I saw this clip the other day on the internet on how the FDIC is handling the losses on one bank… According to this clip, the FDIC bailed out IndyMac and shut its doors back in July of 2008. In March of 2009, the FDIC sold all the bad loans to OneWest Bank for 70% of their value and HELOC’s (helocs are lines of credit) at 50% of their value.
When watching this video, my blood begin to boil! This is the same public rip-off that we have been watching for years. Whether we have a republican/democrat in office, it’s all the same old story! OneWest Bank is owned by private investors with ties to the US treasury department. This means they did not have to sign up for the loan modification program that Obama passed a few months back — that program helps consumers in danger of foreclosure by modifying the terms of their loan. OneWest Bank has no incentive to help homeowners, and in fact, it has a lot of incentive to foreclose on the homeowners.
Here is a link to the article I am referencing: http://www.thinkbigworksmall.com/mypage/archive/1/32274. Please watch the video, read the blogs, and tell me what you think. I just don’t understand how we can get the housing market back on track if we don’t get the government out of the housing market.