The SEC claims Goldman Sachs and one of its top officers misled investors by not disclosing that hedge fund manager John Pauson, who made billions betting against the housing market, selected the assets that went into a complex security called “Abacaus.” How does John Paulson relate? Well, ladies & gentlemen, he bought (with friends) the remnants of Indymac Bank. He was also in September 2008, prior to his purchase of the bank testifying before Congress on how to develop financial reform regarding the subprime mortgage lending- which he helped create. How odd.
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To read about the Time Magazine article from November 2008, CLICK HERE.
IndyMac Attack: Did Schumer, Paulson, Soros, and the CRL Kill the Bank and Profit From Its Collapse? by Andrew Mellon
I have been saying this was in the cards from the beginning since July 2008. Now maybe it will come out in the dirty laundry being aired.
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This article gets particularly interesting on page two.
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The players in this Indymac- now OneWest Consortium:
Steve Mnunchin – Goldman Alum – Billionaire
John Paulson – Goldman Alum – Billionaire
J. Christopher Flowers – Goldman Alum – Billionaire
Robert Leeds – Goldman Alum – Billionaire
Michael Dell – Dell Computer – Goldman Client – Billionaire
George Soros – Big Goldman Client – Billionaire
There is some evidence that the FDIC has had some “sellers remorse” on the sale of Indymac assets. On 2/21/2010 they did a $2 billion deal where they sold more underwater mortgages. Based on the over collateralization of that transaction it would appear that similar pricing (haircuts) to the OneWest discounts were established. There was a big difference between the OneWest deal and the CMO that was recently done. This time around the FDIC kept the equity. What upside is in the portfolio is theirs to keep. The FDIC kept the equity on a $2b deal but gave it away to One West in a $16b deal. Way to go JP&Co.
There has been some criticism of the FDIC/OneWest deal. Some have suggested that the new owners of the Indymac mortgages have not been treating the old customers very well. Never mind that, what about the depositors who owed nothing to the bank, but lent it to them to give to bad debtors. Now they want to give the deadbeats yet another chance to default.
LA Times reporter By Jim Puzzanghera writes about how the OTS’s and FDIC’s lack of oversight and willingness to turn a blind eye to the obvious reckless practices caused the collapse of Washington Mutual.
Further Jim writes “The OTS gets the most heat because it was WaMu’s primary regulator. The agency, which supervises savings and loans, also has been criticized for its lax oversight of IndyMac Bank, a Pasadena lender that failed in 2008.”
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John Bovenzi says “Indymac was messy”. Having lost many thousands of dollars myself, I’ll say.
Question…Where did all the depositor money go? Answer…Probably funding bad Fannie Mae and Freddie Mac home loans foe people who did not save for their future, but just gambled on it. I find it really odd how those people still make out (who took loans they could not repay) but the saver-DEPOSITOR loses!
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