gave Arkansas Whitewater gaves us the entire "90's".

Wed, 02/10/2010 - 18:04 | 225645 velobabe
velobabe's picture

it's a start folks. credit card revolt. print out flyers on this site and paste on banks windows and ATMs. the site has some bucks behind them cause they have national tv ads on, that are pretty hilarous.

 

http://www.creditcardrevolt.com/Site_1/unite.html

Wed, 02/10/2010 - 19:23 | 225780 Zippyin Annapolis
Zippyin Annapolis's picture

The IRS went after "debt forgiveness" during the S and L bailout and the "investors" who were promised debt forgiveness and forebearance took the government to court--all the way to the Supreme Court--and won--sooo I think they have their butts covered on this one.

Wed, 02/10/2010 - 19:28 | 225790 albion402
albion402's picture

The fellas at ThinkBigWorkSmall.com really have nailed several of the major screw-ups in the mortgage business.   Normally, a bit of humorous and biting sarcasm...not the serious stuff found here.... /sarc     :)

Wed, 02/10/2010 - 15:10 | 225296 Fidel Sarcastro
Fidel Sarcastro's picture

FREE money to the banksters?  What else is new?

Thu, 02/25/2010 - 22:27 | 246159 Anonymous
Anonymous's picture

There is no such thing as free money and they are not "banksters" they low men on totem pole basically IC of GOVERNMENT policy and Fed res/New Deal controls designed to make everything worse and blame it on "capitalism" Fascism were the state fucks over business controls it and has it eat out of its hand bark when it is told to park and then blames it for what it trained and wants it to do.

Wed, 02/10/2010 - 15:16 | 225305 Daedal
Daedal's picture

Meanwhile, this clown (http://www.bloomberg.com/apps/news?pid=20601087&sid=aKGZkktzkAlA) thinks that Blankfein's bonus is a result of 'free market'.

Wed, 02/10/2010 - 15:49 | 225360 Anonymous
Anonymous's picture

Of course there's that sticky detail that athletes don't get their millions by fleecing trillions from taxpayers! How can so much stupidity fit in one head? I think Seagate or WesternDigital should study such compression techniques.

Wed, 02/10/2010 - 18:47 | 225721 JuicyTheAnimal
JuicyTheAnimal's picture

Panty-waste-ass-clown to be more specific. 

Wed, 02/10/2010 - 15:16 | 225307 gold_tracker
gold_tracker's picture

That's bloody maddening! 

Wed, 02/10/2010 - 15:16 | 225310 HelluvaEngineer
HelluvaEngineer's picture

Saw this one a couple of days ago.  I didn't forward it on at the time but think I should.  Most regular people (including me) can understand that this is blatant robbery.

Wed, 02/10/2010 - 15:31 | 225332 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

well ordinary sir, Steve Keen is asking engineers to become economists...please consider ;)

Wed, 02/10/2010 - 15:35 | 225337 HelluvaEngineer
HelluvaEngineer's picture

It would be telling if engineers got involved in economics and it became less complicated.

Wed, 02/10/2010 - 16:18 | 225425 Anonymous
Anonymous's picture

weeelll, the financial engineers
did become involved in finance
and it became not only more
complicated but much less
stable...i don't have any more
optimism for economics....

if you want to understand economics
study murray rothbard...

Wed, 02/10/2010 - 18:23 | 225684 Anonymous
Anonymous's picture

The relationship between engineers and financial engineers is sort of like the relationship between cowboys and unicorn cowboys.

Thu, 02/11/2010 - 12:11 | 226732 Anonymous
Anonymous's picture

Actually, the investment banks were hiring engineers, mathematicians, and physicists the past 10 years.

Fri, 02/12/2010 - 10:16 | 228303 Anonymous
Anonymous's picture

I seriously doubt that. Mathematicans yes, but the rest, no.

Fri, 02/12/2010 - 15:18 | 228873 WaterWings
WaterWings's picture

Mostly because a politician would request that they suspend their knowledge of physics - which is why these engineers should be given the authority to shoot any elected official that suggests the suspension of physics.

Wed, 02/10/2010 - 15:16 | 225311 chindit13
chindit13's picture

In America everyone is equal under the law.  Unfortunately, some are above the law.

Wed, 02/10/2010 - 16:34 | 225473 Kitler
Kitler's picture

So we pass a new law making everyone 'above the law'.

We would save billions and create millions of new (formerly criminal) jobs!

Wed, 02/10/2010 - 15:18 | 225315 ghostfaceinvestah
ghostfaceinvestah's picture

Don't think this is the only underhanded deal the FDIC has done, check out the deal that Colony Capital struck with them.  This was a sweet deal (not for the taxpayer).

http://bailoutsleuth.com/10/01/498/colony-capital-acquisitions-llc-was/

Wed, 02/10/2010 - 15:20 | 225316 Cognitive Dissonance
Cognitive Dissonance's picture

This Ponzi is limited only by the creativity and brazen criminality (legal or otherwise) of the perpetrators, which includes any past or future beneficiaries. This is an important point because when the looting begins, many wannabes on the side lines are sure to be recruited (or self recruit) in an effort to pick up some loose change along the way.

Is it any wonder that psychopaths are running the joint? After all, that personality type is perfect for this type of "work" so who would possibly join the band of thieves if they still retained any moral character or empathy for the unwashed masses, also know as the tax paying sheep? 

Wed, 02/10/2010 - 16:56 | 225518 Kitler
Kitler's picture

'When the looting begins' ?  Ha ha ha!!!

Remember... psychopaths have almost always run everything. A conscience would just get in the way of achieving the former goal.

Come join the Wolfpack and dine on mutton.

Wed, 02/10/2010 - 17:26 | 225572 ghostfaceinvestah
ghostfaceinvestah's picture

I think sociopaths would be a more accurate description, but point well taken.

Wed, 02/10/2010 - 20:56 | 225965 Hephasteus
Hephasteus's picture

Sociopathy is just psychopathy when it joins a large group or gets involved in politcs or banking or corporate culture or religion, etc etc. Once a psyschopath is able to get a couple people to fulfill it's needs they like to try to get more and more people involved cause it's a challenge.

Thu, 02/11/2010 - 06:59 | 226420 Cognitive Dissonance
Cognitive Dissonance's picture

sociopath [(soh-see-uh-path, soh-shee-uh-path)]

Someone whose social behavior is extremely abnormal. Sociopaths are interested only in their personal needs and desires, without concern for the effects of their behavior on others. (Compare psychopath.)

 

psychopath [(seye-kuh-path)]
A mentally unbalanced person who is inclined toward antisocial and criminal behavior. (Compare sociopath.)

Wed, 02/10/2010 - 15:21 | 225317 Gubbmint Cheese
Gubbmint Cheese's picture

It's time - where's Howard?

 

"I'm mad as hell.. and I'm not going to take it anymore!!"

It was on TV last night - oh the irony.

 

 

Wed, 02/10/2010 - 15:22 | 225318 Anonymous
Anonymous's picture

May the sheeple learn from this. Do not buy a house. Rent.

Wed, 02/10/2010 - 15:23 | 225319 Postal
Postal's picture

"...intellectually subprime..." Ha! My favorite phrase on ZH.

Wed, 02/10/2010 - 15:56 | 225370 Anonymous
Anonymous's picture

Yes, high praise indeed!

Are you sure she will be able to live upto this standard?

I'm sure she's being compensated handsomely to allow the plunder to continue, and why not, after all it ain't her money.

Although I think intellectually subprime is a bit over the top, I prefer, "intellectually vacuous"

From the dictionary:

vacuous??/?vækyu?s/ [vak-yoo-uhs]
–adjective
1. without contents; empty: the vacuous SEC.
2. lacking in ideas or intelligence: a vacuous mind, M. Shapiro to a tee.
3. expressing or characterized by a lack of ideas or intelligence; inane; stupid: a vacuous career, M. Shapiro again.
4. purposeless; idle: a vacuous regulatory agency.

Wed, 02/10/2010 - 16:20 | 225429 Anonymous
Anonymous's picture

subprimeness applies not only to her
intellect but to her morals as
well....she is the uber money
whore....hope she dies soon...

Wed, 02/10/2010 - 15:24 | 225320 Eally Ucked
Eally Ucked's picture

We are witnessing last stage of decay, everybody knows the system is dead so they trying to get as much as possible before everything goes down in smoke. Do you remember "Zorba the Greek" and the scene when everybody just waits to loot after official funeral celebrations are finished?

Wed, 02/10/2010 - 16:00 | 225376 debt.crisis (not verified)
debt.crisis's picture

Money doesn’t grow on trees for most of America. We sit down at our kitchen tables and write out checks to the phone-company, electric company, credit card-company, mortgage-company, and auto finance company every month.  We clip coupons and go to the grocery store every week to put food in the mouths of our children. This is what our parents did before us.
good articles: http://www.iamned.com

Wed, 02/10/2010 - 16:23 | 225442 Anonymous
Anonymous's picture

but you are just the little people
for whom the wealthy hold contempt

http://www.youtube.com/watch?v=iSii-xWoyKM

watch the arron russo interviews
and his comments on his ex-good bud
nick rockefeller...

let them eat cake is too good the
little people...

Thu, 02/11/2010 - 03:11 | 226357 Anonymous
Anonymous's picture

Oh no, it's that "i am ned" crapola again. I thought we had seen the last of you. Please be gone with your BS posts, quite vacuous in themselves, just trying to get people to go to your site!

Wed, 02/10/2010 - 15:25 | 225323 Anonymous
Anonymous's picture

I suggest Zero Hedge become a virtual SEC. Report findings (like the above) here, then we'll use the virtual jury (comments section) to set a $ fine, consequences, and/or punishment for the accused (assuming they are found guilty).

While there may be no enforcement of this, eventually the mass media will look to Zero Hedge instead of the SEC as the justice seekers of our financial markets.

Wed, 02/10/2010 - 15:25 | 225324 buzzsaw99
buzzsaw99's picture

Carlito:  What, you think you like me? You ain't like me motherfucker, you a punk. I've been with made people, connected people. Who've you been with? Chain snatching, jive-ass, maricon motherfuckers. Why don't you get out of here and go snatch a purse.

Wed, 02/10/2010 - 15:29 | 225327 Anonymous
Anonymous's picture

Yeah... I'll agree that Sheila Bair is an idiot. She's closing perfectly good banks, transfering nice assets at prices that are WAY too marked down. And there is nice upside for those of us playing in financials risk.

(Act, it was an easy trade to front-run on the way down too!)

The YO-YO of M-T-M is just a windfall for saavy speculators.

-BBH

Wed, 02/10/2010 - 15:35 | 225329 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

One of many ways banksters steal money.  Housing de jour.

Housing prices have two more legs down, btw.  Great depression numbers in 2 years.

Wed, 02/10/2010 - 15:30 | 225330 Hephasteus
Hephasteus's picture

Does anyone know of a weapon that kills people and is not humane and assures you of the person being in tremendous pain the whole time they are dying? That's going to be a HUGE market.

Wed, 02/10/2010 - 15:39 | 225345 H.W. Plainview
H.W. Plainview's picture

It's called a crucifix.

 

"I am an oil man"

Wed, 02/10/2010 - 15:48 | 225358 WaterWings
WaterWings's picture

I was about to say that we'll probably see medieval torture come back in a big way.

Although a 9mm to the gut would work, too.

Wed, 02/10/2010 - 16:24 | 225445 Anonymous
Anonymous's picture

subprime schapiro deserves a 50
caliber machine gun to the gut...

Thu, 02/11/2010 - 03:26 | 226365 Anonymous
Anonymous's picture

50 BMG is far too humane.
Call me a traditionalist, but I prefer tar and feathers.

Wed, 02/10/2010 - 15:49 | 225359 HelluvaEngineer
HelluvaEngineer's picture

tire + gasoline

Wed, 02/10/2010 - 16:01 | 225383 debt.crisis (not verified)
Wed, 02/10/2010 - 16:13 | 225407 HelluvaEngineer
HelluvaEngineer's picture

I think we have our first volunteer!

Wed, 02/10/2010 - 16:03 | 225389 Anonymous
Anonymous's picture

#1 Birdshot, Kent Tungsten Matrix

- Heretic

Wed, 02/10/2010 - 16:14 | 225414 carbonmutant
carbonmutant's picture

First we need them to name names...

Wed, 02/10/2010 - 16:38 | 225483 Bam_Man
Bam_Man's picture

I believe the best method is called "being broken on the wheel".

Wed, 02/10/2010 - 16:47 | 225515 faustian bargain
faustian bargain's picture

hanging, drawing and quartering is pretty good. and then you can gibbet the pieces.

Wed, 02/10/2010 - 17:58 | 225628 Hephasteus
Hephasteus's picture

I get the feeling you would all be sweeter kinder people if you weren't be fucked by a global scamming fucking machine.

Wed, 02/10/2010 - 18:42 | 225716 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The banksters should have to go on Dr Phil once a week.  He can advise them on how to be better assholes.  The countrywide ridicule should be enough for a few months.  Then we will tar and feather them anyway.

Most importantly we can not let them leave the country.  So electric shock bracelets are in order.  I heard a purchase of 500 comes with 1,000 Dow Jones 10,000 3.0 hats!

Wed, 02/10/2010 - 21:22 | 226003 velobabe
velobabe's picture

mandatory pulic transportation, asking during the whole ride if the bus stops before the mexican border.

Wed, 02/10/2010 - 19:35 | 225798 DaveyJones
DaveyJones's picture

I guess we're angry. How about fast growing bamboo?

Wed, 02/10/2010 - 15:35 | 225338 deadhead
deadhead's picture

Thank you Tyler.

1. appreciate the constant reminder to the wall street shill and bernie madoff buddy, Mary Schapiro, about getting off her ass to investigate the NY Community Bank fiasco.

2. is this the same FDIC that allowed banks a capital requirement delay of one and one half years in regards the FASB 166/167 requirement that off balance sheet items (aka the Grand Cayman tsunami of fecal matter) be returned as of the current quarter?

3. is this the same FDIC whose inability to shut down approx. 600 or so banks (not including the blessed group of 19) cost US taxpayers additional funds everyday as losses mount?

 

Wed, 02/10/2010 - 17:30 | 225574 ghostfaceinvestah
ghostfaceinvestah's picture

Good point about the insolvent banks being allowed to fester.

Not only do they gamble and rack up more losses, they take deposit money away from healthy banks, weakening the entire system.

We are a nation in decline, and nothing short of a miracle will help us now, and I an't expecting no miracles.

Wed, 02/10/2010 - 15:44 | 225350 dark pools of soros
dark pools of soros's picture

what's the problem? these people are total saints!!  they stopped kicking people out for a full two weeks during the holidays!!!

 

https://www.owb.com/uploadedFiles/Footer/pr_20091218b_morat.pdf

 

and they are in a loss-sharing agreement with the FDIC!! (no mention of gain-sharing though...)

http://finance.yahoo.com/news/OneWest-Bank-Announces-bw-1405908810.html?...

 

and hey - just catcha wave.. they are just destroying everyone 'One person at a time'

https://www.owb.com/




Wed, 02/10/2010 - 15:44 | 225351 Anonymous
Anonymous's picture

Credit where credit is due. Tyler, I hope you will give credit to the poster on your site yesterday who posted this video in the comments section.

Wed, 02/10/2010 - 16:44 | 225503 Tyler Durden
Tyler Durden's picture

missed it. please note who brought it up first

Wed, 02/10/2010 - 18:43 | 225536 Rusty Shorts
Rusty Shorts's picture

Tyler,

Not sure if I was the first to post this link, but I did post it on;

http://www.zerohedge.com/article/pigs-and-supermodels

post#222760, Mon, 02/08/2010 at 19:00

 

 Rusty.

Wed, 02/10/2010 - 16:00 | 225375 Anonymous
Anonymous's picture

Hope for change was all it was. The BO administration truly stinks!

Wed, 02/10/2010 - 16:02 | 225388 Anonymous
Anonymous's picture

Maybe the Banksters know something. Remberber, tommorow we get to see what Iran has up it's sleeve.

Wed, 02/10/2010 - 16:14 | 225412 buzzsaw99
buzzsaw99's picture

iamned has found you, heh heh

Wed, 02/10/2010 - 16:14 | 225413 Miramanee
Miramanee's picture

My son, age 7, has pretty significant special needs. He is a beautiful fellow. Anyway, we pull up to the bank window the other day, and he looks out the unwashed-for-years back window of the car, and yells, "Eff Dick!!"

FDIC = Eff Dick

Eff those dicks straight to the pokey as far as I'm concerned.

Wed, 02/10/2010 - 16:41 | 225492 Bam_Man
Bam_Man's picture

I have 'special needs' too, but I'm probably not as cute as your seven year old.

Wed, 02/10/2010 - 16:17 | 225422 Anonymous
Anonymous's picture

Related: http://globaleconomicanalysis.blogspot.com/2010/01/fdic-friday-lotto-ano...

"If you’re a bank with a relatively healthy balance sheet with adequate capital, (like us)you want to maintain surplus capital in order to stay on the FDIC’s list of banks they can transfer the loans and deposits from a failed institution into.

This is a home run for the acquiring bank and far more of an instant benefit than any new lending."

Wed, 02/10/2010 - 16:21 | 225433 Anonymous
Anonymous's picture

Nice catch, like change divesting from the black hole.
Zero the Hero... http://www.youtube.com/watch?v=vwoT9_StEfY

Wed, 02/10/2010 - 16:22 | 225437 Anonymous
Anonymous's picture

When will people rush to the streets for the heads of those who have done us wrong? Everyday, ideas and protest seem to be hijacked by he same new-faced do nothing demagogues.

I look around and I see so many ignorant fools. Even "wealthy" people whom I've known for years, who work within banks and financial sectors even think Benny Boy saved us? Saved us? You have to be fucking kidding.

I'm sorry, but the as time goes by I'm becoming more inclined to believe that I'm surrounded by sheep who are excited to be scanned, x-rayed and taken to slaughter. America we once knew seems to becoming a myth.

When the time comes, I will be standing next to you to pick up your ideas if you fall. I know you will do the same if I fall.

Our country was founded through revolution by smaller things than what are going on today. Stand up now.

Wed, 02/10/2010 - 17:57 | 225626 lizzy36
lizzy36's picture

I'm sorry, but the as time goes by I'm becoming more inclined to believe that I'm surrounded by sheep who are excited to be scanned, x-rayed and taken to slaughter. America we once knew seems to becoming a myth.

ahhh.....stating the obvious. 

hunger, and/or lack of heat bring revolution (why do you think this administration and has extended various unemployment benefits to 99 weeks).  in the absence of either, adjust your expectations accordingly (meaning count on the "great american barcalounger revolution" to continue)

Wed, 02/10/2010 - 18:27 | 225691 deadhead
deadhead's picture

you may be interested to know Lizzy (and perhaps you do and also in regards your interest in natty) that the US does give out money for heat...called the HEAP (home energy assistance program) program and money is given directly to people (income qualification only)...in NY some people get 400 to 600 bucks for the winter heating season.

Wed, 02/10/2010 - 16:36 | 225478 Anonymous
Anonymous's picture

All of the indymac depositors who lost their money due to all the fraud & deceit surely deserve some justice . Word is Barney Frank is blocking a congressional bill to help us. Gee, wasn't he the one who helped all the people buy homes who didn't really qualify in the first place? Didn't Chuck Schumer open his big mouth which caused the bank run at Indymac? Didn't their big political donor (Soros) make a sweetheart deal? Did't Darrel Dochow from OTS do an illegal backdate? Just a little too cozy. THERE IS SO MUCH CORRUPTION IN THIS IT'S REVOLTING. Help us get our life savings back!

Sandy
http://indymacdepositors.com

Wed, 02/10/2010 - 16:39 | 225484 Anonymous
Anonymous's picture

There was a setup before IndyMac went down. Millions in CASH went to OneWest Bank from the uninsured depositers that were told by IndyMac managers that they were insured to $250K.

Wed, 02/10/2010 - 16:39 | 225487 Anonymous
Anonymous's picture

All of the indymac depositors who lost their money due to all the fraud & deceit surely deserve some justice . Word is Barney Frank is blocking a congressional bill to help us. Gee, wasn't he the one who helped all the people buy homes who didn't really qualify in the first place? Didn't Chuck Schumer open his big mouth which caused the bank run at Indymac? Didn't their big political donor (Soros) make a sweetheart deal? Did't Darrel Dochow from OTS do an illegal backdate? Just a little too cozy. THERE IS SO MUCH CORRUPTION IN THIS IT'S REVOLTING. Help us get our life savings back!

Sandy
http://indymacdepositors.com

Wed, 02/10/2010 - 16:42 | 225493 Anonymous
Anonymous's picture

At least you now understand why Paulson was sprinkling money in the banking sector along with wilbur ross....they know a good steal when they see it... jesus christ..and people sit back and just watch...we're all friggin sheep

Wed, 02/10/2010 - 16:43 | 225501 Anonymous
Anonymous's picture

What is wrong with short sales ? I dont agree with you that the hedge funds should be doing loan mods. Loan mods is the administration's stupid idea and will never solve any problems long term !! Short sales and foreclosures will also prevent banks from hiding true value of the assets which is wrong and again encouraged by our admin...

Wed, 02/10/2010 - 17:35 | 225584 ghostfaceinvestah
ghostfaceinvestah's picture

I agree, nothing wrong with short sales.

Making money off of short sales at the taxpayers' expense, I got a problem with.

I don't fault the OneWest guys, I fault the FDIC for cutting this deal.  How many bidders did they get for IndyMac?  What were the bids/terms?  Same as for any failed bank.

The FDIC works too much in the shadows for my liking, all the while claiming they are permitted because they don't take taxpayer money, which of course is total bullshit, they exist only because their insurance fund is backed by the taxpayer, making it impossible for a private deposit insurance fund to exist.

Wed, 02/10/2010 - 18:56 | 225738 badtimes (not verified)
badtimes's picture

We're (the fed) only delaying the crisis...hat tip to: http://www.iamned.com

Wed, 02/10/2010 - 16:46 | 225508 Joe Sixpack
Joe Sixpack's picture

The govt. bailouts (including supporting AIGs CDS) are basically forcing people into foreclosures and short sales while Obama and congressional Democrats talk about keeping people in their houses. Say one thing, do just the opposite.

Wed, 02/10/2010 - 16:45 | 225509 Anonymous
Anonymous's picture

ROGER JENKINS, the former high-flying Barclays executive, is plotting a series of deals focused on Ireland’s troubled banks.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_...

Wed, 02/10/2010 - 16:46 | 225510 caconhma
caconhma's picture

Brained-washed America asked for a change and it got it. 

Once a great country became a nation of fools. What a pity!

The choice becomes painfully simple: Chinese communism dominated society vs. Jewish "thieves democracy".

 

PS

My first boss was a Chinese professor and an owner of a small high-tech company. I liked and respected him a lot.

Many years later, my Silicon Valley marketing boss told me: Never waste your time trying to sell anything to Asians. They only buy from one of them unless it is available only from you. 

Wed, 02/10/2010 - 20:01 | 225844 Rusty Shorts
Rusty Shorts's picture

You are correct, we are in the final stage.

 

"...It's a great brainwashing process which goes very slow and is divided into four basic stages. The first stage being "demoralization". It takes from 15 to 20 years to demoralize a nation. Why that many years? Because this is the minimum number of years required to educate one generation of students in the country of your enemy exposed to the ideology of [their] enemy. In other words, Marxism-Leninism ideology is being pumped into the soft heads of at least 3 generation of American students without being challenged or counterbalanced by the basic values of Americanism; American patriotism.

The result? The result you can see -- most of the people who graduated in the 60's, dropouts or half-baked intellectuals, are now occupying the positions of power in the government, civil service, business, mass media, and educational systems. You are stuck with them. You can't get through to them. They are contaminated. They are programmed to think and react to certain stimuli in a certain pattern [alluding to Pavlov]. You can not change their mind even if you expose them to authentic information. Even if you prove that white is white and black is black, you still can not change the basic perception and the logic of behavior.

In other words [for] these people the process of demoralization is complete and irreversible. To rid society of these people you need another 15 or 20 years to educate a new generation of patriotically minded and common sense people who would be acting in favor and in the interests of United States society.

ED: And yet these people who have been programmed and as you say [are] in place and who are favorable to an opening with the Soviet concept - these are the very people who would be marked for extermination in this country?

YURI: Most of them, yes. Simply because the psychological shock when they will see in [the] future what the beautiful society of EQUALITY and social justice means in practice, obviously they will revolt. They will be very unhappy [and] frustrated people, and Marxist-Leninist regime does not tolerate these people. Obviously they will join the [ranks] of dissenters; dissidents. Unlike the present United States there will be no place for dissent in future Marxist-Leninist America. [Now] you can get popular like Daniel Elsburg and filthy rich like Jane Fonda for being a dissident [and] for criticizing your Pentagon. In [the] future these people will simply be [he makes a squishy noise] squashed like cockroaches for criticizing the government. Nobody is going to pay them nothing for their beautiful [and] noble ideas of EQUALITY. This they don't understand and it will be the greatest shock for them, of course.

The demoralization process in the United States is basically completed already for the last 25 years. Actually, it's over fulfilled because demoralization now reaches such areas where not even Comrade Andropov and all his experts would even dream of such tremendous success. Most of it is done by Americans to Americans thanks to lack of moral standards. As I mentioned before, exposure to true information does not matter anymore. A person who was demoralized is unable to assess true information. The facts tell nothing to him, even if I shower him with information, with authentic proof, with documents and pictures. ...he will refuse to believe it.... That's the tragedy of the situation of demoralization.

2. The next stage is destabilization.... It only takes 2 to 5 years to destabilize a nation. This time what matters is essentials; economy, foreign relations, [and] defense systems. And you can see it quite clearly that in some... sensitive areas such as defense and [the] economy, the influence of Marxist-Leninist ideas in the United States is absolutely fantastic. I could never believe it 14 years ago when I landed in this part of the world that the process will go that fast.

Most of the American politicians, media, and educational system train another generation of people who think they are living at the peacetime. False. United States is in a state of war; undeclared, total war against the basic principles and foundations of this system. And the initiator of this war is not Comrade Andropov of course - it's the system. However, ridiculous it may sound, [it is] the world Communist system, or the world Communist conspiracy. Whether I scare some people or not, I don't give a hoot. If you're not scared by now, nothing can scare you."

 

(YouTube has pulled the video links)

 

 

http://100777.com/video/bezmenov

Wed, 02/10/2010 - 21:36 | 226023 velobabe
velobabe's picture

agree with a lot of your content except:

The result? The result you can see -- most of the people who graduated in the 60's, dropouts or half-baked intellectuals, are now occupying the positions of power in the government, civil service, business, mass media, and educational systems. You are stuck with them.

 

i'm sensitive. we were free. i marched on D.C. twice, parents wouldn't let me go to chicago. bought tickets to woodstock '69. i earned my money the old fashion way, i inherited it.

Wed, 02/10/2010 - 23:11 | 226131 Rusty Shorts
Rusty Shorts's picture

velobabe,

This is part of the transcript of Edward Griffins interview with ex-KGB agent and soviet defector Yuri Bezmenov, 1984.

See link in previous post.

 

Rusty

Thu, 02/11/2010 - 11:57 | 226632 velobabe
velobabe's picture

oh, i am ditzy†

Wed, 02/10/2010 - 17:02 | 225526 Anonymous
Wed, 02/10/2010 - 20:05 | 225856 Rusty Shorts
Rusty Shorts's picture

From the Wall Street Journal...today;

 

How to invest for a global-debt-bomb explosion

http://www.marketwatch.com/story/how-to-invest-for-the-debt-bomb-explosion-2010-02-09?pagenumber=1

Thu, 02/11/2010 - 11:44 | 226662 WaterWings
WaterWings's picture

Russ,

Thanks for your posts. A lot.

Wed, 02/10/2010 - 17:48 | 225615 inflationary (not verified)
inflationary's picture

reading: http://stocknews.freeoda.com crisis will get worse

Wed, 02/10/2010 - 18:16 | 225674 Anonymous
Anonymous's picture

John Paulson and Goldman Sachs really do work well together! Such a coincidence isn't it?

http://market-ticker.denninger.net/archives/1947-The-Audacity-Of-Synthet...

_____________

"Why did I rob banks? Because I enjoyed it. I loved it. I was more alive when I was inside a bank, robbing it, than at any other time in my life. I enjoyed everything about it so much that one or two weeks later I'd be out looking for the next job. But to me the money was the chips, that's all." "Go where the money is...and go there often." - Willie Sutton

Wed, 02/10/2010 - 19:06 | 225752 Anonymous
Anonymous's picture

HOW FUCKING STUPID IS OUR GOVERNMENT, ISANITY ABOUNDS

BEN BERNANKE IS OBVIOUSLY A F'N GENIUS, HE'S DISCOVERED A THOUSAND WAYS TO MAKE THE BANKS SOLVENT, AT OUR EXPENSE

Wed, 02/10/2010 - 23:58 | 226176 Anonymous
Anonymous's picture

“The belief in a supernatural source of evil is not necessary; men alone are quite capable of every wickedness.” – Joseph Conrad

Wed, 02/10/2010 - 23:19 | 226140 Anonymous
Anonymous's picture

these fuckers have stolen 30 years of hard labor from me and they are gonna pay BY GOD!

Wed, 02/10/2010 - 23:59 | 226180 Anonymous
Anonymous's picture

Bankers make capitalist look like socialists.
jal

Thu, 02/11/2010 - 01:49 | 226322 luftmensch
luftmensch's picture

A friend has multiple properties, and was able to negotiate mods on every 1st mortgage except Indymac.

When we talked to them Indymac/OneWest -- *nothing* would work for them to approve a loan mod.  After multiple phone calls of re-engineering the income (just to try and understand what was going on at least), we finally determined that *no* income amount would work for them--every amount we came up with was either too high or too low -- like $3432/m was too high and $3431 was too low -- the algorithm they were using was designed to make the mod impossible to qualify for no matter what.

I believe they purchased his loans for less than the video reports, if you look at the FDIC docs I believe there were larger discounts for loans that had over 3m late payments, etc.

I thought they were just breaking even on the short-sale he was eventually forced into -- now I understand another layer of the horrible truth.  Let's make the billionaire's that much richer off of the suffering of anyone with a distressed property that lent from a now bankrupt bank...I think I had previously heard a rumor it was working this way, but wasn't 100% clear that it was this bad.  Would like to see this story get blown up and looked at by anyone who still thinks the stimulus/bailout is anything but larceny.

 

 

Thu, 02/11/2010 - 03:39 | 226378 Anonymous
Anonymous's picture

Who would make a deal like this? I sell you my old car for half what I paid for it and guarantee I'll fix it, put on new tires, and pay for your gas.

Thu, 02/11/2010 - 04:58 | 226399 Anonymous
Anonymous's picture

I am grateful that Zero Hedge has continued to expose corrupt actions by our financial regulators.

I am not a financial expert like most are here. However, here are some interesting information i gathered on questionable bank failures if anyone is interested.

Charter Bank, New Mexico
http://seekingalpha.com/instablog/387205-ppy/45662-charter-bank-new-mexi...

San Joaquin Bank, FBOP, and First Bank of Idaho
http://seekingalpha.com/instablog/387205-ppy/35365-first-bank-of-idaho-f...

*imho*

Thu, 02/11/2010 - 11:32 | 226639 velobabe
velobabe's picture

new mexico is the most corrupt state i have ever walked on. thanks bill.

Thu, 02/11/2010 - 13:49 | 226925 Anonymous
Anonymous's picture

"We Are Mad As Hell And We The People Of America Are Not Going To Take It Anymore!"
http://www.youtube.com/watch?v=siT44aPRKhA

"We the People": http://www.eshuffleboard.com/_Newsletters_2009/We%20the%20People.pdf

"545 vs 300-million": http://www.whyfollowdoylechambers.com/documents/545vs300-million.pdf

I am a home grown American citizen, will you stand up with me??

I hope this goes around THE USA at least 100 times!!! YOU can help it get there!!!

GO AHEAD - - - BE AN AMERICAN!!! 545 vs 300,000,000 Congress.org - Get informed, get involved today: http://www.congress.org

CALL TODAY: U.S. Capitol Switchboard (202) 224-3121
Congressional Switchboard: http://www.congress.org/congressorg/issues/basics

"We the People are as Mad as Hell: Are we becoming a Banana Republic?"
by The Funbobbasso's Channel: http://www.youtube.com/user/Funbobbasso#p/u

"If the lefties/liberals/progressives don't tap into the people's anger, the right-wing tea baggers will...and are.

But the tone, the anger will get more support - more than the tepid response of the "hopers." Meanwhile, the past and current Obama supporters are still "hoping" while the tea baggers are calling for action.

Watch the video We the People Stimulus Package: http://www.youtube.com/watch?v=jeYscnFpEyA

I'm so fed up with the system of government here. I'm furious about the Supreme Court giving equal First Amendment rights to corporate America. Going forward corporate America can spend millions…billions…to lobby the thieves and vagabonds in congress and the senate. Forget fair elections. The wealthiest will win.

So far I have refrained from posting my disappointments in the Republican Party everyday just for my own peace of mind. But the pile is too deep now and I so disgusted that some venting needs to be done on a big scale.

Instead of voting "no" on everything, which keeps others from progressing, why don´t the Republicans just opt out of Medicare, Social Security and science-based drugs and electronics.

While Republican businessmen complain about green energy alternatives, the Chinese are out getting control of the rare earth metals used in all of them
.
As a young man I chose between candidates based on three things, namely the issues, my political philosophy, and the qualifications of the individuals. Now this is impossible because the Republicans have fallen into the hands of pathological liars.

As a last resort Obama´s critics find something wrong with his scheduling of the Copenhagen visit. Turns out he chose that time because the Chinese were going to be there at that time.

Is it something new that the Deep South is so heartless?

The man who fixed my hot water heater, obviously reflecting local conservative views, incorrectly lambasted Obama´s health plan for cutting social security. Lacking either a retirement or health insurance, he is looking forward to Medicare to get two detached retinas fixed. Is he being consistent?

The Republicans are good at exploiting some people´s religious superstitions and fears of big government.

I think the Blue states should secede from the Union if the Red states continue to block social progress and to teach creationism instead of science. They are holding us back at least 100 years.

I turned on one news station after another trying in vain to get an update on the status of the health bill in the Senate. Instead, I heard endless interviews with opposing Republicans. Where´s a Democrat to get news these days?

The working poor, who obviously greatly outnumber the wealthy, could dominate American politics if half of them did not vote against their own financial self interests for reasons of religion. All the wealthy have to do is toss the religious poor a bone and they vote along with them, and it is a small bone at that. What have the Republicans ever done for the working poor except manipulate them?

Somewhere along the way the Republicans abandoned honesty in their statements and commercials.

It makes perfect sense for the wealthy individuals and corporations to dominate one of the political parties, currently the Republican Party. But why do the commoners join them?

The news media tries to make everything a debate, even evolution and the climate threat, both of which have solid scientific foundations and are beyond debate."

CONTINUE ARTICLE: "We the People are as Mad as Hell Are we becoming a Banana Republic"
http://www.americanchronicle.com/articles/view/138111

We Are Mad As Hell And We The People Of America Are Not Going To Take It Anymore!"
http://www.youtube.com/watch?v=siT44aPRKhA

Thu, 02/11/2010 - 15:02 | 227139 velobabe
velobabe's picture

we the people - 28,600 comments

Thu, 02/11/2010 - 13:59 | 226954 Anonymous
Anonymous's picture

"We Are Mad As Hell And We The People Of America Are Not Going To Take It Anymore!"

"We the People"

"545 vs 300-million"

I am a home grown American citizen, will you stand up with me??

I hope this goes around THE USA at least 100 times!!! YOU can help it get there!!!

GO AHEAD - - - BE AN AMERICAN!!! We the People - 545 vs 300,000,000 Congress.org - Get informed, get involved today!

CALL TODAY: U.S. Capitol Switchboard (202) 224-3121
Congressional Switchboard

"We the People are as Mad as Hell: Are we becoming a Banana Republic?"
by The Funbobbasso's Channel

"If the lefties/liberals/progressives don't tap into the people's anger, the right-wing tea baggers will...and are.

But the tone, the anger will get more support - more than the tepid response of the "hopers." Meanwhile, the past and current Obama supporters are still "hoping" while the tea baggers are calling for action.

Watch the video: "We the People Stimulus Package"

I'm so fed up with the system of government here. I'm furious about the Supreme Court giving equal First Amendment rights to corporate America. Going forward corporate America can spend millions…billions…to lobby the thieves and vagabonds in congress and the senate. Forget fair elections. The wealthiest will win.

So far I have refrained from posting my disappointments in the Republican Party everyday just for my own peace of mind. But the pile is too deep now and I so disgusted that some venting needs to be done on a big scale.

Instead of voting "no" on everything, which keeps others from progressing, why don´t the Republicans just opt out of Medicare, Social Security and science-based drugs and electronics.

While Republican businessmen complain about green energy alternatives, the Chinese are out getting control of the rare earth metals used in all of them.

As a young man I chose between candidates based on three things, namely the issues, my political philosophy, and the qualifications of the individuals. Now this is impossible because the Republicans have fallen into the hands of pathological liars.

As a last resort Obama´s critics find something wrong with his scheduling of the Copenhagen visit. Turns out he chose that time because the Chinese were going to be there at that time.

Is it something new that the Deep South is so heartless?

The man who fixed my hot water heater, obviously reflecting local conservative views, incorrectly lambasted Obama´s health plan for cutting social security. Lacking either a retirement or health insurance, he is looking forward to Medicare to get two detached retinas fixed. Is he being consistent?

The Republicans are good at exploiting some people´s religious superstitions and fears of big government.

I think the Blue states should secede from the Union if the Red states continue to block social progress and to teach creationism instead of science. They are holding us back at least 100 years.

I turned on one news station after another trying in vain to get an update on the status of the health bill in the Senate. Instead, I heard endless interviews with opposing Republicans. Where´s a Democrat to get news these days?

The working poor, who obviously greatly outnumber the wealthy, could dominate American politics if half of them did not vote against their own financial self interests for reasons of religion. All the wealthy have to do is toss the religious poor a bone and they vote along with them, and it is a small bone at that. What have the Republicans ever done for the working poor except manipulate them?

Somewhere along the way the Republicans abandoned honesty in their statements and commercials.

It makes perfect sense for the wealthy individuals and corporations to dominate one of the political parties, currently the Republican Party. But why do the commoners join them?

The news media tries to make everything a debate, even evolution and the climate threat, both of which have solid scientific foundations and are beyond debate."

CONTINUE ARTICLE:"We the People are as Mad as Hell Are we becoming a Banana Republic"

"We Are Mad As Hell And We The People Of America Are Not Going To Take It Anymore!"

Fri, 02/12/2010 - 16:29 | 229016 Anonymous
Anonymous's picture

The reality of the day is that all of you mad as hell types aren't really that mad at all, and will happily continue to take it big, long and rectally from the nation's "entrepreneurs" so long as you can continue to watch NCIS re-runs at night and stuff your fat faces at crackerbarrel on weekends. You've likely never held a weapon in your life because you know deep down that you would shoot yourself inside of 5 minutes. You grew up not understanding anything, relying on "systems" to protect and take care of you. And you don't have the stones to do what it takes to actually make a move.

Tue, 02/16/2010 - 21:13 | 233309 albion402
albion402's picture

Did anyone see today's video on ThinkBigWorkSmall.com?  The boys, Frank and Brian, gave a smash-mouth response to the FDIC's denials.  Good research being done at www.tbws.com

Mon, 04/19/2010 - 10:28 | 307878 Tom123456
Tom123456's picture

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Sat, 11/06/2010 - 04:09 | 704848 Karston1234
Karston1234's picture

So far I have refrained from posting my disappointments in the Republican Party everyday just for my own peace of mind. But the pile is too deep now and I so disgusted that some venting needs to be done on a big scale.online schools | distance learning schools | campus based schools | online degree programs | online high school programs

Wed, 02/23/2011 - 03:47 | 987846 shawnlee
shawnlee's picture

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Tue, 05/31/2011 - 00:56 | 1324525 kummar
kummar's picture

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sun1's picture

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sun's picture

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sun's picture

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