Senate Hearing Over Fraudclosure Begins: Live Webcast, And Relevant Ted Kaufman Thoughts

Tyler Durden's picture

Live coverage of the Senate Banking Committee's make believe grilling of Bank of America representative Barbara Desoer over fraudclosure starts live at 3:15pm, or was supposed to: just like the EU Press Conference, it is also late.

As a reminder here is a list of the participants:

  • Honorable Tom Miller

    Attorney General

    State of Iowa

  • Ms. Barbara Desoer

    President

    Bank of America Home Loans

  • Mr. David Lowman

    CEO

    Chase Home Lending

  • Mr. Adam J. Levitin

    Associate Professor of Law

    Georgetown University Law Center

  • Ms. Diane E. Thompson

    Counsel

    National Consumer Law Center

  • Mr. R. K. Arnold

    President and CEO

    Mortgage Electronic Registration Systems, Inc

The live senate webcast can be seen here, while a much better quality webcast via CSpan can be seen after the jump.

 

And for those who couldn't care less about the asshats in the clip above, here is one actually relevant, and informed opinion, belonging to the new Chair of the Congressional Oversight Panel, Ted Kaufman, which will appear in a full interview to be aired later today on Fox Business. Here are the key points from the upcoming interview:


On how the Congressional Oversight Panel thinks the Treasury could be more effective:

“We think they should stress test the banks. There's probably a small probability that something really bad could happen but we do want to be prepared for that. We also think that they should be looking over Fannie Mae and Freddie Mac to see what the impact on that should be. And then just keeping faith in the housing market, as I said before, making sure that every American is getting due process.”

On what they are asking the Treasury to focus on:
“There's an old economic, engineering term called expected value.  Even if there's a small probability of something happening but it's really, really, very, very bad, you really should look at it very, very seriously.  And that's what we're calling on Treasury to do. Treasury is doing its job.  The federal government, they've got task forces looking into this but we just felt it was important to really stress this and layout, as I said before, some of the things we think they should be doing, including stress tests.”

On the reasons the Oversight Panel created this report:
“For Americans out there, whether they're getting due process; who owns their mortgage and how all that works is a big problem. Number two is the financial stability of the banks. This could be a real threat to the financial stability of the banks. And three, Treasury has a $30 billion mortgage modification program and what are the impacts on that.  We still have a housing problem. But hopefully we're going to get the housing problem turned around and this could be a real problem to stop that if we don't get on top of that.”

On whether housing problems still exist:
“Essentially banks are saying they don't have a problem.  They've called off the foreclosure moratorium that they had in place.  And they're moving ahead and they say there's no problem.  The overwhelming consensus in the financial community is that this is all ok. I want Treasury to look into this.  We talked to Treasury.  I think they are going to look into it. There's a number of scenarios that could work out very badly for the mortgage market and for individual Americans.”

On whether robo-signing is leaving mortgages in limbo:
“Clearly that's a problem.  I mean, that's out there.  But the robo-signing could make this all very, very difficult.  The fact that thousands of people were signing foreclosure documents, they didn't know what was in them is really scary.”

On the fact that only 467,000 foreclosures have prevented:
“We really count on Treasury to monitor this closely.  Phyllis Caldwell from Treasury said they think they've got it under control.  We just think that this should be really looked into.”

On what the Treasury is missing in regards to Fannie and Freddie:
“One is the whole robo-signing, mass documents, who owns the mortgage is a big deal. The other thing with Fannie and Freddie is this whole put back issue. You've followed with the New York Fed and PIMCO asking for $49 billion back from Bank of America based on put backs.  And, of course, Fannie Mae and Freddie Mac have both been asking those things, too.”

On how the ambiguity of who owns these mortgages is a problem for homeowners:
“Historically what you do is you could go into your local banker and if you want to modify your mortgage, you want to increase it, you want to pay off early, there's somebody you can talk to.  Now people don't have someone to talk to because they're not quite sure who owns the mortgage.”

On whether it is possible that we may never know who owns some of these mortgages:
“That's one of the very small probability, very worst case situation. That could be a very, very serious problem. Because if you don't own the mortgages then you can't go to foreclosure.  And to the extent that banks have money tied up in these mortgages, especially ones people haven't paid for them in a long time, it could be an incredible drain on bank assets and we know banks are still just recovering from the last financial problem. This could be a very major problem in terms of recovery of the banks and therefore the recovery of the financial system and jobs.”

How much taxpayers will be responsible for as a result of all the bad mortgages:
“I have no idea. I'm the Chair of the Congressional Oversight Panel and the TARP and our main thing is to oversee Treasury.  Over $700 billion was originally put in for TARP and CBO says now it looks like the estimate is around $66 billion. So from that standpoint, this program's turning out to cost a lot less than we thought.  A lot of that depends on how the IPO comes out of General Motors and this mortgage program and problems like this.”

On the financial risk to major banks:
“Under the worst scenario this could be a very serious problem for our major banks.  In the Dodd-Frank bill there's resolution authority to deal if we get into a real problem.  But that's never been tested.”

On whether they should have set aside assets rather than infusing the banks with money:
“I think there's a very good argument for that, looking back on it. We're pretty much far down the road.  TARP has really been closed on October 3rd. They can't change what the basic program is that treasury's doing, so we're pretty good.  It's going to be a very interesting question about what we did and whether we did it the right way or not.”

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goldmiddelfinger's picture

Dodd has a Leprechaun in two fights today ?

flaunt's picture

I don't know if I can bare to watch this... A bunch of scumbags talking to other scumbags about how to best rip off the public. 

DollarDive's picture

Dodd is a crook.... As I try to watch this drivel...I ask myself ? What's the point ? Why waste all the taxpayer dollars on these stupid hearings.  Nothing is ever solved.  What's the endgame ?  Is there hope that we'll learn ?  In order to learn you have to understand the markets and risks and truly not be biased or seeking a specific outcome.  Really dumb process.

Waterfallsparkles's picture

I like Senator Dodd.  At one point in the Hearings today he got one of those Ah Ha Moments. Once he understands what is happening I think he will rally for it.

I think we will see some new Legislation to help Homeowners and stop the Foreclosure process once people are in a Modification.  I have faith in him.

assumptionblindness's picture

you forgot to end your post with "/sarcasm off/"

Fraud-Esq's picture

There is not one man better at fooling middle class women and men than Dodd. Not one. He's the master. This man was the Senate banking chairman that nailed the country to a cross of bankers. It took Nixon to go to China and a bullshitting, honest appearing Democrat to sell bank fraud as law.  

I could give you a long list of his legislative mendacity, including helping the Enron banks aid and abet fraud with zero liability. Take a look at his donors too... 

Cognitive Dissonance's picture

And the spirits are about to speak.

Bill Lumbergh's picture

I am sorry but if Dodd is involved this investigation is going nowhere quick.

SheepDog-One's picture

Right, Dodd the guy HIMSELF with some very shady real estate sweetheart transactions is the one leading the investigation into the corruption? A real laugh riot.

goldmiddelfinger's picture

Yeah, Dodd gonna speak at the hearing! He's gonna take the 5th!

So Close's picture

The blind leading the blind in the land of the lost.

 

QE2  explained.  Have to watch.  Could have been written from the anals ZH

 

http://www.silverbearcafe.com/private/11.10/QEexplained.html

traderjoe's picture

He's always this close to being on time/topical...

Peace is the x-axis's picture

"...written from the anals ZH"

Indeed.

 

Heavy's picture

Selling pitch forks here, get yer pitchforks!  Can't have a monetary revolution without one! Only ten silver dimes and you can have the pick of the litter.

Nat Turner's picture

I'll take all the pitchforks. Do you have any gasoliine, rags and bottles?

Heavy's picture

No, but try the gas station down the street, they still take funny money, get in while the getting is good.

TruthInSunshine's picture
See, I'm a man of simple tastes. I like dynamite, and gunpowder...
And gasoline! Do you know what all of these things have in common?
They're cheap. All you care about is money. This class deserves a better class of criminal...and I'm gonna give it to 'em. Tell your men they work for me now, this is my city. 
johngaltfla's picture

If anyone hears anything remotely close to "the rule of law" and "honesty" let me know. Other wise this is a fertilizer disbursement event.

Heavy's picture

I think I heard a hollow echo of it, does that count?

TruthInSunshine's picture

Those words and phrases have been outlawed by the Ministry of Truth.

Cdad's picture

Never mind....the AGs have already proposed a settlement.  Average Joe screwed once again.  Justice swept away, once again.  Crony capitalists still in deepwith corrupt DC scum...again.

Just what the HFTs needed, too, to ramp into the close.

This will end only in revolution...the defunding of ALL of these various inept government agencies, bodies, groups.  All of them.

Heavy's picture

Knew i heard some sort of hollow echo.

buzzsaw99's picture

I'm only watching on the off chance dodd has a stroke and keels over dead on national television.

goldmiddelfinger's picture

They'd prop him up like "Weekend at Bernies" (or was it weekend at Barney's-horrid images)

HarryWanger's picture

This dog and pony show will also help the markets as it proves to be nothing more than what it is.

Ireland news never really materialized into anything today.

All key support levels on SPX, AAPL and DOW all held strong today. 

Tells me we're looking at a pretty strong market day tomorrow.

hedgeless_horseman's picture

Paint that tape, bitches!!!!!

GM PO --->  Ixna ona etha arketma onditionca?

Cdad's picture

Not exactly...short covering based on CNBC announcement that the fix for the big criminal banks is in on this whole pesky criminal foreclosure issue.

However, clearly over extended the buy side into the close...and now we learn that the Irish told the EU to fuck off...so...take what you can get, I guess.

 

johngaltfla's picture

The taxpayers just got fucked as did the homeowners per the breaking news on CNBC of a "foreclosuregate" settlement agreement.

TemporalFlashback's picture

WTF was that move in BAC w/in the last 5 minutes of trading?

hedgeless_horseman's picture

"foreclosuregate" settlement agreement.

See above?

Cdad's picture

That move was the CNBC announcement that the issue has been settled by state AGs....and the resulting action by the criminal syndicate known as Wall Street.

Feel good?

 

TemporalFlashback's picture

Not at all. I just read the article. Expected result. Horrible excuses for Attorneys General that we have... obviously, not surprising.

Cdad's picture

This country is doomed.  Printing money, looting the treasury, and pardoning the institutional criminals that created the entire mess.

Nice that they threw us all a dip in gold.

Heavy's picture

I just got the next shipment of pitchforks... the price is now 20 silver dimes.

grunk's picture

100% increase?

What happened to the deflation that the Ben Bernank was worried about?

Heavy's picture

Prices move on news, not fundamentals these days.

Do not listen to the words of the Bernank demon, nore look too deeply into his beard.

jowenchrist's picture

Citi - 111.4 million shares trade between 3:30/4:00 - same ol game -

TideFighter's picture

Some guy just starting screaming, "HEAR MY STORY, THE HOMEOWNER'S NEED TO BE HEARD!"

Cops cleared the room. This is worse than a goat-farking contest at the county fair. Friggin' lying retards.

TemporalFlashback's picture

LOL @ this comment on cnbc's post about a possible settlement, "so the deadbeat borrowers get away with it, don't pay your mortgage and get state legal help this country is going right down the tubes."

 

 

snowball777's picture

So Bernie Madoff rips off billions, John Thain skips out of the burning husk of Meryl with a bejeweled fucking chute, and some asshole is worried about people living in a shitty condo rent-free?

Got priorities?

TemporalFlashback's picture

The guy that wrote that under the cnbc article forgot to put "/sarcasm" at the end of his post.

Joe44oz's picture

"The lack of restraint on servicer abuses has created a moral hazard juggernaut that at best prolongs and deepens the current foreclosure crisis and at worst threatens our global economic security" - Diane Thompson

 

Misean's picture

"Even if there's a small probability of something happening but it's really, really, very, very bad, you really should look at it very, very seriously.  And that's what we're calling on Treasury to do. Treasury is doing its job."

Lootery is doing its job!!!!!!??!??!??!  BWAHAHHAHAHAHAHHAHAHHAHHAHHAHHAHAHAHHAHHAHHHAHHAHHAHHAHHAHHHAHAAHHAH!!!!!

Oh that's friggin' rich!  God that's rich! Yep, their job is to loot the middle class for the benefit of the banksters! Heck of a job, Timmah!

CitizenPete's picture

I can't even bear to watch those slithering worms re-write the rules and warp the law anymore.  When the F are people gonna wake up?  We are all being screwed to the Nth degree.  Isn't there just one wacko out there, who has a hair on his TSA groped junk to stand up to these criminals?  

The most honest 33 second comment regarding the fraud-closure from the COP:

http://www.youtube.com/watch?v=cVTfsOPMcns

 

Fraud-Esq's picture

Banks: "Oh documents! This is HARD"

Dodd: "Don't worry, you know the deal...;)"

snowball777's picture

"This could be a real threat to the financial stability of the banks."

The biggest threat to the financial stability of the banks...is the banks!