Are you working at a non-depository financial institution?
Starting at :38
We will be providing a mechanism for putting non bank financial institutions out of everybody’s misery.
[Is Secretary Geithner smiling?]
There will be death panels enacted by this congress.
But they will be for non-bank financial institutions that will not be considered too big to die.
And I say that because we have this euphemism that we are going to be resolving these institutions. It has not been my experience that when someone says that they are going to resolve something, they kill it. We are talking about dissolution, not resolution.
We are talking about making it unpleasant for the entities…
Note: The underlining emphasis and [commentary] was mine of course.
I don’t know for sure what the future will hold, but it sure seems like the winds of change are starting to blow when it comes to how mortgages are originated.
Hat Tip Rob Chrisman (by far one of the smartest mortgage people I have ever followed) for sharing the video.
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Comments
5 Comments so far
Brian Brady
Frank’s talking about Wall Street firms that didn’t charter as federal banks (Goldman’s competitors). I think they’re more targeted at failing insurance companies, securities firms, and hedge funds rather than healthy conduit lenders but…
…you never know with the Central Economic Planning Board
Mark Madsen
Thanks for the video, Justin.
Brian, even though you pointed out what Frank may have been referring to, that fact that he leaves so much room for personal interpretation could lead most industry professionals to believe he is specifically targeting mortgage brokers.
Either way, it is amazing how loosely Frank throws around the phrase “death panels” during a time when fear and uncertainty can only add fuel to the crisis.
For the sake of stability in the MBS and Treasuries markets alone, I think congress should figure out a way to deliver a more constructive message that will give investors, as well as home buyers a little more confidence.
Jacob Nordby
Hey guys…
my personal opinion (and I’m a political agnostic, BTW) is that Barney Frank is like one of the political bully-boys out of Ayn Rand’s Atlas Shrugged. Power and the wielding of it has gone to his head and I don’t think that he is employing reason or temperance with his remarks anymore.
Justin McHood
@Brian,
Thanks for pointing out that it may not have been the mortgage broker/banker he was talking about.
The cause of concern in my world is the second thing that you mentioned… “The Central Economic Planning Board”.
If you work in any area of the financial world, it might be a good idea to at least be aware that change is coming — just as soon as a regulator feels like a change should come to whatever industry you happen to be in.
I was having that conversation last night with someone who works for Morgan Stanley.
@Mark,
Agreed. When you have the general consumer backing up generally the idea of “more regulation” - it is a shot of confidence to the legislators that they just might be able to do whatever they want and not get voted out.
@Jacob,
Good analogy. Thanks for commenting!
Brian Brady
“If you work in any area of the financial world, it might be a good idea to at least be aware that change is coming”
The Central Economic Board won’t last long; it’ll be extinct in about 14-15 months. All the authoritarians who’ve allowed The Fed to print counterfeit money will be voted out.