Maxine Waters Denounces Bank of America - GSE Putback Deal As Taxpayer "Giveaway"

Tyler Durden's picture

While we frequently make fun at Maxine Waters, and often for good reason, in this case the Congressional Democrat is spot on: the member of the House Financial Services Committee has denounced the BofA-GSE settlement as nothing more than a "backdoor bailout" funded by taxpayers, precisely as disclosed yesterday in the exhaustive Forbes piece that is a must read.

From a just released statement.

Congresswoman Maxine Waters, a senior Democrat on the House Financial Services Committee, issued the following statement today after Bank of America settled with Fannie Mae and Freddie Mac for $2.8 billion over the misrepresentation of loans that the bank originally sold to the GSEs:

I’m concerned that the settlement between Fannie Mae, Freddie Mac and Bank of America over misrepresentations in the mortgages BofA originated may amount to a backdoor bailout that props up the bank at the expense of taxpayers.  Given the strong repurchase rights built into Fannie Mae and Freddie Mac’s contracts with banks, and the recent court setback for Bank of America in similar litigation with a private insurer, I’m fearful that this settlement may have been both premature and a giveaway.  The fact that Bank of America’s stock surged after this deal was announced only serves to fuel my suspicion that this settlement was merely a slap on the wrist that sets a bad example for other negotiations in the future
I understand that the questions raised by fraudulent servicing practices were not addressed in these settlements, and I hope that Fannie Mae and Freddie Mac, along with their conservator, are more aggressive in pursuing banks for the fraud I documented in my Subcommittee during the last Congress.”

Zero Hedge also hopes that formerly disgraced BofA GC Tim Mayopolous unrecuse himself (we have no idea how on earth that is possible), and if he will not or refuses to, then he should immediately vacate the post which he took after being fired from precisely the same position at Bank of America. At least there his duty dereliction would  confine damages to the firm's sad shareholders. Now that he is at Fannie, taxpayers simply refuse to have this "counsel" represent them if he will not pursue taxpayer interests to the fullest extent, which at the end of the day amount to trillions of dollars. And certainly, Mayopoulos should immediately see his annual compensation cut dramatically from his existing run-rate of $3 million - an amount  henceforth collected for reasons unknown.

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midtowng's picture

How is it possible that a non-conservative can be right about anything on ZH?

UncleFurker's picture

>How is it possible that a non-conservative can be right about anything on ZH?

The enemy of my enemy is my friend.

MiguelitoRaton's picture

It's very simple Maxine is just pissed off that a taxpayer giveaway went to a bank and she didn't get her piece of the action. Now, had it gone to the bank her husband invested in (like the time she got caught with her hand in the TARP cookie jar) all would have been well. But for her to get caught on a small taxpayer bailout to her husband's bank and then to have this HUGE bailout to a bank where she doesn't get a taste...that is just plain wrong! How dare they? Had Maxine gotten her taste of the deal, she would be quietly licking her chops right now.

johngaltfla's picture

Uh, a staffer read ZH and went "oh, now we can scream about this since we are in the minority power position" which of course is hilarious because they were dead silent last week when the taxpayers were raped by the Treasury as the took money from their left pocket (taxpayers) transferred it to their right pocket (GMAC/ALLY) then shuffled it to their front pockeet (Fannie & Freddie).

With a 0.15% settelement on the billions owed.

And I didn't get a kiss or reach around from the scumbag Turbo Timmy either.

Calvin Jones and the 13th Apostle's picture

Stopped clocks and all of that.

Careless Whisper's picture


yeah, she's a little ditzy, but when the exec from shell oil threatened her with $5/gallon gas if they can't drill more, she told him back-off jack or we'll take over your oil company.  she wasn't very artful, but she made her point.

Cdad's picture

If you really believe deeply in what you just wrote, then you are as your name would indicate.  A little ditsy?  Are you serious?  She is a moron.  She is also a socialist...although she has not admitted this publicly. 

Like everyone else here, I want the worm to turn for me, for you, and for justice...but not at ANY PRICE!

Good grief [and by that I mean I cannot believe you described her as "a little ditzy."]

nmewn's picture

Maxine has picked all the meat off the bone...time to throw it over her shoulder to the dogs.

Lord Koos's picture

Gee who caused more damage to America -- BP or Ms Walters?

cosmictrainwreck's picture

hmmm....let me think about that one. Maybe BP, but ONLY because we can't pin but 1/535th of the shitstorm on Maxine. Otherwise, a dead heat.

Cdad's picture

These are even dumber responses to the issues.  Socialism, as it has taken hold in America over the last 30 years, has done FAR MORE DAMAGE THAN BP.  I say this as a fellow short the world's largest petroshrimp maker.

Please, this part of the comment thread under this "Waters" issue is becoming really, really, really stupid...and so it should be ended as participants in it take a moment to think before talking.

Our prayers are not answered in the words of Maxine Waters.  Of this, I am sure.  If you are not, you probably need to initiate a vitamin regiment.

goldfish1's picture

At least she has the moxie to say what's on her mind and for that, kudos.

mynhair's picture

Moron.  Where have you been?  See above.

DosZap's picture

Yeah, the lying sack of shit,I despise the bitch.She is guilty as hell, and should be minimum Reprimanded like Dingledangle for her theft.All the years of race carding and baiting what a scunt.

TO her credits, 1 Right , 10,000 Wrong.

atomicwasted's picture

When someone's on your side on an issue you get behind them on that issue.  It doesn't mean you have to like them.  How are we going to get people on our side when we just shit all over them when they finally do the right thing?

Cursive's picture


Word.  Some people have a little problem with coalition building.

Spalding_Smailes's picture

Cry me a river. The smart money is on BAC & AIG the bailout saved the system. 

Buy low ... Sell high.

Screwball's picture

Hell froze over.

mynhair's picture

If your $174,000 salary plus benefits plus future speaking engagements were threatened, would not you also lie out your ass?

Sophist Economicus's picture

For $174K ya think she could get better specs than the ones she's sporting

Blano's picture

Maxine Waters might be right about something.

Detroit Lions win 4 straight.

Somebody needs to check the temperature in Hell.

Sophist Economicus's picture

It was in the FOMC minutes -- Still hot, very hot

oygevalt's picture

Totally... hell has frozen, the check is in the mail, and baby I'll respect you in the morning territory there.

A Nanny Moose's picture

Wake me up when the LA Clippers Win the NBA title.

Max is just a blind squirrell trying to get a nut

SwingForce's picture

Maxine, call it like it is! BAC got off the hook for 1 cent on the dollar! Who pays the other 99 cents? You are right! The Taxpayers! "Its an outrage! If I were you, I wouldn't pay it!" - Groucho Marx, and its alot more than an extra coke we're talking about.

Policeman: "A hermit eh? Then why's your table set for four?" Groucho: "That's nothing. My alarm clock is set for eight."

Groucho Marx in A Night at the Opera (movie)

Taxpayers are killing themselves in droves, their burden is not an issue?


mynhair's picture

Bitch has a lamp post reserved in her name.

DHS, just quoting the Wif.

weinerdog43's picture

One for you too, Nazi, one for you too.

mynhair's picture

Maxine and her conscience (if she has one)

Sophist Economicus's picture

Now mind you, I'm just thinking out loud here, but given the number of posts you have heaped on dear Ms. Waters, something tells me you did not contribute to her last re-election bid...

Cdad's picture

I think waiting for justice to come from the hand of Maxine Waters is the equivalent of tuning in to Fast Money for comprehensive trading advice. 

 I hope that Fannie Mae and Freddie Mac, along with their conservator, are more aggressive in pursuing banks for the fraud I documented in my Subcommittee during the last Congress.”

When Maxine Waters releases more comments that reveal that she understands that Freddie, Fannie, and the conservator are all in bed with the criminal syndicate known as Wall Street...and none will pursue no such aggressive path to fraud revelation, I will continue to not hold my breath on her account.

Sorry...I just cannot go that low in search of light.

liberal sodomy's picture

That fucking nigger should be manning bedpans in haiti or the congo.  Not sitting in the seat of an Anglo Saxon government.

NotApplicable's picture

You fail so hard at trolling, it isn't even funny.

liberal sodomy's picture

So you're saying she shouldn't be manning bedpans in the Congo and she should be sitting as a representative in an Anglo Saxon form of government?


I guess we do get the government we deserve.

Lord Koos's picture

I need no more conformation that you're an idiot.

DoctoRx's picture

This reply crosses a line that is difficult to cross at ZH.

Tyler:  is there a way to block comments containing certain words?

liberal sodomy's picture

"Cry me a river"  -leonard pitts

cosmictrainwreck's picture

Doc, I sympathize with your sentiment - and personally have no truck with anything the sodomizer has to say, BUT geeze-louise, ZH is the ONLY fukin' place I have any respite from PC-ness. So - if we ban "nigger" how 'bout motherfucking cocksuker (only when used together). That I would take as an affront to my "freedom of expression". It's a bitch.