by Tanta on 2/05/2008 10:10:00 AM
Tuesday, February 05, 2008
I don't know why seeing the Chairman of the FDIC--that'd be the government agency that provides deposit insurance to banks and thrifts--on CNBC arguing with a billionaire investor about what is really in the best interests of billionaire investors is so damned funny, but this is classic teevee.
The Ross Plan, by the way, appears to involve the taxpayers buying a one-third participation interest in defaulting mortgages. That would mean that a private investor gets one-third of its principal back immediately, while the taxpayers get the right to collect one-third of a payment that isn't being made or one-third of foreclosure recoveries. But the beauty is that we know servicers will work harder to collect payments or maximize recoveries when the government is an investor in the pool, because it always works out that way, doesn't it?
OTOH, it's certainly more efficient than "mortgage food stamps."