Comments on: Schumer Demands Investigation of FHLB Loans to Countrywide

By: Anonymous

Anonymous — Tue, 27 Nov 2007 19:35:00 +0000

Maybe, just maybe, when Countrywide defaults on its FHLB obligations, the GSE will be allowed to fail instead of socializing the losses. The one problem is that most taxpayers are too ignorant to realize what is going on and will be made to feel like the gov’t is helping them….go figure!

By: Anonymous

Anonymous — Tue, 27 Nov 2007 16:08:00 +0000

i want to know who the bankers are on this deal? there should be a statute that prosecutes banks and thier bankers for advisory work that may on its face not be illegal but violates the spirit of the law. This is outrageous stuff but totally expected and this from somoen who has seen the corrupt inner workings from the inside

By: burnside

burnside — Tue, 27 Nov 2007 13:46:00 +0000

I saw the October Bloomberg piece when it went up online. Remarkably little attention to it in MSM.

How odd it is Schumer taking up the cudgel.

By: Independent Accountant

Independent Accountant — Tue, 27 Nov 2007 08:34:00 +0000

Was this only disclosed in Countrywide’s 10-Q filing? Why was it not disclosed immediately? This is another piece of evidence why Paulson is pushing MLEC. Paulson probably knew of this months ago.

By: a

Tue, 27 Nov 2007 08:20:00 +0000

Was the FHLB legally obligated to give the money to Countrywide once the latter showed up and asked for it? Or did they have discretion and could have refused?

Whatever the case, the FHLB should be trying to get its money back (and return the collateral) asap. Otherwise the taxpayer will be on the hook.

By: Mencius Moldbug

Mencius Moldbug — Tue, 27 Nov 2007 07:17:00 +0000

I have no joke – I just like saying “Custer Federal Savings & Loan in Broken Bow, Nebraska.”

Presumably their models proved that this many Indians could attack on the same day only once in 10,000 years.