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Tim Mayopoulos Recused Himself In Discussions Over Bank Of America Settlement With Fannie
When we first heard news about the partial settlement between Fannie and Bank of America, we assumed, naturally, that the current Fannie General Counsel Tim Mayopoulos, and former spurned Bank of America General Counsel, would have been front and center in such discussions. After all he is the damn general counsel, who just happens to know all the dirt there is about Bank of America. We also assumed that any non-disparagement, and/or related trade secrets clauses would be obviously very much irrelevant. We were wrong. It appears that the man who more than anyone should have been able to put two and two together and actually derive some benefits to his bosses, the American taxpayers, and generate a better settlement.... decided to recuse himself from the negotiations! We wonder then just on what grounds this man, who it seems Ken Lewis may very well have had a justifiable reason for getting rid of, was awarded $3 million in compensation for doing nothing to protect taxpayer interests in America's most (openly) insolvent company.
From the WSJ's Heard on the Street:
Sometimes it is great to have an ex-colleague across the negotiating table. Sometimes not. Bank of America must have breathed a sigh of relief when Fannie Mae general counsel Timothy Mayopoulos recused himself from negotiations over soured loans. No wonder. Mr. Mayopoulos was once BofA's general counsel. He was dumped in December 2008 and succeeded briefly by Brian Moynihan, now CEO. That would have been an awkward reunion.
This is an absolute travesty, and immediate grounds for docking this pathetic excuse for a GC all of his not so hard earned $3 million in compsenation: not only has he been derelict in his duty to preserve taxpayer interests, but, as Forbes so well puts it, has facilitated through his passive inactivity yet another taxpayer bailout of the world's most corrupt mortgage lender. Lastly, we wonder just what "temptations" his replacement at BofA used on Timmy to get him to agree to become irrelevant in the most important legal negotiation of his now pathetic career.
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JUSTICE IS SERVED!
euh...wait...
Did he really need to be in the negotiations if he'd already given the GSEs their strat for the "pomp of settlement"?
The most important aspect of a free market, and the reason why competition "works" as an incentive, is that companies feel the consequences of either their success or failure. If companies feel consequences, up to and including bankruptcy, then they find ways to make sure their employees, particularly management, feel the consequences.
In socialism (government-owned) or fascism (private "ownership" but with public controls and subsidies), this isn't true. So management does not care about consequences except to game whatever system is put in place.
And people are continually surprised at the perverse outcomes generated by these perverse incentives.
And this surprises you, TD? Man is self-interested, and power corrupts. We need to expect every single person put in a position to profit will benefit themselves above all else. Only when we accept such self-preservation as the over-arching, driving impulse for all Homo sapiens will we as a society begin to realize no man then deserves to be entrusted with such power, rather than hoping that the next messianic figure will fix it. Only when we expect the worst from public servants will we put proper limits on their power.
Well said!
we might as well play taps for any even nanodot left of concern for the taxpayers. the rule of law is completely gone. the banks rule and they are asset stripping the population now.
good luck to all. buy gold.
And everyone thought the outcome was going to be any different than a slap on the wrist? The looting of middle class continues unabated and in complete daylight for all to see (err.. "care to see", "know how to see", etc. - whatever fits).
Outrage. My frustration with our corrupt government (and GSEs) sets new records daily. If you want to change things and make a difference, where do you even start?
There is no justice. It used to be "grab a gun," now we have to pray for divine intervention.
Among the elected, there are no longer Republicans, there are no longer Democrats. There are only Rebanklicrats.
I've come to the conclusion that you cannot make a difference. Partake of the system completely and engorge, endure the cognitive dissonance of being an unwilling participant, or leave the system.
The problem is that we don't have enough active voters who know the truth, vote intelligently and remindthe reps that we are watching. The basic voters just say "I vote D or R" thats it. The next level is I don't want taxes to go up, or I want more medicaid or welfare, or he looks trustworthy/presidential.
There are few of us who have taken the time to learn (at least in part) what is going on. But our numbers are growing, so spam your reps/senators. If even all zerohedge readers did we'd make a good dent.
This is where I have just about run out of optimism. The tea partiers have been co-opted by the establishment and don't even realize it. Several elected tea partiers have hired lobbyists for staff positions, after saying they would not. Congress has, with a straight face, complained about the deficit and then extended tax cuts and unemployment benefits which will drastically increase the deficit. The Fed does what it does, the CFTC does not do what it should, nor does the SEC. The truth of the matter is that there are NOT enough people watching, and it will take another, far worse, crisis to stoke any real action.
Justice is indeed served.
BAC settled with Freddie Mac for a penny on the dollar (yes that is one cent).
All homeowners should be seeking the same deal. You mortgage is worth $200,000. offer to settle with Freddie Mac for $2000.
After all whats good for the banks should be good for the taxpayers. Isn't that how these settlements are always sold to a bent over taxpayer?
Three million in hush money. Not bad.
I hope the hooker knew what she was doing. Don't worry, the little secret is safe from his wife and family.
...his passive inactivity...
Not a "she". You have to remember these are activities performed at Barney's house of ill repute and these are payments made for Freddie's services. We haven't seen what the tab is for Fannie's services yet.
Time for Julian to take a dump on BoA
Fraud will continue until the banks are solvent - and then continue on unabated thanks to scum-sucking politicians and a corrupt regulatory environment that is beholden to only those who profit at taxpayer expense.
Settlement? This is much more like a coverup of total and complete corruption.
Would bet that some of those new
Tea Party dudes and dudettes will call
out Fannie and Freddie. These are black
holes with conflicts of interest galore.
They shouldn't be "settling" anything
with the banksters.
They dont have to do much at all to upset this apple cart, just resist debt ceiling raise, harass the FED for oversight, demand to see some banks balance sheets. Any of that and this Ponzi is goin down.
This guy is as big a crook as Ken Lewis, and the current bozo's running the place. Of course all we have is a corrupt organization (bankrupt at that) word that he recused himself........there word is worth about what the GSE's paper's worth.
How can Congress NOT know this is
just plain fraud on the taxpayer?
Where the "f" are they? Not a word.
They are busy grandstanding over the debt ceiling.
And the Tea Partiers do not have a clue re: this situation.
I really expect the gang of freedom of speech to show up.
Here's a person who acted suspiciously, in a manner that could wrong the mandate supposedly to be respected.
Walking clear of charges and with a compensation.
Why would such a person spend time on chasing people on the Internet or somewhere else to prevent them from speaking their mind?
That person has nothing to fear, is free as a bird and with a nice bonus in the pocket.
What sane person would waste resources to try to deprive people from their freedom of speech in such a context?
In dictatures, wrongdoers are in fear of people speaking freely because they fear back lash.
In US republic type, these kind of persons, after their action, are free from the necessity of censoring people as they perfectly know they have nothing to fear from free speech.
Is it not progress as the US wanted it and forced on the rest of the world?
The US promised free speech? Well, you got it. Speak as much as you want and speak even more.
America is a nation of pathetic sell-outs. Debt slavery and a general lack of self-discipline will do that.
US is just a bunch of pirates gone wild grabbing for the last scraps of anything left of any value...its all goin down.
If the banksters defrauded Fannie and
Freddie on MBS and got away with settling for pennies, I can imagine the garbage they must have sold to Bernanke during QE1. What's that going
to eventually cost us?
It would have been a conflict. That being said, there may have been a lot of nod wink stuff going on, with him participating without participating, if you know what I mean.
Self interest always keeps one in the game.
The dollar/silver ratio per Judas: 3 million dollars = 30 pieces of silver. Hyper-inflation knocking on the door. Knock knock knockin on everyone's door.
Ah... fratricide forgiven...?
Foreboding foreborne?
Families forcefully foreclosed!
Forgeries found and forgotten; forlorne freedom. Forfeit forever... ?!?!
Fight?
Or, find this Predictable but Disgusting behavior acceptable? If you have such forgiveness weakness in your heart, the banksters have won.
Disgusting...
he had to leave otherwise risk losing his bar card for defrauding the courts with his stench and fraud. if a case is too strong, lawyers will not enter the court room because in these cases they can risk losing their bar cards.
Where's the BAC Wiki Dump?
Release the Kracken, Assange.
We want it, and we want it now.
Mayopoulos, Moynihan, Lewis! Goddamn Jew bankster bastards!
Oh, wait a sec...