As I have reported here on many times before, the FDIC’s Chairwoman, Sheila Bair, seems to be the only ”caring soul” in Washington that seems to have a true “grasp” of the mortgage and housing realities (nightmares) here on Main Street. 

Over the past year I have reported and complained that these bailouts, bills and so called initiatives have done little if anything to “truly” assist struggling homeowners. It is painfully obvious that from the $700 billion tax payer bogus bailout to the $25 billion government gift to Bear Stearns, Wall Street continues to get golden parachutes and carrots and all the while, American consumers are up foreclosure creek without a paddle.

Shelia Bair confirms in the Wall Street Journal today, what I have been writing about on and on for more than a year. Our government is failing to protect homeowners who are holding toxic mortgages. Yet, they protect the banks with toxic assets via the T.A.R.P. program ($700 billion) and what amazes me is that these are the same toxic assets or excuse me “toxic liabilites” that are causing issues for consumers who are dying from these incerdibly “defective” credit instruments on Main Street. Also known as their homes and loans:

Federal Deposit Insurance Corp. Chairman Sheila Bair on Wednesday criticized the federal government for failing to take more aggressive steps to prevent Americans from losing their homes, highlighting a rift between her and other senior U.S. officials over terms of the $700 billion rescue package.

The government plan will help stabilize financial markets but it doesn’t do enough to address home foreclosures, the root of the crisis, she said in an interview with The Wall Street Journal.

“Why there’s been such a political focus on making sure we’re not unduly helping borrowers but then we’re providing all this massive assistance at the institutional level, I don’t understand it,” she said. “It’s been a frustration for me.”


What is it that Sheila Bair gets and others in Washington don’t?


Maybe it is the fact that her agency, the FDIC, is a consumer protection agency and that Ms. Bair is going to do just that. Protect the people and not the banks.


Maybe it is because she truly “cares” about her job and the people of this great country and maybe Ms. Bair feels it is her duty to pull the wool from the media’s and the public’s eyes to show them the reality of what our federal government has done and is doing to protect Main Street.




More great comments that are going unheard in Washington form the woman who should be in charge of the mortgage and housing crisis on Main Street and should be our next US Treasury Secretary:

“I support all the measures; I’ve been a part of all the measures that have been taken,” she said. “But we’re attacking it at the institution level as opposed to the borrower level, and it’s the borrowers defaulting. That is what’s causing the distress at the institution level. So why not tackle the borrower problem?”

Read more FDIC and Sheila Bair Exclusives here on

We are going on more than a year of warnings from the FDIC to step up pressure on loan modification efforts by servicers and now they are warning of more bank failures to come. Today in the New York Times, it was reported that the FDIC may need to borrow money themselves to insure the potential of trillions of dollars in losses for US banking customers.

October 1, 2007FDIC Chairman Wants Lenders to Fix These Loans Federal Deposit Insurance Corp. Chairman Sheila Bair called for payments on most subprime mortgages to be fixed at current levels.

Lenders should extend “teaser” rates on all subprime adjustable-rate mortgages if the borrowers haven’t missed any payments and they live in the homes, Bair said today in New York. Modifying loans on a case-by-case basis and fixing rates for limited periods won’t avert enough foreclosures, she said.

November 9, 2007Adopt a Wholesale Approach to Loan Modifications or We Will Make You – Sheila Bair, chairman of the Federal Deposit Insurance Corporation, said “There was a gathering of political momentum for a more ­radical approach than the investment and home loans industries had so far countenanced.”

December 6, 2007Statement of Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation on Accelerating Loan Modifications – Critics of the proposal to restructure loans to the starter rate as described above argue that such an approach is untested and cannot be implemented on a broad basis. However, the FDIC is aware of servicers that have already begun to use a similar approach with borrowers. Those servicers are reporting that the approach is feasible and significantly reduces the cost of restructuring and its complexity.

Some loan servicers and investors have said that the approach cannot be applied consistent with PSAs because the duty to maximize NPV requires servicers to review loan by loan to set a new payment between the starter and reset rate. As I will explain below, this argument fails to consider that a loan-by-loan approach, given the current and anticipated rate of resets, will prevent maximization of NPV for the pool as a whole due to inherently limited servicer resources.

February 1, 2008FDIC: Subprime Modifications ‘Lagging’ – The pace of loan modifications on adjustable subprime mortgages is lagging, which could prompt regulatory action on the mortgage industry, U.S. Federal Deposit Insurance Corp. Chairman Sheila Bair warned Thursday.

“Unfortunately, at this point, the available information seems to show that foreclosures continue at an unacceptably high level while true loan modifications are lagging,” Bair said in prepared testimony to the Senate Banking. “It is important that servicers demonstrate and document real progress soon or they invite regulatory and legislative action to supplement the industry’s actions.”

April 8, 2008 FDIC Chief Calls for a Housing Rescue – Q.Why does the foreclosure problem warrant government intervention? Sheila Bair A.- I am increasingly concerned about the foreclosure rate and the potential for a downward spiral, where we have too much inventory, additional foreclosures adding to inventory, which forces home prices down, meaning fewer people can refinance—leading to more foreclosures and more downward pressure on home prices. If this downward spiral takes hold, there could be much broader ramifications for the economy as a whole. So I think we need to come to grips with the need for government intervention. It’s not politically popular. We just need to be honest with people that we have a significant problem here and that additional measures are going to have to be taken. And yes, it may cost money.

August 27, 2008Agency’s Head Says Banking’s Crisis to Worsen – More than a year after the credit crisis first flared, Ms. Bair, the chairwoman of the Federal Deposit Insurance Corporation, warned on Tuesday that the outlook for the ailing banking industry was bad — and getting worse.

The swelling tide of toxic home loans is proving to be even more worrisome than initially feared, Ms. Bair said. She is struggling to clean up the mess and forestall home foreclosures with a plan to ease loan terms for hard-pressed homeowners.

“It is going to be slog to work though this, but there is no easy way to do it,” Ms. Bair said about her plan during an interview in her office here. “We haven’t seen the trough of the credit cycle yet.”

Statement of Sheila C. Bair Chairman FDIC on A Review of Foreclosure Mitigation Efforts

Applying workout procedures for troubled loans in a failed bank scenario is something the FDIC has been doing since the 1980s. Our experience has been that turning troubled loans into performing loans enhances overall value. In recent years, we have seen troubled loan portfolios yield about 32 percent of book value compared to our sales […]

Bank Armageddon: The FDIC is Strapped for Cash

The Federal Deposit Insurance Corp (FDIC) looks to be strapped for cash. Just like the banks and the American people for which their cash, they protect. It looks like they’re following in the footsteps of Bear Stearns, Freddie and Fannie because now the FDIC may seek to borrow money from the Treasury Department AKA the […]

Is Your Bank About to Implode? The FDIC is Hinting, YES!

The lender carnage, death and destruction litter the home page of Aaron Krowne’s Mortgage Lender Implode-O-Meter like the beach at Normandy on D-Day. The infamous list has grown from September 2006 when Aaron started the website with approximately 10 failed lenders to a whopping 276 major U.S. failed lending operations today. That comes out to about one failed […]

Should the FDIC & Sheila Bair be in Charge of Cleaning Up the Toxic Mortgage Crisis?

This blog and my life has been dedicated to following what lenders, servicers and our government have done and are doing to assist the millions of Americans that are facing foreclosure as a result of being sold defective credit instruments. AKA subprime and ALT A mortgages. In my hundreds of hours of research and work, only one agency […]

Remarks by FDIC Chairman Sheila C. Bair on the IndyMac Loan Modification Announcement

Good afternoon, thank you for taking the time to participate in this conference call. I would recognize John Bovenzi with IndyMac Federal, who is also on the line, and thank him for his contributions to today’s important announcement. John will provide brief remarks following mine. I am pleased today to announce the implementation of a systematic […]

Loan Modification Program for Distressed Indymac Mortgage Loans

From the FDIC: IndyMac Federal Bank, FSB (“Indymac Federal”) will implement a new program to systematically modify troubled mortgages. The program is designed to achieve affordable and sustainable mortgage payments for borrowers and increase the value of distressed mortgages by rehabilitating them into performing loans. This in turn will maximize value for the FDIC, as well […]

FDIC Chairman Sheila Bair’s Statement on the Federal Reserve Board’s Final Rule for Home Mortgage Loans


Media Contact: Andrew Gray (202) 898-7192

Federal Deposit Insurance Corporation Chairman Sheila C. Bair today issued the following statement on the Federal Reserve Board’s approval of a final rule for home mortgage loans. “I applaud the Federal Reserve Board’s decision today to issue final, strengthened rules under HOEPA that will correct many […]

FDIC Chairman Sheila C. Bair Issues Statement on IndyMac Federal Bank, FSB, Conservatorship


Media Contact: In Washington: Andrew Gray (202) 898-7192, Cell: 202-494-1049

  FDIC Chairman Sheila C. Bair, today issued the following statement about IndyMac Federal Bank, FSB, the conservatorship created by the FDIC to continue to provide banking services in communities served by the former IndyMac Bank, F.S.B.

Paulson on US Housing Market Before the FDIC on Mortgage Lending

Remarks by Secretary Henry M. Paulson, Jr. on U.S. Housing Market before FDIC’s Forum on Mortgage Lending to Low and Moderate Income Households

Washington, DC–Good afternoon. Thank you Chairman Bair for convening this forum, and thanks to all of you for your interest in encouraging responsible lending to low and moderate income households.

The issuing power of money should be taken from the bankers and restored to Congress and the people to whom it belongs

Thomas Jefferson was the third President of the United States (1801–1809), the principal author of the Declaration of Independence : BANK (NATIONAL) (THREAT TO LIBERTY) If the American People ever allow the banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will […]

Will the FHA Housing Stabilization and Homeownership Retention Act Save Homeowners?

Forbes: Committee Chairman Barney Frank of Massachusetts has said the bill, the Housing Stabilization and Homeownership Retention Act, could be up for a vote by the House as early as next week. Under the bill approved today, a voluntary program would be created that would allow the Federal Housing Administration (FHA) to insure up to 300 bln […]

FDIC Chief Calls for a Housing Rescue

 Sheila Bair says government intervention is needed—soon As chairman of the Federal Deposit Insurance Corp.—the agency charged with protecting accounts at the nation’s 8,500 banks—Sheila Bair is knee deep in the government’s efforts to resolve America’s most harrowing financial crisis in a generation. She recently sat down with U.S. News to discuss the cancerous effect of […]

Remarks by FDIC Chairman Sheila C. Bair to the Joint Venture Silicon Valley Network State of the Valley Conference, San Jose, Calif.

Press Release from the FDIC It is truly a sign of unusual economic times when a group of high tech leaders asks a bank regulator of all people to speak to them. But bank regulation – or perhaps I should say weaknesses and holes in our bank regulatory structure — lie at the heart of our current […]

FDIC: Subprime Modifications ‘Lagging’

WASHINGTON — The pace of loan modifications on adjustable subprime mortgages is lagging, which could prompt regulatory action on the mortgage industry, U.S. Federal Deposit Insurance Corp. Chairman Sheila Bair warned Thursday. “Unfortunately, at this point, the available information seems to show that foreclosures continue at an unacceptably high level while true loan modifications are lagging,” […]

The federal government will “step up the pressure” on the lending industry to work out America’s mortgage mess so fewer people lose their homes – FDIC’s Sheila Bair

“This is deadly serious,” Sheila Bair said  in a speech Downtown. “Foreclosures are too high in Pittsburgh and around the country.” The FDIC chairman seems to speaking out more and more in regards to the efforts of lenders and servicers to perform loan workouts and loan modifications. Bair spoke at a downtown Pittsburg, Pa. to more […]

Statement of Sheila C. Bair, Chairman, Federal Deposit Insurance Corporation on Accelerating Loan Modifications

Improving Foreclosure Prevention and Enhancing Enforcement before the Financial Services Committee; U.S. House Of Representatives; 2128 Rayburn House Office Building December 6, 2007 Conclusion of Statement Poor underwriting and abuses in the subprime mortgage market are having a significant negative impact on the housing markets and the U.S. economy. In the coming months, large numbers of subprime adjustable […]

Statement by Secretary Henry M. Paulson, Jr. at Press Conference to Announce Framework to Help Preserve Communities by Preventing Foreclosure

December 6, 2007 HP-716 Washington, DC – Good afternoon. Thank you, Secretary Jackson, Chairman Bair, Comptroller Dugan, Governor Kroszner, Director Lockhart, Director Reich and representatives from the American Securitization Forum, HOPE NOW, the Mortgage Bankers Association and the Housing Policy Council for your creativity and flexibility during these recent months. We have worked through an evolving process […]

A broad approach would “significantly disrupt the reasonable expectation of investors”

By Moe Bedard George Miller, executive director of the American Securitization Forum made the above comment in an interview earlier this month along with this comment in regards to a mass loan modification approach, ““It is really an indiscriminate procedure that would violate the terms of the contract that provide for loan-by-loan decision making.” First of all, I understand contracts […]

FDIC’s Sheila Bair, Diana Olick & Moe’s Response to Their Views on Loan Modifications

By Moe Bedard Loan modifications are the new buzz term in the media and with our government. It looks like they have all have finally jumped on the Moe band wagon. On Monday, Diana Olick of CNBC posted on her blog, what she said, “  I ranted quite a bit yesterday on loan modifications,” where she had made […]

Adopt a Wholesale Approach to Loan Modifications or We Will Make You

The message is out to lenders. Start working with struggling borrowers or WE WILL MAKE YOU! This past week was a great step forward for struggling homeowners and been quite a week on the mortgage crisis forefront. Heads are starting to roll in the form of new indictments and investigations as Congress drills Ben Bernake about what the Federal Reserve is going to […]

FDIC Chairman Wants Lenders to Fix These Loans

There seems to be a lot of news coming out of Washington and its good news for homeowners. But so far these pleas have fallen on deaf ears. Lenders seem to be hearing these cries to assist borrowers but from the looks of things, they aren’t listening. Read the Full article here.