Ok....so here is some interesting reading. It would appear that the “oh so wanted TARP money” isn’t so wanted anymore by some Banks. However, I am sure for those who “insist” they want to Some major financial firms are getting anxious about giving back the billions in U.S. government rescue funds they took hold of late last year. David Viniar, Goldman Sachs’ (GS, Fortune 500) chief financial officer, made headlines Wednesday when he voiced that very sentiment to attendees of a Credit Suisse conference, saying it would be easier for the company to run its business if it could pay back the $10 billion in capital it received from the government last fall. And in a statement to CNNMoney.com Thursday, Bank of New York Mellon (BK, Fortune 500), which received $3 billion last year, said it was looking to redeem the government’s investment “as soon as is practical.”

return the funds for reasons I am going to assume it places too much Big Brother Eye on them and accountability for the funds.. there will be a dozen standing in line with their hands out in their place! Below is the highlights of an article on CNN ( Robin Weirich )
These comments come at a time when public distaste for the nation’s banking industry is boiling over. Taxpayers are seething over the fact that major financial firms continue to pay lavish bonuses and make seemingly frivolous purchases after getting government aid.
Earlier this week, President Obama struck back, announcing that the government would limit executive pay for any institution that accepts government financial aid in the future from programs such as the Troubled Asset Relief Program, or TARP. ( Ooh… I sense part of the problem may be in that statement! Cap Executive Pay at this time? What could they be thinking! Now, they don’t want the money? Hmmmm…. smell funny to anyone? Robin Weirich )
Fearing that lawmakers will make further demands, it’s no surprise that Goldman may want to free itself from more regulatory influence. ( Do they need to say anything else? Robin Weirich )
But Goldman, or other banks for that matter, can’t just simply write the government a new check for the money they received last year. And even if they could, it might not be a good idea.
Goldman Sachs and the other top banks that were recipients of the first round of TARP funding, including State Street (STT, Fortune 500), Citigroup (C, Fortune 500), Wells Fargo (WFC, Fortune 500) and Bank of America (BAC, Fortune 500), weren’t exactly given a choice about signing up when the program was first announced in October.
Federal Reserve chief Ben Bernanke and Federal Deposit Insurance Corp. Chairman Sheila Bair defended the move at the time, saying it would help stabilize the shaky banking industry. ( We know how popular Bernanke is! Robin Weirich )
Credit market conditions may have improved somewhat since then, but it remains to be seen whether Goldman Sachs, or any other leading bank for that matter, is indeed healthy enough to shun government assistance and go it alone. Mark Lane, an equity research analyst who tracks Goldman Sachs and rival Morgan Stanley (MS, Fortune 500), which also received $10 billion in TARP funds, at Chicago-based investment firm William Blair & Co., is one disbeliever. “[Goldman] cannot fund their business on an unsecured basis,” he said “To say we don’t need TARP funds doesn’t make a lot of sense to me.”
Last quarter’s sharp downturn in the economy and dour capital markets activity rippled through the banking sector, resulting in billions of dollars in losses for many firms, including Goldman Sachs. Shares of most major banks have tumbled this year, as a result. What’s more, under the terms of the Treasury’s capital purchase program, a bank can only buy out the government’s stake as long as the money comes from an equity offering of a similar amount that meets government approval. ( Oops! Robin Weirich )
And in these market conditions, it seems highly unlikely that banks would be able to raise that much capital. So many investors have gambled on U.S. financial firms over the past year and a half, only to watch those shares suffer another steep decline just months, or even weeks, later. In addition, an offering of new shares would cause substantial dilution to the value of the holdings of existing shareholders, something that banks may not want to risk.
Ultimately Goldman and other banks simply don’t like being susceptible to the government’s bidding, according to one hedge fund manager, especially as the White House gears up to unveil its latest efforts to deal with the financial crisis on Monday. “What it really comes down to is Goldman Sachs does not have control of its own destiny,” said James Ellman, head of San Francisco-based Seacliff Capital, a hedge fund specializing in financial services. “The President of the United States does and the President of the United States will tell us in 3 to 4 days what Goldman Sachs’ options are.” ( And we are all very anxious to hear them, well except maybe some TARP recipients. Robin Weirich )
Robin Weirich CBW

I wanted to pass along, what I felt is a very ‘Snap Shop” of the subprime meltdown and some of the key players involved. While this does not cover everything, it is a reminder of what we have been thru over the past 18 months and the 24 - 36 months we yet have to go to dig ourselves out of this. I would appreciate ALL your comments and ideas for the follow up to this Blog as any and all Real Estate and Finance information we can pass along is a helpful tool in navigating today’s real estate market.. Robin Weirich CBW.
House of Cards and the Sub Market For the full article - below are highlights. ( Taken from CNBC )
INSIDE AMERICA’S SUB-PRIME MORTGAGE CRISIS
The BuyersCynthia Simons craved a better life for her family and wanted to leave the crime-ridden area of Compton, Ca. She thought her prayers were answered by a mortgage broker from her church who found the family a house in a safe neighborhood.
Simons dream house was too good to be true

The LendersLou Pacific worked for Quick Loan Funding. The company targeted people who couldn’t afford a down payment and had poor credit…so-called “sub-prime borrowers.” With no shortage of eager borrowers, business was booming and Quick Loan made millions of dollars.
Pacifica on what took place at Quick Loan Funding

The InvestorsIn a rare interview, CNBC’s David Faber speaks with one of the few savvy investors who bet against the mortgage-backed security fever – Dallas’s Kyle Bass - whose hedge fund soared 600% in just eighteen months.
Bass on his experience

The Federal ReserveFormer Federal Reserve Chairman Alan Greenspan defends decisions he made that critics say laid the groundwork for the crisis. Greenspan also admits that he was puzzled by the more complex mortgage-backed securities on the market.
Greenspan on what could have been done to prevent the crisis.

Then and Now! Check it out… Robin Weriich CBW

Your Mortgage Is Rejected. Don’t Shoot The Messenger!

What do you do if your friendly lender, invites you to sit down and apply for a mortgage, the very politely hurries you out the door empty-handed leaving you puzzled as they go and wash their hands and wipe off the chairs you were just sitting in! Well that is a bit extreme and you can read a previous Blog I wrote some time back regarding my dislike for credit scores, at: Caution Drama Queen Just Ahead
Now please don’t take the shove out the door personal. The Mortgage Bankers Association, or MBA, estimates that about half of all new mortgage loan applicants are being turned down. Though refinancing approvals remained static, the acceptance rate on mortgage applications suffered a 10% point drop, from 63% in the first half of 2007 to 53% in the first half of last year. Now further tightening of credit standards means at least half of mortgage-seeking consumers can’t squeeze through to acceptance, says the MBA.
Instead of wondering if you forgot to turn in your last video you rented, thus causing this problem; insant anger, denial or any of the usual emotions associated with rejection, the consumer who is intent on buying or refinancing should adopt a pragmatic approach, since clear-eyed determination may eventually land them a loan and they have NO choice.. so here’s how.
First start with getting to the bottom of the real reason. If you’ve submitted a formal application, federal law dictates that you’re entitled to a formal rejection. ( You will be surprised how many firms fail to follow through with this compliance item Robin Weirich ) Expect an “adverse action” notice, spelling out the reasons for turning you down, such as you forgot to turn in the video on time.. ( kidding, well sort of! Robin Weirich )
Nine Tips for Mortgages in 2009 / How to Read Your Credit Report / Mortgage Basics / Get Your Free Credit Report
If your home’s CURRENT value isn’t the issue, then may be your personal credentials, such as your creditworthiness, work history or debt load. When credit is the issue ( better toss in the towel until the industry wide shake up finally calms down and lenders regain confidence!! Robin Weirich ), an adverse-action notice is required, naming the credit reporting agency that provided the data on which the lender based its decision, according to Federal Trade Commission rules. You’re also entitled to a free credit report; see the FTC Web site for more information.
Given the odds of an approval, a lender may not require you to pay a few hundred dollars to submit a formal application, which includes the cost of a professional appraisal on the property. Instead, they may pull a credit score, letting you what you’re likely eligible for. ( If you work with a seasoned Loan Broker, you should be able to determine all of this “without” incurring any cost other than if you run your credit report through their agency and or if you and your Loan Broker is having a tough time coming up with Value, in which case your Loan Broker, should be able to communicate with a reputable appraiser to determine value before a site visit, this will keep your cost at a minimum. You should always question up front fees. Robin Weirich )
Fixing the problem is next! Qualifying for a mortgage isn’t a black & white issue, not that is ever had been. Instead, a different loan, with varying or adjustable rates may be available. If you don’t qualify at 5.5 percent, you may be able to qualify for a loan at 6 percent or 6.5 percent or even greater depending on your credit history. However, for many borrowers, refinancing, a need a certain rate to reach the monthly payment is the only way for a loan to make sense for them. You shoulld note that not only are rates higher for risky loans, but there are now upfront “point” charges dictated by Fannie Mae and Freddie Mac, the two big mortgage guarantors currently under government control. To learn more read: Look at other options… I want to hear your opinion on Credit and Credit Scores! I am not a fan of the credit scoring system having worked in the financial industry long before scores were ever adopted. Please note that one sure way to help avoid these types of issues in advance is to work both with an experienced Loan Broker and Real Estate Agent.
My next Blog will be on the “Media and role it played in the financial / bank melt down and I need your input.” Robin Weirich
Robin Weirich CBW