Bank of America, aka Debt Man Walking, has a deal for you, the taxpayer.
The bailed-out, big bonus paying, subprime-loving, give mortgages to illegals who can’t pay them, Bank of America is selling 400,000 of their unwanted loans to Fannie Mae. They are trying to sell them with the lie that this is a good deal for us. Yeah, right, the good deal has an unpaid balance of $73 billion and includes 13% delinquency rates with more than half of these assets in the very tumultuous real estate market. What a deal.
I think this is what you would call a not-so-veiled bailout. Fannie and Freddie (the taxpayer’s albatross) are funded by the taxpayers and their assets are on the bottom of the asset pile, especially since Bernanke keeps having them buy more and more of the bad assets so the banks don’t fail.
Fannie, by the way, just asked the taxpayers for another $5.1 billion and Freddie Mac wants another $1.5 billion. These are also called bailouts. Read about it here: Future Money Trends