[Pages H5276-H5278]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
BANKSTERS CAUSE ECONOMIC MELTDOWN
The SPEAKER pro tempore. Under a previous order of the House, the
gentlewoman from Ohio (Ms. Kaptur) is recognized for 5 minutes.
Ms. KAPTUR. Mr. Speaker, one can sure ask: Is it more than
coincidence that the very Wall Street banksters who are holding up our
Republic are also causing the economic meltdown affecting community
after community and millions upon millions of our fellow citizens? Is
it any coincidence that these banksters are also the ones who are still
being rewarded day after day by their acolytes in Washington?
In today's Huffington Post, filmmaker Michael Moore in a piece
entitled ``Bernie Madoff, Scapegoat'' writes: ``Why did we allow those
same banks to create the scam of a subprime mortgage? Instead of
putting the people responsible in the cell block in Lower Manhattan,
where Bernie now resides, why did we give them huge sums of our hard-
earned tax dollars to bail them out of their self-inflicted troubles?
Bernie Madoff is nothing more than a scab on the wound. He's also a
continental distraction. Where's the photo on the list of the ex-
chairman of AIG, Merrill Lynch, Citigroup, JP Morgan Chase, Goldman
Sachs, Bank of America, and the list goes on.''
Michael Moore is exactly right.
Now the Center for Public Integrity reports the very list of the
``Who's Who'' of these exalted top bankster lenders responsible for the
subprime loan fraud and our economic crisis.
Let me place their names into the Record tonight, and what we know so
far of the extent of their damage. These 25 lenders are responsible for
almost $1 trillion of subprime loans, more than $7.2 million high-
interest loans made just from 2005 to 2007.
Together, these companies account for about 72 percent of the high-
priced loans reported to the government at the peak of the subprime
market.
But their Ponzi scheme had been cleverly set in place during the
1990s. We need to follow their tracks back to the start of this trail
of tears. Mr. Speaker, we need to go back to the roots of the subprime
scam that, once established, just kept getting juiced more and more
with each passing years. Securities created from these subprime loans
have been blamed for the economic collapse from which the world's
economies have yet to recover.
My question is this: When will these Wall Street wrong-doers be
brought to justice rather than rewarded?
A couple of names on the list you'll probably recognize. Everyone has
heard of Countrywide. Well, they floated about $97.2 billion of
subprime loans.
Chase Home Financial, JP Morgan Chase, they floated about $30
billion.
Citi Financial, Citigroup, they floated $26.3 billion that we know
of.
American General Finance, AIG, at least $21.8 billion and counting.
And Aegis Mortgage Corporation, they are number 25 on the list, at
least $11.5 billion.
Meanwhile, the special inspector general for oversight on the Wall
Street bailouts being paid out by our Treasury through our taxpayers
has now reported that the major institutions receiving tax dollars to
cover their losses are none other than the very same group.
I wish to place their names on the Record tonight as just one part of
the Treasury's report.
[[Page H5277]]
TABLE 1.1--TOTAL FUNDS SUBJECT TO SIGTARP OVERSIGHT, AS OF MARCH 31,
2009
[$ Billions]
------------------------------------------------------------------------
Brief Total Projected
Program description or projected TARP
participant funding funding
------------------------------------------------------------------------
Capital Purchase Program Investments in $218.0 $218.0
(``CPP''). 532 banks to
date; 8
institutions
total $125
billion.
Automotive Industry Financing GM, Chrysler, $25.0 $25.0
Program (``AIFP''). GMAC, Chrysler
Financial.
Auto Supplier Support Program Government- $5.0 $5.0
(``ASSP''). backed
protection for
auto parts
suppliers.
Unlocking Credit for Small Purchase of $15.0 $15.0
Businesses (``UCSB''). securities
backed by SBA
loans.
Systemically Significant AIG Investment. $70.0 $70.0
Failing Institutions
(``SSFI'').
Targeted Investment Program Citigroup, Bank $40.0 $40.0
(``TIP''). of America
Investments.
Asset Guarantee Program Citigroup, Bank $419.0 $12.5
(``AGP''). of America,
Ring-Fence
Asset
Guarantee.
Term Asset-Backed Securities FRBNY non- $1,000.0 $80.0
Loan Facility (``TALF''). recourse loans
for purchase
of asset-
backed
securities.
Making Home Affordable Modification of $75.0 $50.0
(``MHA'') Program. mortgage loans.
Public-Private Investment Disposition of $500.0- $75.0
Program (``PPIP''). legacy assets; $1,000.0
Legacy Loans
Program,
Legacy
Securities
Program
(expansion of
TALF).
Capital Assistance Program Capital to TBD TBD
(``CAP''). qualified
financial
institutions;
includes
stress test.
New Programs, or Funds Potential $109.5 $109.5
Remaining for Existing additional
Programs. funding
related to
CAP; AIFP;
Auto Warranty
Commitment
Program; other.
-------------------------
Total.................... $2,476.5- $700.0
$2,976.5
------------------------------------------------------------------------
Note: See Table 2.1 in Section 2 for notes and sources related to the
information contained in this table.
TABLE 2.2--EXPENDITURE LEVELS BY PROGRAM, AS OF MARCH 31, 2008
[$ BILLIONS]
------------------------------------------------------------------------
Section
Amount Percent (%) Reference
------------------------------------------------------------------------
Authorized Under EESA........ $700.0
Released Immediately......... $250.0 35.7%
Released Under Presidential $100.0 14.3%
Certificate of Need.
Released Under Presidential $350.0 50.0%
Certificate of Need &
Resolution to Disapprove
Failed.
TOTAL RELEASED........... $700.0 100.0%
------------------------------------------------------------------------
Less:
Expenditures by Treasury
Under TARP a
Capital Purchase Program
(``CPP''):
Bank of America $25.0 3.6%
Corporation b.
Citigroup, Inc........... $25.0 3.6%
JP Morgan Chase & Co..... $25.0 3.6%
Wells Fargo and Company.. $25.0 3.6% ``Capital
Investment
Programs''
The Goldman Sachs Group $10.0 1.4%
Inc..
Morgan Stanley........... $10.0 1.4%
Other Qualifying $78.8 11.3%
Financial Institutions c.
CPP TOTAL............ $198.8 28.4%
------------------------------------------------------------------------
Systemically Significant
Failing Institutions Program
(``SSFI''):
American International $40.0 5.7% ``Institution-
Group, Inc. (``AIG''). Specific
Assistance''
SSFI TOTAL........... $40.0 5.7%
------------------------------------------------------------------------
Targeted Investment Program
(``TIP''):
Bank of America $20.0 2.9% ``Institution-
Corporation. Specific
Assistance''
Citigroup, Inc........... $20.0 2.9%
TIP TOTAL............ $40.0 5.7%
------------------------------------------------------------------------
Asset Guarantee Program
(``AGP''):
Citigroup, Inc.d......... $5.0 0.7% ``Institution-
Specific
Assistance''
AGP TOTAL............ $5.0 0.7%
------------------------------------------------------------------------
Automotive Industry Financing
Program (``AIFP''):
General Motors $14.3 2.0% ``Automotive
Corporation (``GM''). Industry
Financing
Program''
General Motors Acceptance $5.0 0.7%
Corporation LLC
(``GMAC'').
Chrysler Holding LLC..... $4.0 0.6%
Chrysler Financial $1.5 0.2%
Services Americas LLC e
*.
AIFP TOTAL........... $24.8 3.5%
------------------------------------------------------------------------
Term Asset-Backed Securities
Loan (``TALF''):
TALF LLC................. $20. 2.9% ``Term Asset-
Backed
Securities
Loan
Facility''
TALF TOTAL........... $20.0 2.9%
------------------------------------------------------------------------
SUBTOTAL--TARP $328.6 47.0%
EXPENDITURES.
TARP REPAYMENTS f............ $(0.4) (0.1)%
BALANCE REMAINING OF TOTAL $371.8 53.1%
FUNDS MADE AVAILABLE AS OF
MARCH 31, 2009.
------------------------------------------------------------------------
Note: Numbers affected by rounding.
a From a budgetary perspective, what Treasury has committed to spend
(e.g., signed agreements with TARP fund recipients).
b Bank of America's share is equal to two CPP investments totaling $25
billion, which is the sum $15 billion received on 10/28/2008 and $10
billion received on 1/9/2009.
c Other Qualifying Financial Institutions (``QFIs'') include all QFIs
that have received less than $10 billion through CPP.
d Treasury committed $5 billion to Citigroup under AGP; however, this
funding is conditional based on losses realized and may potentially
never be expended.
e Treasury's $1.5 billion loan to Chrysler financial represents the
maximum loan amount. This $1.5 billion has not been expended because
the loan will be funded incrementally at $100 million per week. As of
3/31/2009, $1,175 million out of the $1.5 billion has been funded.
f As of 3/31/2009, CPP repayments total $353.0 million and AFP loan
principal payments (Chrysler Financial) total $3.5 million.
Sources: EESA, P.L. 110-343. 10/3/2008; Library of Congress, ``A joint
resolution relating to the disapproval of obligations under the
Emergency Economic Stabilization Act of 2008,'' 1/15/2009,
wwww.thomas.loc.gov, accessed 1/26/2009; Treasury, Transactions
Report, 4/2/2009; Treasury, responses to SIGTARP data call, 4/6/2009
and 4/8/2009.
So far, Bank of America has gotten $25 billion from our taxpayers.
Citigroup got $25 billion.
JP Morgan Chase got $25 billion.
Wells Fargo and company got $25 billion.
Goldman Sachs got a minimum of $10 billion but probably more with
their related interest in AIG which sat on their board, but of course
they are not telling us about that. They got, AIG, over $70 billion.
The amounts are staggering.
Morgan Stanley got $10 billion. And other financial institutions thus
far have gotten $78 billion as of the first quarter of this year. And
what have our taxpayers gotten? We have gotten the bills, and we have
gotten unemployment, home foreclosures, depleted 401(k)s.
And now let me ask a question, pretty please: Can Bank of America or
Goldman Sachs or JP Morgan or Citigroup or Wells Fargo or Morgan
Stanley tell us what they have spent the money on, because it is sure
not shaking out to communities. In fact, our Realtors tell us that JP
Morgan is the worst at trying to do loan workouts.
{time} 1630
Just Ohio needs $20 billion to refinance and restore neighborhoods
struggling under the weight of this financial crisis.
So far, it's trillions for Wall Street and zero for Ohio. What is
fair about that? What is just about that? It's truly a crying shame.
Mr. Speaker, I will place into the Record this report from the
Special Inspector General, as well as the information from the Center
for Public Integrity on these 25 institutions, and I will try to read
in my remaining time: Countrywide Financial Corporation,
[[Page H5278]]
Ameriquest Mortgage Company/ACC Capital Holdings Corporation, New
Century Financial Corporation, and the list goes on, through Aegis
Mortgage Corporation/Cerberus Capital Management, to the tune of $11.5
billion of subprime loans, and still counting.
These top 25 lenders were responsible for nearly $1
trillion of subprime loans, according to a Center for Public
Integrity analysis of 7.2 million ``high interest'' loans
made from 2005 through 2007. Together, the companies account
for about 72 percent of high-priced loans reported to the
government at the peak of the subprime market. Securities
created from subprime loans have been blamed for the economic
collapse from which the world's economies have yet to
recover.
1. Countrywide Financial Corp.; Amount of Subprime Loans:
At least $97.2 billion.
2. Ameriquest Mortgage Co./ACC Capital Holdings Corp.;
Amount of Subprime Loans: At least $80.6 billion.
3. New Century Financial Corp.; Amount of Subprime Loans:
At least $75.9 billion.
4. First Franklin Corp./National City Corp./Merrill Lynch &
Co.; Amount of Subprime Loans: At least $68 billion.
5. Long Beach Mortgage Co./Washington Mutual; Amount of
Subprime Loans: At least $65.2 billion.
6. Option One Mortgage Corp./H&R Block Inc.; Amount of
Subprime Loans: At least $64.7 billion.
7. Fremont Investment & Loan/Fremont General Corp.; Amount
of Subprime Loans: At least $61.7 billion.
8. Wells Fargo Financial/Wells Fargo & Co.; Amount of
Subprime Loans: At least $51.8 billion.
9. HSBC Finance Corp./HSBC Holdings plc; Amount of Subprime
Loans: At least $50.3 billion.***
10. WMC Mortgage Corp./General Electric Co.; Amount of
Subprime Loans: At least $49.6 billion.
11. BNC Mortgage Inc./Lehman Brothers; Amount of Subprime
Loans: At least $47.6 billion.***
12. Chase Home Finance/JPMorgan Chase & Co.; Amount of
Subprime Loans: At least $30 billion.
13. Accredited Home Lenders Inc./Lone Star Funds V; Amount
of Subprime Loans: At least $29.0 billion.
14. IndyMac Bancorp, Inc.; Amount of Subprime Loans: At
least $26.4 billion.
15. CitiFinancial/Citigroup Inc.; Amount of Subprime Loans:
At least $26.3 billion.
16. EquiFirst Corp./Regions Financial Corp./Barclays Bank
plc; Amount of Subprime Loans: At least $24.4 billion.
17. Encore Credit Corp./ ECC Capital Corp./Bear Stearns
Cos. Inc.; Amount of Subprime Loans: At least $22.3 billion.
18. American General Finance Inc./American International
Group Inc. (AIG); Amount of Subprime Loans: At least $21.8
billion.***
19. Wachovia Corp.; Amount of Subprime Loans: At least
$17.6 billion.
20. GMAC LLC/Cerberus Capital Management; Amount of
Subprime Loans: At least $17.2 billion.***
21. NovaStar Financial Inc.; Amount of Subprime Loans: At
least $16 billion.
22. American Home Mortgage Investment Corp.; Amount of
Subprime Loans: At least $15.3 billion.
23. GreenPoint Mortgage Funding Inc./Capital One Financial
Corp.; Amount of Subprime Loans: At least $13.1 billion.
24. ResMAE Mortgage Corp./Citadel Investment Group; Amount
of Subprime Loans: At least $13 billion.
25. Aegis Mortgage Corp./Cerberus Capital Management;
Amount of Subprime Loans: At least $11.5 billion.
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