OK Truthmatters

[Truthmatters]

bad information?


You mean that a LIE by the banks is just bad information?

 

[boedicca]

Not ONE person has ever explained WHY the Bush SEC head held back these regulations that were the LAW of our land.

why did they do it and why was it that the VERY years the laws were suspended were the years in which this mess was created by the banks.


all I get is bullshit in response

Please explain why the Dems in Congress (especially Frank and Dodd) prevented the Bus administration from putting stronger controls in place for Fannie Mae and Freddie Mac, which would have inhibited the growth and risk of subprime loans.

 

[Truthmatters]

So the banks could do whatever they wanted to do.

The Banks couldn't POSSIBLY be doing anything wrong because Obama and his Justice Department would have busted them already.

Oh really and how do you prosicute when the Bush admin held the laws back so they could not prosicute them.

 

[boedicca]

So the banks could do whatever they wanted to do.

The Banks couldn't POSSIBLY be doing anything wrong because Obama and his Justice Department would have busted them already.

Oh really and how do you prosicute when the Bush admin held the laws back so they could not prosicute them.

PROSICUTE? Is that a way of persecuting someone with a piece of prosciutto?

 

[Truthmatters]

Financial Crisis Inquiry Commission - Wikipedia, the free encyclopedia


The Commission reached nine main conclusions (directly quoted)[11]:
We conclude this financial crisis was avoidable.

"There was an explosion in risky subprime lending and securitization, an unsustainable rise in housing prices, widespread reports of egregious and predatory lending practices, dramatic increases in household mortgage debt, and exponential growth in financial firms’ trading activities, unregulated derivatives, and short-term “repo” lending markets, among many other red flags. Yet there was pervasive permissiveness; little meaningful action was taken to quell the threats in a timely manner." The Commission especially singles out the Fed's "failure to stem the flow of toxic mortgages."
We conclude widespread failures in financial regulation and supervision proved devastating to the stability of the nation’s financial markets.

"More than 30 years of deregulation and reliance on self-regulation by financial institutions, championed by former Federal Reserve chairman Alan Greenspan and others, supported by successive administrations and Congresses, and actively pushed by the powerful financial industry at every turn, had stripped away key safeguards, which could have helped avoid catastrophe. This approach had opened up gaps in oversight of critical areas with trillions of dollars at risk, such as the shadow banking system and over-the-counter derivatives markets. In addition, the government permitted financial firms to pick their preferred regulators in what became a race to the weakest supervisor

 

[boedicca]

Oh yes, Wikipedia. The unimpeachable source of all unbiased truths on the internets.

LOL

 

[Truthmatters]

Securitization - Wikipedia, the free encyclopedia


Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation (CMOs), to various investors. The principal and interest on the debt, underlying the security, is paid back to the various investors regularly. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS

 

[Truthmatters]

Oh yes, Wikipedia. The unimpeachable source of all unbiased truths on the internets.

LOL

[ame=http://www.youtube.com/watch?v=MjYJ7zZ9BRw]big lebowski - shut the fuck up donny! - YouTube[/ame]

 

[Truthmatters]

How did the banks get away with putting all that subprime into these triple A securities?

 

[boedicca]

bad information?


You mean that a LIE by the banks is just bad information?

Fannie Mae and Freddie Mac were lying about the composition of the loans they backed - the source of the lie is the government.


"Buyer Beware" is a good maxim for investing as well. When returns sound too good to be true, they always are.

 

[Truthmatters]

TM


http://www.usmessageboard.com/members/toro.html?tab=visitor_messaging#vmessage62541

Me


TM
http://www.usmessageboard.com/members/truthmatters.html#vmessage62542



http://www.usmessageboard.com/members/toro.html?tab=visitor_messaging#vmessage62545

First, I've talked about this on the board numerous times.

Next, yes the Financial Crisis still would have happened, though perhaps it wouldn't have gotten as big. Structures such as RMBS and SIVs increased demand, but the primary culprit in this is the Fed IMO for three reasons.

First, the Fed kept too much liquidity into the system. This created asset inflation as liquidity flooded into the mortgage and housing markets.

Second, because interest rates were so low, investors reached for yield and increased demand for the structures you mentioned. Had interest rates not fallen so low, institutions would not have demanded higher returns from more risky products. The Fed affects pricing across the interest rate curve by nailing down short-term rates, which drags down the long end of the curve if inflation expectations remain dormant. Lower mortgage rates mean cheaper mortgages which means more credit to pump up housing prices.

Third, because of Greenspan's repeated actions to bail out the financial system whenever it got into trouble, the market believed that he would do so in the future. This was known as The Greenspan Put. It led investors to increase the leverage on their investments, which contributed greatly to the forced liquidation that caused the implosion of the financial system.

I do think deregulation played a significant factor, but it was a minor one relative to the Fed. There is a long history around the world of financial deregulation and asset bubbles and collapses. This contributed to the crisis. But the reason why it almost certainly wasn't the primary factor was because there were housing bubbles around the world where structures and derivatives played a negligible roll.

Finally, there were many other factors, including the role of the GSEs, which is mainly at the feet of the Democrats. I think this is overblown by ideologues but it wasn't zero either. Other factors included excess savings in Asia which recycled back into the US mortgage market, fraud and people's own greed.

why do you refuse to address the real question.


what do you know about these broker rules the Bush admin held back for 8 long years?


the very same years that this mess was created.

then in 2007 they finally put them in place and Poof the whole thing came down on our heads.

That I answered the way I did demonstrates I understand the issue What you refer to did not cause the Financial Crisis.

Deal with these facts or admitt your the one who has no idea what happened.

 

[Truthmatters]

bad information?


You mean that a LIE by the banks is just bad information?

Fannie Mae and Freddie Mac were lying about the composition of the loans they backed - the source of the lie is the government.


"Buyer Beware" is a good maxim for investing as well. When returns sound too good to be true, they always are.

how many sub prime loans did the Fs write?

 

[boedicca]

bad information?


You mean that a LIE by the banks is just bad information?

Fannie Mae and Freddie Mac were lying about the composition of the loans they backed - the source of the lie is the government.


"Buyer Beware" is a good maxim for investing as well. When returns sound too good to be true, they always are.

how many sub prime loans did the Fs write?

They don't write loans, they buy them - and own an enormous share of the market.

 

[Truthmatters]

OCC: Bank Securities Activities: SEC?s and Federal Reserve?s Final Regulation R





Description: SEC’s and Federal Reserve’s Final Regulation R


As of May 17, 2012, this guidance applies to federal savings associations in addition to national banks.*

PURPOSE AND BACKGROUND

This issuance is to notify you that the Securities and Exchange Commission (SEC) and the Board of Governors of the Federal Reserve System (Board) have jointly issued final rules that define the extent to which securities brokerage activities of banks are subject to SEC regulation.1 The final rules, known as "Regulation R," will implement provisions of the Gramm–Leach–Bliley Act of 1999 (GLBA) that set forth certain exceptions for banks from the broker-dealer registration requirements of the Securities Exchange Act of 1934 (Exchange Act).2 In developing the final rules, the SEC and the Board consulted with the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC) and the Office of Thrift Supervision (OTS). When finalizing the rules, the SEC and the Board also considered the comments received on the proposed rules issued in December 2006. Regulation R supersedes the SEC’s previous related proposals issued after the enactment of GLBA.3

Prior to GLBA, banks were excluded from the definition of "broker" contained in the Exchange Act and were exempt from the Exchange Act's broker rules and registration requirements. GLBA provided that banks are excluded from the definition of "broker" only to the extent that their securities activities fall within one or more of GLBA's exceptions. These exceptions cover banks' securities activities in connection with third-party brokerage arrangements, trust and fiduciary activities, permissible securities transactions, certain stock purchase plans, sweep accounts, affiliate transactions, private securities offerings, safekeeping and custody activities, identified banking products, municipal securities, and a de minimis number of other securities transactions. To the extent a bank plans to engage in the business of effecting securities transactions for others' accounts and does not qualify for GLBA's statutory exceptions or the exemptions adopted by the SEC and the Federal Reserve, the bank will be required to either register with the SEC as a broker or will have to "push out" these activities to a registered affiliate or third-party brokerage firm.

 

[Truthmatters]

Fannie Mae and Freddie Mac were lying about the composition of the loans they backed - the source of the lie is the government.


"Buyer Beware" is a good maxim for investing as well. When returns sound too good to be true, they always are.

how many sub prime loans did the Fs write?

They don't write loans, they buy them - and own an enormous share of the market.

Thank you for admitting they were victims and not perpitrators

 

[Truthmatters]

SEC Votes for Final Rules Defining How Banks Can Be Securities Brokers
Eight Years After Passage of the Gramm-Leach-Bliley Act, Key Provisions Will Now Be Implemented
FOR IMMEDIATE RELEASE
2007-190
Washington, D.C., Sept. 19, 2007 - Ending eight years of stalled negotiations and impasse, the Commission today voted to adopt, jointly with the Board of Governors of the Federal Reserve System (Board), new rules that will finally implement the bank broker provisions of the Gramm-Leach-Bliley Act of 1999. The Board will consider these final rules at its Sept. 24, 2007 meeting. The Commission and the Board consulted with and sought the concurrence of the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, and Office of Thrift Supervision.

 

[Toddsterpatriot]

I will explain it YET again.


Before Gramm leach bliely act of 1999 banks COULD NOT sell securities.


after the bill was signed into law banks could sell securities.


The gramm leach bliely act had rules on WHO could be a broker of these securities.

In the past brokers had to have licenses.

Because the Securities and exchanges commitee ( SEC) which had a head appointed by Bush (Mr Cox) the SEC unders Bush fought back the implimentation of these broker rules.

This meant that the banks could all of the sudden sell securities and had NO rules covering who could be a broker and wether they had to act in a manner that was honest to keep their licsense from being revoked.

Now the banks could hire whomever they wanted to be a broker and train them however they wanted to train them.

These NEW brokers were under NO pressure to make sure their dealings met a certain level of honesty so they could retain their licsense.


The only ones they had to obey were their bank employers.


They did what they were told to do so they could keep their jobs.


IF they had to have a liscence to upkeep they would have told the banks NO when they told them to sell sub prime tainted securities to unsuspecting investors.


If they had said yes they would have risked jail and losing their licsence which would mean they would lose their jobs.


The little guy would have rebelled to save himself.

without the rules the little guy could only save themselves by doing the bidding of the boss.


The banks were making big money by hiding their sub prime from securities investors.


Its why they wrote so many even though they were NOT required to by law.


they were making money by cheating.

Look at the law suits.


with no broker rules there was NO way to keep these banks from doing this cheating.



That is what the Bush people wanted.

unfettered markets by gaming our LAWS.

they got their unfettered markets and we the people got what unfettered markets always produce.


a mountain of shit

Before Gramm leach bliely act of 1999 banks COULD NOT sell securities.

So what? We managed to build an internet bubble without banks selling securities, we would have still had a mortgage bubble without banks selling securities.
No it would not have happened without the broker rules being suspended for 8 years. The banks could not have hidden the sub prime into these mortgage securities without the broker rules being suspended. the brokers would have refused to selk the tainted securities because iut would have ruined their carreers and opened them up to prosicution.
IF they had to have a liscence to upkeep they would have told the banks NO when they told them to sell sub prime tainted securities to unsuspecting investors.

What about securities that weren't subprime?

they were triple A and were fine.

its when they hid the subprime in these triple A rated securities and LIED about them that they could dump them on unsuspecting buyers.

There were no losses outside of subprimes?
Is that your latest silly claim?

 

[Rat in the Hat]

why do you refuse to address the real question.


what do you know about these broker rules the Bush admin held back for 8 long years?


the very same years that this mess was created.

then in 2007 they finally put them in place and Poof the whole thing came down on our heads.

That I answered the way I did demonstrates I understand the issue What you refer to did not cause the Financial Crisis.

that is NOT an answer.


You must explain WHY the broker rules were suspended by Bush and why.

then you need to explain why these rules had NOTHING to do with the crimes

You better do this Toro, or she'll stamp her little feet and hold her breath until she turns blue.

 

[Toddsterpatriot]

Securitization - Wikipedia, the free encyclopedia


Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations and selling said consolidated debt as bonds, pass-through securities, or Collateralized mortgage obligation (CMOs), to various investors. The principal and interest on the debt, underlying the security, is paid back to the various investors regularly. Securities backed by mortgage receivables are called mortgage-backed securities (MBS), while those backed by other types of receivables are asset-backed securities (ABS

Ahh yes, securitization.
It was invented long before Bush was elected President.
True story.

 

[Rat in the Hat]

Oh yes, Wikipedia. The unimpeachable source of all unbiased truths on the internets.

LOL

It's her GOLD Standard source.

Right after HuffyPuffyPost.