Cats and Dogs
(Summer is s-l-o-w, but I still have GSE opinions)
August barely has two weeks left and I guess there is time for court decisions from Judge Sweeney, the Lamberth appeal, or the Delaware case, but summer blahs seem to deaden all developments. And yes, it’s because most of the working world is on vacation, as well as the attendant people the principals need to issue their findings.
For you pessimists, I’ll remind that in August 2012, federal Judge Richard Leon did issue his opinion—after eight years of legal slogging--that there was nothing to the “securities fraud” allegations brought by investors against Fannie CEO Frank Raines, CFO, Tim Howard, and Treasurer, LeAnne Garmon Spencer.
One last note on the courts cases.
As my mind roams around all the GSE pieces, still believing the courts offer the best short term relief for GSE supporters, I wonder if President Obama’s parting gift to the nation, the middle income and minority voters who twice elected him, and to his own legacy—if the courts return a pro-plaintiffs decision—to instruct his Justice Department not to appeal the decision???
One can dream and hope.
I hope everyone closely is reading Tim Howard’s blog and his extremely informative answers to readers’ questions.
Tim doesn’t just rant (like some bloggers we know, harrumph, cough, cough), but provides “proofs” to support his statements.
In his recent work, he is crushing advocates (think Treasury and FHFA), who contend that the forced GSE sales of underwater loans is a smart business move. Ironically, Howard argues it is causing the Treasury/taxpayers likely future income, but when has Treasury ever worried about that?
Howard writes the “risk sharing” deals are badly designed, poorly priced, and that’s before you look at the justifying Treasury policy logic.
As I’ve written, given the same circumstance, I doubt any private financial services company would be selling those loans at those giveaway prices, unless their regulator was forcing them to reduce their portfolio for political PR and not business reasons.
If you haven’t become a Tim regular, read his recent articles and decide for yourself.
I am supporting Hillary for President, but I long have viewed Gene Sperling, her primary GSE advisor, as biased and not a critical thinker.
That feeling grew geometrically with news that Sperling—while in the Obama White house--borrowed several hundred thousand dollars (no exact figure because various federal reports don’t require them), at below market rates, from a prominent Washington lawyer who Sperling described as an “old friend.”
It was just bad judgment, Gene, as you probably know by now from the blowback.
But, before Sperling’s credit difficulties hit the news, there were rumors the Bernie Sanders insiders—at that time, still bidding with Hillary for the nomination—had Sperling on a short list of “bad guys.”
I don’t know what their issues were/are, but maybe his inside the campaign judgment was questioned? His current appearance in the headlines can’t help.
David Stevens is a “Hillblazer”
Media reports last week identified the Mortgage Banker Association chief David Stevens as one of several hundred people who have raised, i.e.” bundled,” since it wasn’t his personal contributions, over $100,000 or more for Hillary Clinton’s primary and general; election races. Good for him, since we support the same candidate.
But DS has—or seeks--a pretty high profile in the in ongoing GSE discussions and has steered his trade group to joining with the big banks and Republicans trying to stop this White House from the GSE recapitalization and Conservatorship release that many small lenders, the civil rights and social action groups are pushing.
How wise is it for a trade association heavy who needs bipartisan goodwill to get so profiled? Just sayin’.
One Man’s Opinion: Tim Mayopoulos and Heather Russell
I don’t know either of these individuals personally, but my initial instinct was “bank foul,” after reading that Heather Russell last month was fired as General Counsel at the Fifth Third bank HQ’d in Cincinnati, Ohio, because she was dating the Fannie CEO Tim Mayopoulus.
The pair are consenting adults, separated from their spouses, and once worked together at the same firm in the past. Fifth Third uses rival Freddie Mac for most of its securitization of conforming loans.
Both employers were informed by the principals of the dating arrangement, but only the bank felt it was a “legal matter” requiring sacking Russell despite the fact that Ms. Russell conducted no Fifth Third business with Fannie or its CEO.
Not my personal concern, I hope she sues the bank’s ass off and collects millions for wrongful dismissal.
Donald Trump and his presidential campaign
Surprise, I am not a Trump fan.
There is nothing I can add to all of the critical media commentary that describes his immature, thoughtless, selfish, and frontal lobe behavior as he seeks the highest job in the land, to be the leader of the free world, and to control the “nuclear football.”
But, what really hit me at the end of this tumultuous week was his Pennsylvania allegation, “The only way Hillary can beat me is if she cheats.”
Donald Trump is setting up a horrible self-fulfilling prophecy backlash which could become politically and racially ugly--including with some form of armed insurrection--given the ugly arms mindset his "posse/supporters" likely possess.
The outrageous Trump assault, delegitimizing the political process which produced his very candidate status, will need a massive bipartisan scrubbing of the mess Trump has made of our election process and his vile views about its winners and loser.
Trump’s tactics insure this election will not end on Nov. 9, no matter how many electoral votes the winner secures.