Thread: Fed Finally Reveals Some Toxic Bear Stearns Related Garbage

Saturday, April 03, 2010


Fed Finally Reveals Some Toxic Bear Stearns Related Garbage On Its Balance Sheet

Having lost two court cases in lawsuits filed by Bloomberg, Fed Reveals Bear Stearns Assets It Swallowed in Firm’s Rescue. http://www.bloomberg.com/apps/news?pid= ... A_RWY3IJ2I

In a 4:30 p.m. announcement in a week of congressional recess and religious holidays, the central bank released details of securities bought to aid Bear Stearns’s takeover by JPMorgan Chase & Co. Bloomberg News sued the Fed for that information.

The Fed’s vehicle known as Maiden Lane LLC has securities backed by mortgages from lenders including Washington Mutual Inc. and Countrywide Financial Corp., loans that were made with limited borrower documentation. More than $1 billion of them are backed by “jumboâ€

Bernanke and Geithner's noses are circling the earth. And the limited borrower documentation is a gentle way of saying No-Doc Liar loans, were bundled up, cut into pieces and sold to investors.
And how many of these loan recipients that could not pay fled over the border to the home country? I saw that in FL during the real estate boom. No lender asked any questions whether someone was here legally or illegally. They never checked the veracity of the little info the borrower provided.

Originally Posted by vortex

Bernanke and Geithner's noses are circling the earth. And the limited borrower documentation is a gentle way of saying No-Doc Liar loans, were bundled up, cut into pieces and sold to investors.
And how many of these loan recipients that could not pay fled over the border to the home country? I saw that in FL during the real estate boom. No lender asked any questions whether someone was here legally or illegally. They never checked the veracity of the little info the borrower provided.

you are so on the money. NINJA Loans were all over the local airwaves, radio and television

it went basically

no job; NO PROBLEM
no docs; NO PROBLEM
10 kids; NO PROBLEM
bad credit; NO PROBLEM

come on down; we have a deal for you

Before the chaos, I was a mortgage broker (checkered past.) I nearly broke up a marriage after running credit checks on a young couple. He had all kinds of credit problems which she had no idea existed. I could not give them a loan until they had resolved those -- the banks in those days would have laughed and hung up.