Wednesday, January 13, 2010

A Big Danke to Deutsche Bank! But Bank of America, Well That's Another Story!

On the run here, trying to keep the shop open, but a quick update.

Deutsche Bank continues to shine as a transparent, intelligent, responsible organization. Not only did the nice woman who answered my email to their top guy in the US help out, but the guy she referred me to, in California, also was a champ. They're doing their best to help.

By the way, although DB is "the investor," DB doesn't actually own the mortgage backed securities that contain the GMAC second mortgage in question. But DB holds the certificate (or something like that), whatever the paper is that would reside with the owners -- who are probably insurance companies or pension funds or hedge funds.

GMAC was basically passing the buck when they said, "we are rejecting your offer because it's unacceptable to the investor." What they really mean is, "we can't accept it because we are trying to do our fiduciary responsibility." Now what it really means is that they probably get some slice of whatever settlements they negotiate, so they want to keep that slice as big as possible.

But to actually get a frank, intelligent, patient individual on the phone to explain all this is a breakthrough.

Now, as to Bank of America. On the one hand, BofA mortgage is trying to avoid losing everything on a mortgage that went south. That's the short sale. On the other hand, BofA credit cards is workinig to spoil the deal because of a unpaid credit card balance by the home owner, a credit card balance that is not in any way secured by real estate.

I FedEx'ed a letter to Brian T. Moynihan, pres. of Boa, and also sent him an email. There has been no response.

And BofA got a bailout.

And Deutsche bank didn't.

Capitalism didn't cause the subprime crisis.

Stupidity did...and also mismanagement, and bureaucracy....and the soul destroying, mindless reign of executives presiding over tens of thousands of oppressed cubicle dwelling minions who do their bidding....

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