Financial Institutions

Fannie and Freddie Charitable Donations?

03/30/12

I'm generally skeptical about corporate charitable donations.  My sense is that they are primarily a transfer of value from shareholders to managers, rather than a value-enhancing investment in goodwill.  So on the DC Metro, what did I see today, but a poster advertising the 2012 DC Servathon that featured the logos of a variety of corporate sponsors, including Fannie Mae and Freddie Mac.

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Principal Reduction and Strategic Default

03/26/12

Moral hazard, moral hazard, moral hazard....  How often have we heard that as a reason for why principal reductions can't be done.  As if it were the worst thing in the world.  

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Calling DeMarco's Bluff? Use the GSEs' Market Power to Force 2d Lien Write Downs

03/26/12

There's been mounting pressure on the acting head of the FHFA, Ed DeMarco to order Fannie Mae and Freddie Mac to undertake principal reductions.

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A Must Read on the Financial Crisis

03/21/12

Bethany McLean has a must-read article on Reuters about the role of the SEC's 2004 change in broker-dealer leverage requirements in the financial crisis.  The article thoroughly debunks the argument that "the SEC did it" by loosening broker-dealer deregulation. 

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Promoting Integrity in the UCC Article 9 Recording System

03/16/12

On January 1, 2011, Larry files a UCC-1 financing statement against David indicating David's equipment as collateral. At this point, David doesn't even know Larry, has not given him a security interest, and has not authorized this filing. On February 1, 2012, David meets and borrows money from Larry and signs a security agreement listing equipment as collateral (which, under UCC 9-509, automatically authorizes the filing of a financing statement against equipment). What is the relevant date for determining Larry's priority? The language of Article 9

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The Real Question re Goldman

03/15/12

Why doesn't Goldman have its employees sign non-disclosure agreements?

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I'm Confused

03/13/12

What, exactly, is so gosh-darn newsworthy and exciting about the fact that distressed debt investors exist, and want to buy claims in MF Global? 

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Lehman's Plan Goes Effective

03/06/12

Leaving one third of the historically significant insolvency case complete-ish (I count London and SIPA as the other bits).

Download The Notice

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BONY-Countrywide Settlement Removal Reversed by 2d Circuit

02/27/12

Lost in the attention to the state-federal mortgage servicing settlement is the other major servicing fraud settlement:  the $8.5B deal between BONY as trustee for various MBS trusts and Countrywide (Bank of America) over putback claims for securitization of mortgages that didn't comply with the requirements of the securitization documents.  

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