Mortgage Resolution Trust
Rumors are flying now that the Treasury is asking Congress to create a new Mortgage Resolution corporation to take the bad assets off the books of banks and other financial institutions.
“Privatize the profit, socialize the losses”
This plan will transfer TRILLIONS of debt and losses from banks that have made risky decisions to tax paying Americans. This isn’t the S&L crisis, these assets are not illiquid, they’re worthless. Unless the government is willing to force banks to take huge losses on a transfer to any trust we’re going to see loss rates near 80% of tax payer money. The taxes that will be needed to pay for these losses will be a massive burden for all of us.
[...] On the Financial Crisis Posted on 18 September 2008 by vijtable Privitize the profits, socialize the losses. [...]
Bob Rubin has stepped up to run Citigroup the former Treasury secretary and Goldman Sachs boss. Bobby McCann could run Merrill except Merrill’s problems are so vast and complex that it may have to bring in someone with expertise solely in mortgages and fixed income to save the joint. Stuck with about $40 billion in mortgage guarantees and a huge inventory of crummy mortgages.
While these two firms try to figure out how to right themselves, the clock is ticking. The mortgage paper these banks are stuck with sours by the day, and without rapid Federal Reserve cuts, we could see perhaps a doubling of the losses at both firms.
Bernanke may have to cut rates just to stave off a major default. Yeah, it’s that dire. Even with rate cuts, Merrill might have to be merged with a more solvent institution. Citigroup? Too big to fail, but not too big to suspend its dividend and be forced to merge with another large bank.
Solution: Put me in charge of overseeing an army of Loan officers that will modify the nonperforming mortgage notes that are salvageable. The balance of real estate will be marked to market and liquidated. Let’s connect this department to AGI, Lehman and the other companies with the same problem. I am 60 years old and have no other qualification other than I have owned my own mortgage companies for over 35 years and understand how to evaluate the difference between the aforementioned two types of nonperforming mortgage notes. I also know how to organize the army of loan office and the real estate agents to liquidate.
Dana Sorenson surfdana@sbcglobal.net 775 331-3001
I am the owner of the domain and business, MortgageResolutionTrust.com that you have mentioned in your commentary. I’m Glad to see the Feds have finally recognized the importance of a mortgage bailout plan that was originally devised by firm in Aug. 2007. Finally, the feds can begin to gain financial control over the housing crisis!
[...] step, an idea previously discussed here and here on this blog, is to setup a GSE which will purchase mortgage backed securities from Banks [...]
Well the original Mortgage Resolution Corporation was developed by ……… This guy out of the SW saw what was going to happen and the big banks tried to shut him up !
oh yeah forgot he started HRD in 1999 which became MRC