Bank of American appears to have written the Dodd-Shelby banking bailout bill

[TheBreeze]

Check out this story from Mr. Mortgage:

http://mrmortgage.ml-implode.com/2008/06/21/bofa-perhaps-countrywide-wrote-dodd-shelby-bailout-this-news-must-get-out-there/#more-147

It looks like Bank of America wrote the $300 billion banking bailout bill. Hopefully this bill will either get shot down or Bush will veto it. Senators Dodd and Shelby should be forced to resign.

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Here’s some more analysis of the bill that I posted below in a response to esmith:

This is the first time I hear that the bill offers any kind of bailout to the banks. We’re talking about the bill where banks must voluntarily accept the payoff of up to 85% of market value of the house so that FB’s could refinance their loans with FHA, right?

Same bill. Here’s a link to the actual language of the bill:

http://banking.senate.gov/public/_files/…

Search for ‘300,000,000,000’ to see the language regarding the total amount of mortgages that can be insured under this bill.

I couldn’t find any language about the 85% of market value, but there is some language about insuring up to 90% of the appraised value on page 378.

This bill makes absolutely no sense. Why would a bank sell a mortgage for 85% of the appraised value of the asociated property when, if the appraisal is accurate, the bank could just foreclose and sell the property for 100% of the appraised value? The only reason I can see to do this is if the appraisal is wildly overvalued.

I’m sure what will happen is that appraisers will just value the property at whatever the value of the original mortgage was and the banks will only have to take a 15% loss as opposed to a 30%, 50%, 60%, or however big the real loss is. That’s why this bill is a crock.

The taxpayers won’t be out $300 billion with this bill, but we’ll be out some significant percentage of that amount — probably around $150 billion to $200 billion or so as the banks will just dump their worst mortgages to the taxpayer.

[SD Realtor]

I am pretty sure Bush will blow it out.

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

[SD Realtor]

I am pretty sure Bush will blow it out.

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

[SD Realtor]

I am pretty sure Bush will blow it out.

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

[SD Realtor]

I am pretty sure Bush will blow it out.

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

[SD Realtor]

I am pretty sure Bush will blow it out.

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

[TheBreeze]

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

Yeah, it would be nice if we could get an Obama presidency with a Republican Congress. I don’t see that happening, but if the Democrats keep this crap up we might see Republicans retaking Congress in the mid-term elections.

[TheBreeze]

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

Yeah, it would be nice if we could get an Obama presidency with a Republican Congress. I don’t see that happening, but if the Democrats keep this crap up we might see Republicans retaking Congress in the mid-term elections.

[TheBreeze]

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

Yeah, it would be nice if we could get an Obama presidency with a Republican Congress. I don’t see that happening, but if the Democrats keep this crap up we might see Republicans retaking Congress in the mid-term elections.

[TheBreeze]

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

Yeah, it would be nice if we could get an Obama presidency with a Republican Congress. I don’t see that happening, but if the Democrats keep this crap up we might see Republicans retaking Congress in the mid-term elections.

[TheBreeze]

All I can say is, just wait until Obama is in the white house. You ain’t seen nothing yet with regards to bailouts.

Yeah, it would be nice if we could get an Obama presidency with a Republican Congress. I don’t see that happening, but if the Democrats keep this crap up we might see Republicans retaking Congress in the mid-term elections.

[CA renter]

Contact your representatives and tell them that you know BofA is behind the bailout bill and you WILL NOT vote for anyone who favors any kind of lender bailout/taxpayer guarantee of mortgages.

Find your representatives here:

http://www.congress.org/congressorg/home/

[CA renter]

Contact your representatives and tell them that you know BofA is behind the bailout bill and you WILL NOT vote for anyone who favors any kind of lender bailout/taxpayer guarantee of mortgages.

Find your representatives here:

http://www.congress.org/congressorg/home/

[CA renter]

Contact your representatives and tell them that you know BofA is behind the bailout bill and you WILL NOT vote for anyone who favors any kind of lender bailout/taxpayer guarantee of mortgages.

Find your representatives here:

http://www.congress.org/congressorg/home/

[CA renter]

Contact your representatives and tell them that you know BofA is behind the bailout bill and you WILL NOT vote for anyone who favors any kind of lender bailout/taxpayer guarantee of mortgages.

Find your representatives here:

http://www.congress.org/congressorg/home/

[Author]

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