Saturday, January 29, 2011

Encouraging Claw-Back, but It Falls Somewhat Short

The WSJ reported this morning that Fannie Mae and Freddie Mac received $20.9 billion over three years from US banks that they forced to buy back shoddy mortgages. The "largest target" for the recovery was Bank of America, which paid $3.1 billion to Fannie. Of those repurchases, $2.1 billion were loans sold by Countrywide Financial Corp., which BofA acquired in 2008.

Countrywide Financial is the bank that gave "Friends of Angelo", preferential mortgage loans to Senator "Chris" Dodd of Connecticut. Dodd was the chairman of the Senate Banking Committee until his "retirement" last year. I would describe his "retirement" (his term expired and he "chose" not to run again) as a dishonorable discharge. The man makes me embarrassed to have gray hair. Too bad we can't claw back the value of his salary and perks as the longest serving Senator in Connecticut history. (Nice job, Connecticut.)

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