Tuesday, January 31, 2012

Developers Looted Fanny Mae and the Pension Funds to Buy Stuy Town & Peter Cooper Village

Washington Post Reports Freddie Mac Bet Against Homeowners

ProPublica’s Jesse Eisinger reported yesterday that Freddie Mac has used a complex derivative transaction to place large bets that rely on millions of American homeowners remaining in overpriced mortgages to pay off. The bets in Freddie’s investment portfolio — which totaled $3.4 billion in 2010 and 2011 — directly contradict the housing giant’s stated mission to provide affordable mortgages to Americans. At the same time Freddie was trapping their mortgage holders who were over their head by making it harder for homeowners to get out of such high-interest mortgages. Freddie Mac Bets Against American Homeowners (PUBLICA) * Freddie Mac’s big bet against homeowners(Wash Post)

True News Reported in 2009 Fannie Mae Was Being Used by Developers to Destroy Stuy Town As A Middle Class Complex

In October 2009 True News reported that Tishman Speyer and Blackrock were used Fannie Mae and Freddie Mac to back $1.5 billion in debt of their $5.4 Billion purchase of Stuy Town and Peter Copper Village. True News point out before the purchase that the only way the buyers were going to make a profit with their 5.4 billion purchase price was to move the rent stabilized tenants out and sell or rent at 2008 market rentsWall Street Hijacks Federal Agencies Created to Provide Affordable Housings

Developers Looted Fanny Mae and the Pension Funds to Buy Stuy Town & Peter Cooper Village
Tenants Roiled by Challenges on Residency - NYTimes.com. The mayor who fought tenant and community opposition said let the market place decide. Well the market crashed in 2008 along with the city's economy and real estate market and the building are now worth about 2 Billion. It gets better Blackrock which got part of the 1.5 billion debt covered by Fanny Mae is an advisor to Fanny Mae BlackRock gets third rescue mission from the federal governmen. Fannie Mae created in 1938 as part of Franklin Delano Roosevelt's New Deal mission is to tear down barriers, lower costs, and increase the opportunities for home ownership and affordable rental housing for all Americans.

Roosevelt Created Fannie Mae to Increase Home Ownership and Provide Afforable Rental Housing
The Tishman and Blackrock also used their political connect to use the California and Florida pension funds and who knows how much for the secretive New York pension funds (no transparency and everything is chopping up through middlemen investors). In 2010 with the complexes worth less than $2 Billion and Facing Bankruptcy, Stuy Town Owners Hand Keys to Investors The $1.5 billion to Fannie Mae and billions to the pension funds lost and must now be paid by the taxpayer back to those funds.

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