How Big is the Big Bad Bailout?

June 19th, 2008 by Peter Suderman

How much will Countrywide benefit from Sen. Dodd’s FHA bailout?  The Journal does the math:

If borrowers and lenders take full advantage of this new federal program, and Countrywide loans go south at roughly the same rate as those from other lenders, this suggests a potential taxpayer bailout of more than $25 billion for Countrywide-originated loans.

So here’s what we have: Sen. Dodd (and others with connections to the banking industry) takes two VIP loans from Countrywide’s exclusive programfor friends of its president. A few years later, Countrywide realizes it’s in hot water with some risky loans.  Subsequently, Dodd introduces a bill that would provide a massive bailout to the lender that gave him special treatment.  What a sorry story.

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3 Responses to “How Big is the Big Bad Bailout?”

  1. Sickle Says:

    Sorry, Peter, this just isn’t going to turn into the “scandal” you hope it will. I love how you ignore actual scandals that result in criminal prosecutions of your Republican friends, and girlishly sensationalize anything having to do with Democrats. Nonpartisan. Right.

  2. Bud Says:

    Shouldn’t these criminals be required to report these sweetheart mortgage savings as income, just like a broke homeowner has to report the amount waived in a short sale by the mortgage bank as income?

  3. Mister Guy Says:

    Amen Sickle…amen…

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