Tesa

Accounting for Losses at BofA and Fannie

Lets not forget Fanny and Freddie were obliged by the law to purchase mortgages that BAC and other banks had issued so most of these banks have passed on quite a bit of their toxic assets to the public and namely Fannie and Freddie for years.

The speculation in housing market was so wild that American banks were still holding on to massively more toxic assets that they could dump on public accounts. BAC has been subsidized to neutralize its losses so it is very possible that it is playing games to extract more cash the public by extracting more cash through tax cuts by claiming ownership of the same toxic assets.

These bank will never stop extracting cash from public through predatory mortgage lending business . Americans are better off cutting their losses now and remove publicly subsidized mortgage business from private banking forever because the business is funded through interest rates funded by public that are sold back to them with a hefty cost.

Fannie Mae Plus Goldman Plus Tax Credits Plus U.S. Treasury Add Up to Big Mess

Basically these banks:

- have passed their losses to the public
- they have traded against worthless leverage assets that they have dumped on the public
- they have received a subsidy from public to prevent their collapse and in return they have rewarded their executives with bonuses

And now they want to extract more cash from public through :
- further tax subsidy and taking those collapsed assets
- To either sell them again back to the public through the back door or hold on to these assets and jack them up and profit from them.

It is obvious that privatizing Fannie and Freddy has been very costly for American public. There is no way that public ownership of mortgage business would have cost the American public this much losses over and over.

The mortgage vending that is virtually subsidized by the public should be removed from private banking because they use this business to dump their losses on public using multiple paths.

Fannie Mae Needs $1.7 Billion in New Treasury Capital

The same saga that caused the collapse of banking system is continuing. Fanny/Freddie were hold the bags for default prone loans that were dumped on them. The banks are likely to be still trading those issues and making profits because they know what they have unleaded.

Fannie Mae: Trading Derivatives...and Losing

There is no field that is growing money other than government money that they are harvesting right now. Goldman is harvesting government cash be it through AIG, be it through Fannie/Freddie or any other bank that the government has rescued and they would use the cash the government gave them to do take more of their money.

Government has become the counter party for these banks and the profits are pretty much taxpayer cash.