As Sean Brodrick noted earlier today...
"Nobody could have predicted that sleazy banksters like Citi and Bank of America would try to game the Geithner bailout, right? Oh wait, plenty of people could have predicted that. Unfortunately, none of them work for the Obama administration. Anyway, according to the New York Post…
The huge subsidy to banks hidden inside of Tim Geithner’s public-private partnership program may already be leading banks to load up on securities they plan to sell at inflated prices.
Citi and Bank of America have been aggressively buying up Alt-A and ARM mortgage backed securities, sometimes paying more than the going rate of around 30 cents on the dollar.
In other words, the banks buy the toxic debt for 30 cents, sell it to the PPIP for 50 cents, and pocket a quick (and huge) profit immediately. Thank heaven for the free market, eh?"
No surprise - VHF
