And, it all comes together, thanks to Examiner columnist Tim Carney:
“We call it the ‘Bank of America bill on steroids.'” A House staffer told me that, demanding anonymity, but speaking on behalf of aides to GOP members of the House Financial Services Committee. He was talking about the bill whose Senate version has been brought to the floor this week by Sen. Chris Dodd, D-CN, and Sen. Richard Shelby, R-AL. Dodd-Shelby would let mortgage lenders off the hook for bad loans, shifting the burden ultimately to taxpayers. Dodd has received approximately $70,000 in campaign contributions from Bank of America in the last year-and-a-half.
All the talk has been about whether or not Countrywide bought special treatment with its special loan rates for Dodd and others, but Bank of America PAC and Bank of America employees have been shelling out donations to Dodd in big doses, which wouldn’t be so interesting if it weren’t for the fact that Bank of America bought out Countrywide while it was in the throes of financial ruin.
Now, thanks to the bill Dodd’s bringing, Bank of America will be “flipping” Countrywide at the expense of the taxpayers:
Bank of America stands to profit most from a bailout. It will take on Countrywide’s bad loans, and under Dodd-Shelby, it could shift the worst ones onto the shoulders of taxpayers, via the Federal Housing Authority. Basically, Uncle Sam will buy Countrywide’s stinky loans off of Bank of America. Bank of America is kind of like an investor trying to “flip” a house: they buy a run-down property (Countrywide) for a discount, shell out some campaign contributions and earn some “sweat-equity” through lobbying. If Dodd gets his way, it will be a good investment for Bank of America.
Barney Frank is calling for the loans to be investigated by the Senate Ethics Committee, but the Senate rejected calls for delay of the bill by nine Republicans.
Another reason to think this bill a disgrace? A provision in it would put the federal government in the middle of each one of your eBay transactions. Sketchy loans and payola are one thing, but do NOT mess with my online purchases.
