Congress...Strong-Arm Tactics...Taxpayer Rip-off?

Quote

Critics Assail Congress for Using Subpoena Powers and Strong-Arm Tactics

On Oct. 23 last year, William Frey, the president of a company that puts together mortgage-backed securities, told the New York Times that he had been contacting banks and threatening to sue them if they renegotiated mortgages for homeowners facing foreclosure.

Providing better terms for homeowners, Frey explained, would mean reducing the value of the mortgage-backed securities held by investors like himself.

"Any investor in mortgage-backed securities has the right to insist that their contract be enforced," Frey, president of Greenwich Financial Services, told the Times.

Before the day was out, Frey received a letter from six members of the House Financial Services Committee who said they were "outraged" by what he'd said.

"Your decision is a serious threat to our efforts to respond to the current economic crisis," wrote Democrats Barney Frank of Massachusetts, Maxine Waters of California, Luis Gutierrez of Illinois, Paul Kanjorski of Pennsylvania, Carolyn Maloney of New York, and Melvin Watt of North Carolina.

read more here -
http://www.foxnews.com/politics/2009/05/27/critics-assail-congress-using-subpoena-powers-strong-arm-tactics/

Is this false outrage? Another distraction? A shell game?

After reading this article, I wonder why all those loans refinance in the TARP and recovery acts are failing...AGAIN. iirc 70% in trouble...

Was it to move the loans from the hedge fund block of business to Fannie/Freddie? Ensure that taxpayers get stuck with all the bad loans? The toxic assets?

Another screw in the national coffin?

Socialize losses (refinance bad loans and move them to Fannie/Freddie), privatize profits (clean up the hedge fund profit base/portfolio)? Ensure record profits for the hedge funds?

What is the breakdown of transferred mortgages? From X to Fannie/Freddie? Who are most of the loans coming from? What bank? Mortgage company? Hedge fund? How many from the big TARP/AIG recipients like Goldman?

jmho