The 700 billion of our tax money handed over to Paulson to clean up his mess does not seem to impress the rest of the world. Even Russia closed all trading at one time today because the panic was out of control. Wink to them from your backyard, Mrs. Palin.... It might be the positive gesture they need.

I'd like to know, from a Republican, if this is an example of self-regulating financial institutions.



Countrywide was facing suits in eleven states before it was acquired by Bank of America and chose settlement rather than a trial.

Does the BofA expect to be repaid out of our $700B bailout monies or is it freeing up (or is Countrywide) it's own reserved monies to meet this settlement agreement.

I ask for a couple of reasons. First, if this is a settlement made possible by the bail-out, our tax money will be used to make big banks even bigger. Second, if the BofA or Countrywide is making their own money available for the settlement, why is a bail-out using our money needed?

Perhaps I am mistaken but I thought that bail out money was being used to purchase these troubled financial institutions and bring them under government ownership rather than being used as a direct loan to them...I will have to dig a little deeper as I kow the bail out plan involves lots of subcomponents and perhaps there are some direct loans.

Law, we often read the same things in different ways, as we should.

Bank of America bought Countrywide back in January of this year for $4B--as I understand it, that means BoA bought Countrywide's assets some of which include mortgage loans that remain solvent.

What isn't clear from the article is who's paying for the Countrywide legal settlement? Is it BoA, Countrywide or us?

Your assignment, should you accept it, is to find out...

I asked for a Republican's opinion because, if BoA and Countrywide are paying the bills, and if this is an example of deregulated self-regulation--or self-correction--then it's a good thing. If, on the other hand, the legal settlement will be paid for out of bail-out money, it's not a good thing.

I have to think that BoA knew the exact cost of the settlement plan prior to its purchase of Countrywide and that was factored into the $4B purchase price. In other words, there is money in some banks and they're using it to purchase failing financial institutions.

As a result of the panic caused by the dire warnings that led to approval of the bail-out, there's been a run on Wall St. as people pull out of the market in order to save what they can rather than lose everything.

See why I can't place blame?

So the banks are now using the bailout money not for providing loans, which was the major selling point of the bailout, but to buy up other banks.

At first I thought maybe this is a good idea, as it should give the major lenders more leeway to provide loans. On second thought, the last decade was all mergers and acquisitions so it seems to be more of the same old nonsense.

The incompetent execution of the bailout pisses me off to no end. The government simply should have let the banks burn, the executives with them, and allow corporations to come in and pick over the carcases. That would have been the capitalistic thing to do.

And the Republicans say Obama will lead America to socialism, when in fact Bush & Co. has already done so.

How do you like the government owning your bank, Mr. Rove? Does it make that fat Conservative heart of yours happy?

(PS: In case Karl Rove isn't reading this, please see that he gets the message. Thanks.)

Am I not surprised some of the bailout money is being considered for executive bonus'?


But reports surfaced that bankers might instead use the money to buy other banks, pay dividends, give employees a raise and executives a bonus, or just sit on it. Insurance companies now want a piece; maybe automakers, too, even though Congress has approved $25 billion in low-interest loans for them. Miami Hearald

I wouldn't be at all surprised, CG. And now that the faultering banks are being bought, using our money, what guarantees do we have that the buyer banks won't continue their fraudulent practices?--As far as I can learn, we have no such guarantees.