During the 2003 -- 06 boom years, three agencies, The Federal Deposit Insurance Corp., the Office of Thrift Supervision, and the Office of the Comptroller of the Currency gave out millions of dollars in bonuses to regulators of these agencies.

The bonuses were supposedly given out for "superior" performance. Records show that at least $19 million in bonuses was awarded.

Continue reading Government Gave Bank Regulators Millions in Bonuses During Financial Meltdown

Government Gave Bank Regulators Millions in Bonuses During Financial Meltdown originally appeared on BloggingStocks on Fri, 19 Mar 2010 16:20:00 EST. Please see our terms for use of feeds.

Bloomberg reports this morning that Treasury Secretary Henry Paulson and President George Bush may announce as early as tomorrow that negotiations between Federal regulators and U.S. lenders will result in a five-year freeze on subprime mortgages. Paulson will brief House Republicans today on the plan, according to Bloomberg.

The deal comes down right in the middle of what the Office of Thrift Supervision wanted (3 to 5 years) and the FDIC wanted (5 to 7 years). The details about the deal are still pretty sketchy, but at least some people who have subprime mortgages will be helped. Most of the mortgages involved in this deal started at about 7% to 9% and are due to reset to 11% to 13% over the next two years, throwing many borrowers who can't afford the higher payments into foreclosure.

Analysts estimate that about 100,000 subprime loans will reset at a higher rate every month for the next two years. Credit Suisse Group estimates that right now, 30% of borrowers with subprime ARMs are behind on their mortgages, even before the reset. The FDIC puts the number at 20%. Regardless of the number, these borrowers probably won't be eligible for the freeze in rates.

Continue reading Five-year freeze on subprime rate could be announced tomorrow

Five-year freeze on subprime rate could be announced tomorrow originally appeared on BloggingStocks on Wed, 05 Dec 2007 10:00:00 EST. Please see our terms for use of feeds.