Taxpayers may pay legal bills for Mortgage Executives?
Another twist to whole mortgage mess, taxpayers may be paying for legal bills for mortgage executives who were partly responsible for the housing market collapse! According to an article on Yahoo News, because the Government bailed out Fannie Mae and Freddie Mac, the Government also inherited Fannie Mae and Freddie Mac’s contracts that stipulated they would cover the legal bills for mortgage executives.
So you have the Justice Department investigating companies that were involved in the mortgage and financial meltdown. Those mortgage executives that are under investigation have hired attorneys to represent them. But guess who gets to cover the bill? Taxpayers! So not only is taxpayer’s money being use to investigate mortgage executives who are allegedly responsible but we as taxpayers are also footing the bill for their defense! How about that injustice!
You would have thought the Government would have known about this before they bailed out Fannie Mae and Freddie Mac and would have made conditions on the bailout like we won’t be paying legal bills for mortgage executives!
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4 Responses to “Taxpayers may pay legal bills for Mortgage Executives?”
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This is a topic with which I have at least a modicum of knowledge and a LOT of history. The recent rush to give away well over a trillion dollars to the very people who caused the problem in the first place is something that infuriates me. And by the way, those of you in the real estate, house flipping, and construction business need to look in a mirror and accept that YOU are at least a part of the problem.
Prior to the Congress approving this give away, there was what was called the “common sense plan” circulating. It was a plan that may have cost upwards of 300 billion (as opposed to the 1.5 TRILLION give away) Gee I wonder why congress predferred to pass a plan promulgated by the former Wall Street CEO Treasury Secretary, and designed to help out other Wall Street CEO’s?
Oh, and by the way, I see that almost all incumbant congress people were returned to office, despite the fact that they rushed through, pushed through, this give away to Wall Street, the banks, and other financial institutions. Go figure.
Prior to Congress’ caving to the usual suspects, there was something circulating called the Common Sense Plan. The common sense plan called for 1) the government insuring all sup prime loans, 2) the government suspending the mark to market rules in order to protect lenders from the consequences of all these now bad loand, and 3)the elimination of capital gains tax on ALL NEW investment. ( I would suggest this part have been modified to cover all new investment held for two years, and also that effective year three, there be a published schedule of increases in capital gains for the following three years, but that’s just me)
In any case, apparently most elected so called representatives suucumbed to the big money interests, rather than foillowing the stated desire of something like 80% of their constituents to deny the fnancial industry these give aways. ( and you voted to return these pigs to office, didnt you?)
So YES, we are ewntering the era of Government give aways to the big money contributors and big money interests, instead of placing the focus where it belongs. But YOU are happy, arent you?
Welcome to the era of National Socialism, where Government partners with the powerful rich corporations, while throwing crumbs at the rest of us.
You can call me a kook if that makes you feel better,. After all, it is easier to live in La La Land than it is to open your eyes and see what is really happening. Night of the Living Dead? The Matrix? Use whatever metaphor you wish, but you are toast if you do NOT open your eyes.
…And Barney Frank gets re-elected. All we can do is laugh…
BTW.. a 2004 UCLA study showed that Govt. Intervention during the Great Depression prolonged the Great Depression by 7 years. I suggest everybody look it up and keep this quote from the study in mind:
“The fact that the Depression dragged on for years convinced generations of economists and policy-makers that capitalism could not be trusted to recover from depressions and that significant government intervention was required to achieve good outcomes,” Cole said. “Ironically, our work shows that the recovery would have been very rapid had the government not intervened.”
Here is the link –>
http://newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx?RelNum=5409
Enjoy the Change — The people getting bailed out certainly are!
Why i am not surprised.
Well, as far as i understand the bail out plan “was calling to help the home owners” - and guess who is the real home owners- the banks. So they are helping each other.Also keep in mind that in most recent statistics mentioned all over the election and media about 40% of Americans DOES NOT PAY ANY TAXES. Having said that , the rest of the Americans ( excluding the top 1%) will foot the bill for the bail out with a greater share.
So the average person like me who is taxes at 28-32% tax rate will end up paying more and more.This is not an advertising for the book but has any one read the book A sense of Urgency? If you did then you know what i mean.
Thank you
Dan Sokolov
Ahhh..
Higher real estate values mean higher property taxes. Higher property taxes mean more money to the local governments. More money to the local governments means more money to the national government.
Lower real estate values mean lower property taxes. Lower Property taxes means less money to the local governments. Less money to the local governments means less money to the national government.
PUT it all together after 9/11.
Propping up home values and keeping them from falling any further has nothing to do with the guys in Washington caring about you. (I’ve met some of them.. they really don’t care about you… trust me.) It has more to do with making sure the tax revenues are coming in so they can live the high life.
Problem is.. the High Life guy is coming around taking away their money. Just check out the budgets of pension strapped cities such as Chicago if you want to see what I mean or maybe entire states such as California for that matter.
There are some cities scared crapless right now and want money… Just check out the bailout bill for proof of that.
And geez.. that printing machine is going to run out of paper and ink eventually.
Medicaid and Social Security?? Oh boy… let’s not even bring that topic up, shall we??
The one program I am all in for is increasing the budget for education so people can get a clue of what is going on. (Oh.. alternative energy also so we stop sending $700 Billion outside of our borders every year.)
Legal bills for the Mortgage Executives are the least of our concerns.
(It’s really, really sad when the Real Estate Bubble blogs have more pertinent information then Real Estate Associations by the way.)