Perry bet big on tax grants to subprime lenders

[mahatmakanejeeves]

Source: San Francisco Chronicle and Associated Press

Perry bet big on tax grants to subprime lenders
By JACK GILLUM, Associated Press

Associated Press October 3, 2011 01:28 AM Copyright Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Monday, October 3, 2011

(10-03) 01:28 PDT WASHINGTON (AP) --

As Texas governor, Rick Perry spent tens of millions in taxpayer money to lure some of the nation's leading mortgage companies to expand their business in his state, calling it a national model for creating jobs. But the plan backfired.

Just as the largest banks began receiving public cash, they aggressively ramped up risky lending. Within four years, the banks were out of business and homeowners across Texas faced foreclosure. In the end, the state paid $35 million to subsidize it.

An Associated Press review of federal mortgage data, court filings and public statements found that Perry downplayed early warnings of an impending mortgage crisis as alarmist. That's even as Perry's own attorney general would later investigate whether Countywide Financial Corp. encouraged homeowners to borrow more than they could afford.

As Perry offered $20 million in grants to Countrywide and $15 million to Washington Mutual Inc. — each blamed for having a major role in one of the country's most serious recessions — he took in tens of thousands of their dollars for his gubernatorial campaign.


Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/10/03/national/w012830D03.DTL

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Fair Use provision cited.

This article might explain something. A few months before Washington Mutual crashed, back in September 2008, it sold a whole bunch of shares at a sweetheart price to something called the Texas Pacific Group. I well recall, as I held shares of Washington Mutual. The shares were sold to TPG at a price below what they were selling for on the NYSE, so existing shareholders, like me, weren't any too happy about the deal.

Can someone please look into the Texas Pacific Group? It is now known as TPG Capital. Thanks.

About TPG

TPG Capital® (formerly know as Texas Pacific Group®) is a leading global private investment firm with over $47 billion of capital under management across a family of funds. Since the firm's founding in 1992, our investment philosophy has been to create value by investing in change - change created by industry trends, economic cycles or specific company circumstances. Our tradition of providing unique investment insight and value-added operating capabilities to companies undergoing change, as well as our comfort in dealing with complexity and distressed companies, differentiates us from many traditional private investment firms.

ETA:

Texas Pacific Group Survives WaMu Blow - Forbes.com

TPG loses $1.35bn over WaMu investment - Times Online

[SpiralHawk]

1. Republicon Welfare Socialism for the Rich (R)

As usual. While they crap all over the hungry and kick homeowners in the ass, tossing them into the street. Republicon Family Cesspool Values, Tricky Rickerster (R) style.

[madmom]

2. I shutter every time I think of how close I came to being one of those poor people. We wanted to

refinance so we could remodel. We wanted $75,000. They offered $160,000. We said we didn't need that much, they said all or nothing at all. We thought on it for awhile (because we really needed to remodel) but turned it down. They called us several times every day trying to get us to take the deal, we held fast. That was a close call:scared: