Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend

Printer Friendly Page Save As Favorite View Favorites (# of views)   No comments
General News

Bank of America Kisses Fannie - $10 Billion Illusion

By       Message Joey Piscitelli     Permalink

Related Topic(s): ; ; ; ; ; ; ; ; ; ; (more...) ; ; , Add Tags  (less...) Add to My Group(s)

View Ratings | Rate It

opednews.com Headlined to H3 1/8/13

Author 78277
Become a Fan
  (13 fans)


bank of america
(Image by Rueters)
  Permission   Details   DMCA
- Advertisement -
/>bank of america by Rueters

photo- Rueters

Bank of America has announced this week its latest act of supposed public sacrifice; it will pay Fannie Mae $3.6 Billion to buy back loans it "sold" to the US government from 2000 to 2008. As B of A pats itself on the back and CEO Brian Moynihan takes a bow to accept the latest banking award for martyrdom, the banks stock shares actually rose to $12.25.

- Advertisement -

The bank stated that the buy back and acquisition of the loans will result in the spending of approximately $10 billion dollars. But is B of A really kissing Fannie with this deal?

B of As last remarkable and monumental act of suspicious public sacrifice was when it purchased Countrywide Mortgage in 2008. B of A and Countrywide have been entangled in numerous settlements and lawsuits due to questionable mortgage practices, and the dust from the explosion of those documents has still not settled.

In March of 2012, B of A agreed to slash mortgages for 200,000 borrowers, as their part of a $26 Billion dollar settlement with the Attorneys General of 49 states. Other banks involved in that previous settlement were Chase, Wells Fargo, Ally, and Citicorp. At that time, the loans "sold" to Fannie Mae and FHA were not part of the settlement.

However in July of 2012, the bank had previously stated that it had $40 billion tied to faulty loans and foreclosure risk properties, and most of those loans had been unresolved for a lengthy period -- many since 2008.

- Advertisement -

In October of 2012, B of A announced it had approved approximately $16 Billion in customer relief programs under the National Mortgage Settlement, which also improved its share gains on the market. Those relief programs included equity relief, principal forgiveness, and interest rate reduction.

The outstanding principal balance for the recently acquired Fannie Mae loans by B of A is stated to be an estimated $300 billion. The bank has also agreed to pay an additional $1.3 billion in compensation for Fannies servicing fees. Bank of America additionally plans to transfer servicing rights to other mortgage servicers this year for about 2 million of those loans. The swapping will continue.

The ping pong game of shuffling hundreds of billions of dollars of faulty loans, and agreements to hundreds of billions in settlements has been staggering. The confusion involving the financial activities of the top 5 banks in the US, has left the average taxpayer in the dark concerning the true condition, and the future effect and outcome of the debacle.

Taking into account that the fed has subsidized Bank of America untold billions of dollars since 2008, the recent settlement by B of A to buy back loans from Fannie Mae seems ludicrous. The transfer of re-swapped loans and bailout money since 2008 appears intentionally confusing, if not deceptive. The real sacrifice is being made by the taxpayers, who bear the task of confronting the impending financial crisis due to the printing of trillions of US dollars used as a crutch.

For B of A, who utilizes its super powers to manipulate, and reinstates its ability to be "too big to fail" and "too big to jail", it's consistently a win-win situation. But there is no Bank that is a hero here; there is only a continued illusion.

- Advertisement -

 

- Advertisement -

View Ratings | Rate It

Joey Piscitelli is a 56 year old writer and child abuse victims advocate in the S.F. Bay Area. Joey is also a pagan witch, and a member of Mensa. Joey wrote the non-fiction book "A Witch Wins Justice" concerning his unprecedented jury court victory (more...)
 

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon



Go To Commenting
/* The Petition Site */
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
- Advertisement -

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Happy 75th - Golden Gate Bridge -A Bittersweet History

Bishop Salvatore Cordileone - Will He Admit He's Gay?

Sexual Abuse in Catholic Church- A Decadence of Crime- 1002-2012

Repressed Memory Case Tramples Sex Abuser Priest

Christmas and Jesus? Debunking, Paganism, & Conflicts Continue

Jimi Hendrix -- An Icon Who Helped Me Survive