Time to arrest hedge fund lowlife and confiscate all monies

Discussion in 'Wall St. News' started by stock777, Oct 24, 2008.

  1. DJ US Reps Send Scathing Letter To Hedge Funds, Call Hearing

    By Jessica Holzer


    WASHINGTON (Dow Jones)--Six U.S. House lawmakers sent letters to two hedge funds lambasting them for warning mortgage servicers against participating in government programs to modify delinquent loans.

    The lawmakers, who included Financial Services Chairman Barney Frank, D-Mass. and five other members of his committee, said they were "outraged" by a New York Times report describing efforts by Greenwich Financial Services and Braddock Financial Corporation to steer mortgage servicers away from such programs.

    According to the report, the hedge funds sent letters to banks and other mortgage servicers threatening to sue them if they participated in federal programs that renegotiated loans in a way that triggered losses for investors. Both funds have holdings of mortgage-backed securities that could be damaged by such loan modification.

    In a statement, the lawmakers called the funds' reported actions "irresponsible, antisocial behavior" that had prompted them to set a Nov. 12 hearing on hedge fund compliance with government efforts to prevent foreclosures.

    In scathing letters to the hedge funds, the lawmakers sent a clear warning for them to reverse course.

    "For the hedge fund industry, which has flourished so much in the past decade, to take steps so actively in opposition to what is currently in the national economic interest is deeply troubling and will clearly have serious implications for the rules by which we operate in the future if this posture of obstruction is maintained," they wrote.

    One of the hedge funds reportedly singled out the recently-launched Hope for Homeowners program in his letter to banks as having potential to cause harm to investors. The program, which was passed into law in July, is Frank's brainchild.

    It aims to allow strapped homeowners to refinance into more stable loans backed by the government - but only after mortgage servicers write them down to make them substantially more affordable.

    The lawmakers invited the two hedge funds to attend the hearing. In a separate letter, they also asked the industry's trade group, the Managed Funds Association, to attend the hearing and to report on other hedge funds who were engaged in similar efforts.

    "If we are not able to get voluntary attendance, then we will pursue steps to compel them," the lawmaker
  2. Nevermind the concept of 'Contract Law." It's so Twentieth century...

    Isn't the fact that Barney Frank has been in Congress since 1981 evidence that Massachusetts should have no national representation and should become a possession of the US?

    I mean, I am beginning to feel like I just woke up in a Banana Republic after falling asleep to Alan "Mr. Magoo" Greenspan's delusional mumblings 10 years ago.

    In answer to the original post.... It's time to arrest the facilitators and Fraudie Mac and Phonie Mae to start.
  3. Contract law is not a suicide pact.

    Get over it.
  4. This is the arrogance that is Wall St., and they will continue this, and be totally destroyed by Frank and crew. Wait till the anointed one shows up. NY will look like Havana with bad weather.

    Frank wants to cut the defense budget 25%. I wonder if he knows what Islamic Fundamentalists do to Gay men?
  5. Brandonf

    Brandonf ET Sponsor

    The only thing that shines more bright than Barney Frank's greased up ass before he's about to give it up to his boyfriend is his ignorance and arrogance.
  6. You never know, Frank may be hoping for some of that Islamic justice.

    Cheaper than hiring a Midnight Cowboy.

  7. This whole mess would have been avoided if hedge funds simply lived up to their names and HEDGED.

    The irony of this is lost on many.

    Hedge funds were originally conceived to avoid/mitigate losses. The best brains were hired - and like LTCM they imploded.

    You couldn't make it up.
  8. Cutten


    Arrogance + stupidity + complete ignorance of history & political realities. If an ant keeps prodding at an elephant, eventually it might get noticed and squashed.