We learn from Bloomberg BusinessWeek about Steven Mnuchin:
"Prior to SFM, he spent 17 years at The Goldman Sachs Group, Inc. as the Chief Information Officer. Mr. Mnuchin ..."Read the rest of the information here
Then there is this little tidbit below from the video:
View the video here
Read the full article hereHow Goldman is Still Robbing the Public - isthatwacked
Here is another example of how Goldman is robbing the public.
1. IndymacBank was seized by the FDIC (Federal Deposit Insurance Corporation) in July of 2008.
2. The assets of IndymacBank was sold to a company called OneWest Bank by the FDIC.
3. Who owns OneWest Bank you ask? That is Stephen Munchin. Yes the VP of Goldman Sachs – Stephen Munchin. Also, Goldman clients George Sores and John Paulson (these two guys speak for themselves).
4. All mortgages were sold to OneWest Bank by the FDIC for $0.70 on the dollar.
5. In addition, the FDIC guaranteed to cover between 80% and 95% of the losses that OneWest Bank may experience as the result of purchasing the mortgages.
Why is this so bad for you and me? Here is where it gets scary.
6. In case of any losses by OneWest Bank, the calculations are done on the ORIGINAL MORTGAGE VALUE and not what OneWest Bank paid for the mortgage.
Here is an example:
If the original mortgage was for $300,000. OneWest Bank paid $210,000 for it ($300,000x 0.7 – $0.70 on the dollar).
If the house goes into foreclosure or a short sale situation, then the property is put on sale. Let’s say the highest bid for the house in foreclosure is $200,000.
Technically, OneWest Bank lost $10,000 ($210,000 what they actually paid for the house to the FDIC minus what the house sold for $200,000).
Does the FDIC cover between 80% – 95% of the $10,000 that OneWest Bank actually lost? NOOOOOOOO! They guaranteed to cover 80% – 95% of the losses using the ORIGINAL MORTGAGE VALUE.
In this instance, let’s say the FDIC guaranteed 90% of the losses. So using those numbers, the actual amount that the FDIC pays OneWest Bank is $90,000. That is 90% of the difference between $300,000 (the original value of the mortgage) and $200,000 (what the house sold for).
What does OneWest net out from this deal?
So OneWest Bank gets:
$200,000 from the new buyer of the house.
+ $90,000 from the FDIC.
- $210,000 (what they paid to the FDIC).
=$80,000 on a $210,000 investment. A tidy 39% return on their money.
WOW, IT IS GOOD TO HAVE FRIENDS IN HIGH PLACES.
Oh by the way, OneWest Bank may collect more as it is asking the person walking away from the house to sign promissory notes for about $50,000. They are trying to collect more money from the original home owner.
IF THIS KIND OF MONEY CAN BE MADE FROM SHORT SALES AND FORCLOSURES, WHY WOULD OneWest Bank want to modify any mortgages for the current home owners?