Did Bank of America Write the Housing Bailout Bill?

Monday, June 23, 2008 | 09:30 AM

Fha_maze


"We call it the 'Bank of America bill on steroids.'"
-Anonymous House staffer

> 

The staffer was referring to the Dodd-Shelby bill that would let mortgage lenders off the hook for bad loans, ultimately shifting the burden to taxpayers.

The Bank of America paper referenced is this document, a PDF marked Confidential and Proprietary, titled the "FHA Housing Stabilization."

This was first picked up by the NY Examiner, followed by the National Review Online, who noted that "the similarities between BofA's ideal bill and the bill before the Senate are obvious." Then lastly, an LA Times blog, LA Land, put all the separate pieces together with this post: Did Bank of America write the Dodd bailout bill?

The White House has now promised to veto the bill. That suggests that, barring any last minute changes, this Housing Bill looks to be DOA.

~~~

I don't understand why a realistic bill can't be hammered together. It should reflect the following realities:

Home prices remain elevated;

Artificially propping up home prices is counter-productive 

Those Homeowers who are in houses they cannot and never could afford are going to have to give up those homes and move;

The banks that made these bad loans to unqualified borrowers are going to have to take the writedowns; 

It is not the taxpayers responsibility to bailout borrowers who are in over their heads, or lenders that made bad loans.

How hard can that be? (Do I really have to do everything myself?)

>

UPDATE: June 25, 2008 10:55am

I see the Washington Post has discovered this story . . .

Vital Part of Housing Bill Is Brainchild of Banks   
Jeffrey H. Birnbaum
Washington Post, Wednesday, June 25, 2008; D01
http://www.washingtonpost.com/wp-dyn/content/article/2008/06/24/AR2008062401389.html

 

> 

 

Sources:
FHA Housing Stabilization
Bank of America, March 11, 2008
Download: BoA FHA Housing_Stabilization.pdf

Did Bank of America write the Dodd bailout bill?
Peter Viles
L.A. Land, June 21, 2008
http://latimesblogs.latimes.com/laland/2008/06/did-bank-of-ame.html

NRO Doc Drop: BofA-Scripted Bank Bailout Looks Awfully Similar to Dodd-Drafted Housing Bill   
National Review, June 20, 2008
http://corner.nationalreview.com/post/?q=ODJkN2Q3NTY0MjAwYjJlNTY0NTJmMWEzZTI1OGZjZTg=

Bank of America PAC money behind Dodd's Countrywide loan
Timothy P. Carney
The Examiner, Jun 19, 2008 1:37 PM
http://www.examiner.com/a-1449448~Bank_of_America_PAC_money_behind_Dodd_s_Countrywide_loan.html

Monday, June 23, 2008 | 09:30 AM | Permalink | Comments (41) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c52a953ef00e553835cb18834

Listed below are links to weblogs that reference Did Bank of America Write the Housing Bailout Bill?:

Comments

"The banks that made these bad loans to unqualified borrowers are going to have to take the writedowns"

Perhaps you have a better view out your window, are pigs flying ?
.

Posted by: VJ | Jun 22, 2008 8:43:14 PM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner