Countrywide Settles Destroyed Check Lawsuit

The New York Times reports that Countrywide has settled a lawsuit that alleged it destroyed $500,000 checks that the company claimed were late.

(click here for the story)

IndyMac Under Investigation By FBI

More on IndyMac (click here for full story):

The FBI is investigating failed bank IndyMac Bancorp Inc. for possible fraud, an official said Wednesday of the government's latest target following the collapse of the nation's subprime mortgage market.

It was not immediately clear how long the FBI's probe of the bank has been ongoing - or whether it was opened before last Friday's takeover of IndyMac by the Federal Deposit Insurance Corp.

The investigation appears to be is focused on the company and not individuals who ran it, a law enforcement official told The Associated Press. The official spoke on the condition of anonymity because he was not authorized to speak publicly about the investigation.

Bush Bribery Video

I was listening to the Minnesota Independent senate candidates on MPR this afternoon while driving to a lunch meeting, and they were asked whether they believed the system was corrupted. (Gary Eichten used a far more colorful Ventura quote, but that was the question). Dean Barkley quoted the dictionary definition of bribery, and then stated that that is what we have in Washington DC right now. (click here for the audio)

As if to illustrate Barkley's point, here's a big story in Europe that is not being covered at all in the United States. A meeting with Condoleeza Rice and Dick Cheney going for a couple hundred thousand dollars. (click here for the story) I remember that Al Gore's use of a telephone in the White House dominated the news for days on end. There was much hand ringing over his use of a government telephone, and, yet, here is this...a simple quid pro quo and nothing is said.

Watch the Think Progress video yourself and decide whether it fits this definition of bribery (click here):

1 : money or favor given or promised in order to influence the judgment or conduct of a person in a position of trust

2 : something that serves to induce or influence

Fannie and Freddie Belly Flop

"Too big to fail," is a mantra that I have read over and over, again, as it relates to Fannie Mae and Freddie Mac. Not only is it a ridiculous concept, but it is down-right dangerous. The US PIRG blog has a good post about the future of Fannie and Freddie (click here). But here is an excerpt:

Chuck Lewis, founder of the investigative reporting think tank, the Center for Public Integrity, said that in all their years of analyzing the strategies and contributions of powerful special interests, Fannie was the only one that not only hired the former Members and the former hill staffers, but "also hired their spouses and children" and as Creswell notes, "their friends." Fannie wanted blanket coverage of the political universe, and it could afford to pay for it.

Obama: Reforming Bankruptcy Laws

Obama offerred two new targeted bankruptcy reforms that hold a lot of popular appeal and they will also put Senator McCain in an awkward position. First, Obama proposes a new, streamlined procedure for military families to declare bankruptcy. As we, as a country, have shifted our reliance on the "permanent, standing" military, and have weighed heavily on reserve units, the financial toll on our national guardsmen and guardswomen have been horrible. Efforts to increase pay and scholarships have been blocked or opposed by the White House and Senator McCain. The new Obama proposal, again, raises the question about who really supports our troops. The second proposal relates to helping elderly couples who are in bankruptcy keep their homes.

(click here for the story)


Both proposals are a great beginning, but I think they should apply to all families. I think going down a path that separates different kinds of debtors into "good" or "bad," can be dangerous. Why should a family who has their jobs shipped to Mexico have a tougher time declaring bankruptcy? To a certain extent, it plays into the stereotype that anybody who declares bankruptcy is a deadbeat. Bankruptcy is not a sin or immoral. Abuses are over-reported and isolated. One of the greatest characteristics of our country has been the ability of individuals to try, fail, and then reinvent themselves. Bankruptcy is a key element in making that a possibility.

As the owner of multiple failed and bankrupt businesses, I think that is something that even our president could agree with.