http://www.nypost.com/p/news/business/backdoor_bailout_LifHfVSMFLoTmCmVxZdfuN "I'm concerned that the settlement between Fannie Mae and 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," Congresswoman Maxine Waters (D-Calif.) said in a statement yesterday. "If Fannie and... [more]
http://www.nypost.com/p/news/business/backdoor_bailout_LifHfVSMFLoTmCmVxZdfuN
"I'm concerned that the settlement between Fannie Mae and 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," Congresswoman Maxine Waters (D-Calif.) said in a statement yesterday.
"If Fannie and Freddie had really pushed hard on this settlement, it would have really caused problems for BofA," Edward Pinto, resident fellow at conservative Washington think tank American Enterprise Institute, told The Post.
"This [settlement] is a standing subsidy that has to be worth $10 billion or $15 billion for [BofA]," Christopher Whalen, the founder of Institutional Risk Analytics, told The Post.
"The real juice here is that BofA did the government a favor. They bought Countrywide and Merrill Lynch without a bankruptcy and saved the system, and this [mortgage settlement] is a quid pro quo," Whalen said.
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