REUTERS: Banks to ask government to take bad loan risk: report (!!!!)

[El Pinko]

http://biz.yahoo.com/rb/080214/banks_mortgage.html?.v=3


Banks to ask government to take bad loan risk: report
Thursday February 14, 7:31 am ET

NEW YORK (Reuters) - The banking industry is proposing to members of the U.S. Congress and the White House that some of the risk of troubled mortgages should be shifted to the federal government, according to a report in the Wall Street Journal on Thursday.

One proposal has been advanced by officials at Credit Suisse Group (VTX:CSGN.VX - News) and would let the U.S. Federal Housing Administration guarantee mortgage refinancings by some delinquent borrowers, said the report.

The Credit Suisse plan would open the way for nearly 600,000 sub prime borrowers, many of whom are delinquent on their mortgages, to refinance into loans backed by the FHA, said the Journal, which cited a Credit Suisse spokeswoman.

The Journal said officials from JPMorgan Chase & Co. (NYSE:JPM - News) are also pulling together their own proposal to expand the number of homeowners who could refinance into FHA-backed loans.

[zanne]

1. El Pinko--I hate to tell you this, but...

You have a very bad case of dandruff! (cute picture)

[flashl]

2. See DU Post for related information

The Mother of All Rip-offs

[annabanana]

3. "Privatize the Profit, Nationalize the Debt!"

They have been playing this game for decades. And because Congress works for the companies.... YOUR great grand children will be paying for this...

[Kutjara]

4. Let me see if I understand this. The sleazy mortgage companies...

have been allowed to:

- Stuff their pockets with billions of dollars for the best part of a decade;
- Fuel an unsustainable property bubble through easy credit and dubious financial engineering schemes;
- Enrich their directors and shareholders beyond the dreams of Creseus;
- Operate with little or no regulation;
- Entice low wage earners into enormous debt burdens they have no hope of repaying;
- Avoid paying tax through incorporation in States of convenience;

And yet, when they manage to totally fuck up what is, in essence, a license to print money, it's the poor taxpaying wage slaves who have to bail them out?

A social safety net for corporate thieves. Who says America will never tolerate socialism? We have it right now...at least for corporations.

[katty]

5. corporate bailout-corporate welfare...we screwed you: you pay