Chris Whalen: "Fannie Mae Is Now The Largest Landscaping Company In The U.S." (VIDEO)
Nov 7, 2010 at 10:16 PM
DailyBail in Bank Bailouts, bailout, bank fraud, banks, banks, chris whalen, chris whalen, chris whalen video, foreclosure, foreclosure fraud, foreclosure-gate

2 minutes.  Whalen on Foreclosure-Gate.  Shite will hit the fan in 3-6 months.  Says Dodd-Frank may be used to restructure banks.


CNBC Video:  Chris Whalen on Fast Money

Transcribed quote:

There is declining interest income on one side of the house and increasing costs in servicing foreclosures of properties.  They are losing money on both sides.

The efficiency ratio for banks is going to go close to 100%, banks are going to be bleeding cash.  The next three to six months is when things are going to get out of control; banks servicing departments don't have the capacity to own and operate the real estate.  Dodd-Frank legislation may be used to restructure banks.

Fannie and Freddie are the biggest sellers of real estate in the U.S.  Fannie Mae is the biggest landscaping company in the U.S. now.

Banks are not equipped to be owners of real property; when their assets get illiquid they can't lend.  Banks are walking away from the properties.


Recently from Chris Whalen:

Chris Whalen Explains Everything You Need To Know About Foreclosures, Loan Put Backs & Bank Risk 

Bernanke's Road To Deflation: Will Quantitative Easing Work As Intended?

Chris Whalen & Nouriel Roubini On A New Gold-Backed Currency: "Paper Assets Are Headed To Zero" (VIDEO)

Chris Whalen's Latest Op-Ed: Expect An ONSLAUGHT Of State Mandated Foreclosure Moratoriums In 2011

Chris Whalen: New Bank Bailouts Under Dodd-Frank For Bank Of America, Wells Fargo Within 12 Months (VIDEO)

Is Foreclosure Fraud The New Black Swan For Banks



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