Thursday, February 11, 2010

IndyMac Debacle - Thank You FDIC

I've written nice things about Sheila Bair in the past, but at this point it is clear she's in over her head. She may have been a voice of reason, but her actions have left Americans worse off. Sheila Bair at the FDIC must go. I recently posted a link to an article about mortgages she obtained that didn't exactly have an ethical feel to them, now the final straw has been heaped on the camel with the revelations in the following video about loss-sharing agreements the FDIC negotiated with what is essentially a hedge fund owned by George Soros, John Paulson and Michael Dell. This video is shocking and it explains a lot. Turns out Principal Reductions on mortgages are taking place - but only for the hedge funds buying up the mortgages - there is no deal for the homeowner. If this video is true (and my experience says it is) than there needs to be a federal investigation, a resignation and finally a re-structuring of this deal (and others). You'll soon learn why we have a foreclosure crisis that won't abate.