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Title: Father of Subprime Loan Confesses
Source:
Huffington Post
URL Source: http://www.huffingtonpost.com/2008/ ... -this-is-the-wor_n_126274.html
Published: Sep 17, 2008
Author: Sam Stein
Post Date: 2008-09-17 07:46:28 by Hypocrisy Cop
Keywords: None
Views: 124
Comments: 10
Greenspan: This Is The Worst Economy I've Ever Seen September 14, 2008 Former Federal Reserve Chairman Alan Greenspan offered a woeful outlook of America's economic situation on Sunday, saying the crisis with the country's financial institutions was as dire as he had ever seen in his long career... Much of the issue, Greenspan added, was the trouble in the housing market... The worst fire he's ever seen...and he struck the match.
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#1. To: Hypocrisy Cop (#0)
(Edited)
Alan Greenspin for President !!! Mr. Greenscum's remarks were recorded at his (new) home in the UNITED ARAB EMIRATES.
HOW is it that (you) the Private citizen is being touted as the debtor when the PRIVATE FED RESERVE loans CREDIT to other PRIVATE BANKS ???
You said that right. Not only has this creature earned the name, "Father of the sub-prime loan," but he also holds the title, "King of double-talk." He prides himself with these dubious titles. www.apj.us/051597WeirdAlGreenspan.html Can you picture "Crazy Al" and his mule-faced "blond" wife Andrea naked in bed, exchanging body fluids, then a cigarette, then some mushy pillow talk about what she is to report to the goyim in the morning on the TODAY Show, MSNBC's Morning Joe, and with Don Imus? I can't shake that perfect image: JOG and its "watchdog," JOM, making the beast of two backs. Now they'll have to be doin' it with a view of that funny looking harbor as the backdrop for their love nest. Eww! It's Great to be White!
That "young blond" that Crazy Al snagged is scary: She needs to go back to Make-Up, at least.
It's Great to be White!
Perhaps bedding Al made her look like that.
Same tribe?
Guess who exists?
Have a banana, Hannah
Indubitably. Here's more about the Father of Subprime Loans, "sitting atop the blame tree": www.independent.ie/busine...gets-serious-1321249.html Hunt for subprime mess culprits as the blame game gets serious By Suzy Jagger in New York Wednesday March 19 2008 WHO can we blame for Wall Street's mortgage and banking crisis the nightmare that has seen around €2 trillion wiped off the value of American homes in the past two years? Who can the one family in every 30 in Stockton, California, blame for losing their home? And to whom should Bear Stearns's shareholders direct their anger after Wall Street's fifth-biggest bank almost went bankrupt on Thursday afternoon? The culpable are spread across the whole gamut of America's political, economic and banking infrastructure. They trickle down from Capitol Hill with the policies devised at Washington's Federal Reserve Bank and head up the coast to Manhattan's Wall Street chief executives. Culprits Downstairs from the chairman's office lie more culprits populating investment bank trading floors, and the maths graduates in front of their Excel spreadsheets, designing ever more complex-structured debt products. The blameworthy also sit in the credit rating agencies who endorsed the debt and extend wide across America to the network of thousands of mortgage brokers and lenders who sold bad mortgages over the past decade. Sitting at the top of the blame tree, many look to Alan Greenspan, the former Chairman of the Federal Reserve, America's central bank. Under Mr Greenspan's leadership, the Fed continued to cut interest rates during the 1990s -- the cheap cost of borrowing helped inflate the housing market, with some states such as Florida and California experiencing doubling house prices over a five-year period. Cheap money and surging house prices also created fertile ground for mortgage brokers to push home loans that borrowers could ill-afford, in the hope that property values would continue to rise and homeowners could simply remortgage. Pushing the dream of universal home ownership, was former President Bill Clinton, whose policies helped encourage individuals whose low incomes and poor credit ratings should have prevented them from taking on mortgages at all. Chris Whalen, founder of the Wall Street consultancy Institutional Risk Analytics, also blames Washington for the design of America's mortgage industry. He said: "The real father of sub-prime is Congress for setting up Fannie Mae and Freddie Mac. Their existence effectively meant that the Government had the monopoly on mortgages. The banks had to scrabble around with what was left -- and what was left were jumbo loans [big mortgages] and bad credit quality debt." He explained: "Because of the way the market was structured, the likes of Bank of America and JP Morgan between 2004 and 2005 were so hungry for mortgage assets, they took market share from Fannie Mae and Freddie Mac." Countrywide and Bank of America, among the US's biggest mortgage lenders, stand accused of predatory mortgage lending, and of being complicit with mortgage brokers, who sold home loans aggressively to boost their commissions. In order to manage the higher risk associated with either very big or very shaky mortgages, investment banks needed a means of trading the debt on. They devised a means of pooling the loans, paying a credit rating agency to rate them, and the pools -- from which they could sell bonds -- became liquid and tradeable. In the 1990s Bear Stearns was the best -- now they are perceived as being the worst -- at designing these complex pools of mortgages to sell on. Bear Stearns, under the leadership of James Cayne, who resigned as chief executive earlier this year over the toxic securities, was the King of Sub Prime. Unlike its Wall Street rivals, Bear Stearns had a cradle to grave model -- they sold their own sub-prime mortgages, through their own retail lending arm. Bear Stearns was the market leader in creating new and ever more complex-structured debt and selling it on through its extensive fixed income sales teams. Joseph Mason, associate professor of finance at Drexel University, argues: "Bear Stearns was the most innovative, and by innovative I mean 'worst', at creating these complex instruments. They had a cradle to grave mortgage structure. They originated it, pooled it and sold it on." Professor Mason also explained that it was the likes of Bear Stearns, Lehman Brothers and Citigroup who, in 2001, tried to find ways of splitting out the worst bits of the mortgage pools and securitising them separately. In turn, they split out the worst of the secondary pools into a higher-risk set, then repeated the process into a third pool. "Bear, Lehman, Citi -- they were big in this space. It meant that they created a way to sell on high risk debt, which was crucial to be able to securitise further. They fed the bubble." Most of the structured debt products -- known as collateralised debt obligations -- were typically designed by less than five mathematics experts in their twenties at each bank, armed with a spreadsheet, as part of the fixed-income teams. Professor Mason argues that not only did the likes of James Cayne not understand either the debt products themselves or the risks they posed, but neither did the banks' heads of fixed income. "The heads of fixed income were more interested in whether they could sell the bonds, rather than how risky they were -- whether they would perform." Yesterday, Roland Arnall, the billionaire founder of Ameriquest, once America's biggest sub-prime mortgage lender rescued by Citigroup, was laid to rest. It may be some time before his legacy draws to a close. (© The Times, London) - Suzy Jagger in New York --- Note the date of this article
It's Great to be White!
Haven't heard much about this sleazeball Jew, Arnall, yet. He bought his way out of his own multi-billion $$$ predatory crime spree by supporting Bush for President and Schwarzenegger for Governor, with a pittance, then was rewarded with a Ambassadorship. He also helped found the Nazi-hunting Simon Wiesenthall Center in 1977, and was co-chair of the 2004 Republican Convention. --- mortgage.freedomblogging....uest-founder-arnall-dead/ Ameriquest founder Arnall dead March 17th, 2008, 2:13 pm · 24 Comments · posted by John Gittelsohn Roland Arnall, the founder of Orange-based Ameriquest Mortgage Corp. and the recent U.S. Ambassador to the Netherlands, died at age 68 in Los Angeles. Arnall died Monday of unknown causes, said Chase Beamer, a State Department spokesman. A family statement said Arnall died Monday at UCLA Medical Center, but did not release a cause of death, according to the Associated Press. Arnall, a Los Angeles resident, resigned as U.S. Ambassador to the Netherlands effective March 7, citing his son’s illness. Arnall, a major contributor to Republican Party causes and President Bush’s campaigns, was appointed Ambassador to the Netherlands in 2006 after Ameriquest and its affiliated companies agreed to pay $325 million to settle complaints of predatory lending by attorneys general in 49 states. Ameriquest was at one point the nation’s largest subprime lender, but the company closed almost all of its operations last year as the subprime lending industry collapsed. It’s wholesale operation Argent Mortgage was sold to Citigroup.
It's Great to be White!
#2. To: noone222 (#1)
Alan Greenspin...
>images.forbes.com/images/2002/05/09/greenspan_415x331.jpg">
#3. To: noone222 (#1)
Alan Greenspin for San Quentin ! ! !
#4. To: Hypocrisy Cop (#2)
#5. To: angle (#4)
#6. To: Hypocrisy Cop (#5)
#7. To: all (#6)
#8. To: Jethro Tull (#7)
#9. To: Jethro Tull (#7)
Same tribe?
#10. To: All (#9)
Yesterday [3/18/2008], Roland Arnall, the billionaire founder of Ameriquest, once America's biggest sub-prime mortgage lender rescued by Citigroup, was laid to rest. It may be some time before his legacy draws to a close.
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