FHLB's $51.5 billion in advances to WAMU

[Vernon Martin]

From Mr. Mortgage at Implode-o-meter:

"Through sources, I have learned that the San Francisco office of the FHLB is currently reviewing all of their WaMu collateral they lent against. The San Francisco office has $51.5 billion of advances outstanding to WaMu as of March 31st, which is the second largest amount to a single bank in the entire system. WaMu has admitted this is happening but won’t make any comments about the FHLB’s opinion on the quality and value of their massive portfolio “exotic” loans such as Pay Option ARMs, subprime fixed and ARMs, HELOC’s and intermediate-term ARMs it lent against.

However, sources inside the FHLB have said they are “concerned” with the quality of their portfolio, and rightly so. It is absolutely no secret to anyone that Pay Option ARMs, HELOCs and subprime loans in bulk are worth pennies on the dollar and have not had a decent bid in well over a year.

Key to this story is next month’s regularly scheduled FHLB annual audit by the Federal Housing Finance Board (FHFB), in which the FHLB has to prove that the money they lent to WaMu is backed by collateral buck for buck. If it is not, they have the right to ask for more collateral."

 

[Randolph Kinney]

The end is near.

 

[Roy Courtney]

Backed by collateral buck for buck! Ha Ha I'll bet you could multiply that $51.5 billion by ten and our government would say everything is just fine! The very last thing on this earth that the US government wants is for the average guy/gal on the street to know what shape our economy is in. Remember how Shumer was ripped? Gee, all he did was tell the truth about Indy! (Indy is toast, not because of foolish lending practices or **** poor management but because Sen. Shumer made a statement) Bull$hit! Good Info though Vernon.

 

[Crunch Hardtack]

The government, try as they might, just does not have enough fingers to plug all the holes in the dike. They need to let some of these banks just go bye bye.

 

[Roy Courtney]

Just because I am a bit lazy I did not look up the exact salaries for President Bush or the members of congress. To the best of my memory their salary is in the few hundreds of thousands. Hey, and we are talking about some real important people! But they CANNOT wait to bail out a poor, pitiful guy like Richard Syron CEO of Freddie Mac who received 19.8 MILLION dollars in salary in 2007 while Freddie lost 1/2 of it's stock value. He did not make nearly as much as the dude at Fannie Mae!

Now I have had some bad years in business but I have NEVER lost BILLIONS in a single quarter! (Never received millions in salary either) Who do I need to see for MY bailout? Why would our government officials who earn a few hundred thousand think they should spend our tax dollars to bail out FNMA or FRE? Even Mazillo sold several hundred million dollars of stock in the last year at Countrywide while people lost their homes left and right! Man, it's time for some changes! (What would you do with 19.8 million dollars in salary for one year?)