Sunday, February 15, 2009

60 Minutes: World of Trouble

Heavy emphasis on the economy on 60 Minutes tonight... below is a 13 minute video on World Savings. They said it was the 2nd largest S&L in the country which made me scratch my head because I had not heard of it. Then the light bulb came on as it was (somewhere along the line) renamed Golden West. Ah, that name I know very well. Golden West was bought by Wachovia for $25 Billion in 2006 (talk about buying at the top!)... that transaction so hobbled the bank it had to be bought by (first) Citigroup and (ultimately) Wells Fargo; with taxpayers money backing the deal. If you are interested, on top of the taxpayer backing, Sir Hank Paulson snuck in a tax code change that created a huge windfall for banks buying other banks as part of the rush to fund TARP - details here [Nov 13, 2008: Washington Post - A Quiet Windfall for US Banks]

Of that $25 Billion, World Savings founders scooted away with $2 Billion ... no clawbacks here. Robin Hood in reverse working to perfection yet again.

I just hate when pundits (and politicians) say "how could we know, no one saw it coming"

[If you are not familiar with an option ARM - this was described in detail here --> [Aug 13, 2008: Option ARMs- Who Thought Up these Time Bombs?]]


Three years before the housing market crash, Paul Bishop says he warned his superiors at World Savings that many of the mortgages they were granting were misleading and predatory.

Watch CBS Videos Online

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012