Post by unlawflcombatnt on Aug 8, 2007 13:09:52 GMT -6
Below are excerpts from a Yahoo News article describing how Senator Schumer is pushing for a bailout of the housing and financial industry, under the guise of "helping" poor homeowners. Apparently Schumer's rich campaign contributors are wailing about how they may not be as super-rich as they are at present, if their irresponsible investments go bad. Some of them might have to sell one of their Leer jets or one of their yachts. Poor babies!
Regulators underestimate subprime risk: Schumer
By John Poirier
"Financial regulators may be underestimating the real risk of a spillover of the subprime home loan crisis into the broader mortgage and consumer credit markets, Sen. Charles Schumer said on Wednesday....
Schumer, and Senate Banking Committee Chairman Christopher Dodd, are urging OFHEO, the regulator of Fannie Mae and Freddie Mac, to consider easing caps on those companies' investment holdings to let them buy more loans in the troubled mortgage market.
Fannie and Freddie are the nation's two largest sources of mortgage finance. They have limits on their combined $1.4 trillion investment portfolio of mortgages, which generate a large share of their profits.
OFHEO imposed the temporary caps last year on the two home finance companies' investments as they emerged from accounting scandals.
Schumer said he is concerned about the inability of potential home-buyers with sound credit histories to obtain mortgages due to the current round of credit tightening...."
No, he's not. He's concerned about rich investors, hedge funds, and investment banks taking huge losses from their idiotic investments. Schumer wants to throw a lifeline to investors, not to homeowners.
Democrats could well lose their gains in the next election if they continue challenging Republicans as the party of Corporate Welfare.
Regulators underestimate subprime risk: Schumer
By John Poirier
"Financial regulators may be underestimating the real risk of a spillover of the subprime home loan crisis into the broader mortgage and consumer credit markets, Sen. Charles Schumer said on Wednesday....
Schumer, and Senate Banking Committee Chairman Christopher Dodd, are urging OFHEO, the regulator of Fannie Mae and Freddie Mac, to consider easing caps on those companies' investment holdings to let them buy more loans in the troubled mortgage market.
Fannie and Freddie are the nation's two largest sources of mortgage finance. They have limits on their combined $1.4 trillion investment portfolio of mortgages, which generate a large share of their profits.
OFHEO imposed the temporary caps last year on the two home finance companies' investments as they emerged from accounting scandals.
Schumer said he is concerned about the inability of potential home-buyers with sound credit histories to obtain mortgages due to the current round of credit tightening...."
No, he's not. He's concerned about rich investors, hedge funds, and investment banks taking huge losses from their idiotic investments. Schumer wants to throw a lifeline to investors, not to homeowners.
Democrats could well lose their gains in the next election if they continue challenging Republicans as the party of Corporate Welfare.