Counterparties

By Felix Salmon
February 22, 2010
McSweeney's

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Wajahat Ali vs Wells Fargo: An astonishing loan-mod tale — McSweeney’s

Marion Maneker raises questions about the legality of breaking up & selling the Polaroid photo collection — Art Market Monitor

Jay McInerney to replace Becher & Gaiter as WSJ wine columnist. Expect lots of rich-people wines — Dr Vino

Asked if the president can “order a village” to be exterminated, Yoo answers, “Sure.” pg. 70, PDF — NYT

The Best Way to Enjoy Wine: Try Overpaying — Smart Money

Zero tolerance vs common sense — William Polley

Paulson sorry he blamed UK for Lehman failure — Times

“It is a little hard to find a place for Mr. Greenspan in my homes. He is still there, but in a closet” — WSJ

Citi Warns of Withdrawal Gate — Future of Capitalism

A Charlie Munger parable — Slate

Comments
3 comments so far

Re: loan mod tale. The guy lied on his loan application by a factor of 12 and bought a $585k house on a $26k salary.
THEN even when the house is only worth $270k they STILL WANT TO KEEP THE HOUSE.
Yes that is OVER 10x salary multiple.

And this is THE BANK’S FAULT!!!!!!!

YOU CAN’T AFFORD THE HOUSE.
YOU ARE LIVING OFF SOMEONE ELSE’S MONEY.
Wake up, smell reality and walk away.

I haven’t finished the whole article but right now, they are going to have to pull some sort of miracle for me to have ANY sympathy with that family.

Posted by TinyTim1 | Report as abusive

Wells Fargo sounded rude and less than competent, but Well’s computer program is right. That family can not afford that house even at $270k.

I just hope the lawyer didn’t make them sign anything turning it into a recourse loan.

Posted by WVJoe | Report as abusive

I agree with both TinyTim1 and WVJoe, but if the description of the original loan application process is correct, what we have here is not simple fraud by the borrower. It is conspiracy to commit fraud involving the borrower and (at the least) the broker, who (again based on the description) knew that the income on the forms was false but said to sign anyway. I say “at the least” because who knows how far up the chain the knowledge extended.

Posted by KenInIL | Report as abusive
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