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Or that actually California State attorney general Jerry Brown was one of those who helped negotiate the deal I spoke to him a little earlier from Oakland take a listen.
Let's talk about countrywide because you had some you know some pretty harsh words about the way that they we're leading -- lending practices talk first about.
The settlement that you you arrange with the countrywide and Bank of America of course bought them off.
Well good settlement because it's going to enable.
Tens of thousands of people actually hundreds of thousands of borrowers throughout the country to stay in their homes -- the largest me inventory.
Debt reduction or mortgage reduction.
Effort that has ever happened.
And it's it's really solid.
For those who are seriously delinquent if they fit within the eligible criteria that they can have their mortgage -- to 90%.
Of the current appraised value of their home and that and everybody ought to just be specific big -- for individuals who who can prove.
That they were essentially swindled into a deal correct.
That's the underlying claim but as long as -- -- -- some state of serious delinquency they took the blown out doing the -- period of time.
They may well be eligible without -- more than his -- Bank of America or countrywide had to get this loan relief.
That's that's -- -- -- -- reason why we won this is from filed his -- July we started negotiating with Bank of America.
They've stepped up to the plate and they're putting a little line.
Probably close to eight billion nationwide about three three billion in California to remedy.
What has -- be a very improbable -- -- of lending practices people were lied to they were -- in loans they couldn't understand vulnerable people would probably some.
Some foolish people as well.
Got into the situations.
Buying houses taking out loan obligations the way beyond their financial.
Capacities -- doesn't doesn't want in this.
Does it bother you at all that -- you might be bailing out some foolish people who should have known better.
Well we're helping a lot of good people that were victimized.
I feel good about that -- -- -- so mothers that.
Are not so deserving that may well be we want the people would be in the house when I can help speculators.
And there will be some quality control here but.
Let's look at this way countrywide and and its leaders.
-- supposed to be the prudent banker they have the education they made huge huge salaries and there may give it.
Off the backs of of a borrowers now.
When you tell some in the home the American dream you're gonna get into your home.
When you don't check their income when you -- putting down.
He then you know you've offended the traditional.
Prudence that we expect of -- -- bank and that's exactly what happened here.
And ultimately hopefully sooner rather than later we'll get back -- financial rectitude.
Not -- countrywide but throughout the entire.
You know I think a lot of people agree we have both on the left in the right it's not a partisan issue.
You're saying the countrywide -- led the American dream and -- the American dream into a nightmare I can understand that but.
When you look at the last housing bill that passed about a month or so ago what you see that countrywide.
And Angelo Mozilo worried who ran country -- were able to offload a lot of their worst mortgages to the FAJ as a result of that housing bill.
That doesn't seem right it seems like taxpayers.
Are paying for -- -- often.
Well you know I'm not familiar enough we got housing bill but obviously -- get nearly able Washington he used to get yours and you got lobbyists you know -- he's trying to.
Unload we're in a crisis in this country and it's understandable.
That it people have kind of an attitude it's every man for himself.
But looking at the larger picture we need -- we need extraordinary intervention.
And we've had some of that already with -- 700 billion some of the legislation it'll be flawed we're gonna make mistakes but.
We're not out of this mess yet and we have to have that you need the capital we have to have -- liquidity and we need the regulatory.
Wisdom in the interventions that will counter balance these.
Animal spirits of the market.
I'll let you put you on what you're all right if it was just the animal spirits -- -- -- one thing but you put your finger on it it's it's the lobbyists inside the beltway.
Who spend millions hundreds of millions of dollars for -- for Freddie for countrywide you name it.
Getting very little piece of the pie getting their little -- is decent.
Of action nobody else had it is and isn't that where we should be focusing our efforts -- this doesn't happen again.
-- show would have to focus in on that but I -- -- we really need to.
Own up to he's in our economy to a significant degree in recent years has been the product of a bubble.
Fair missing money generated out of fear -- cold no down payment cold 31 leverage and that is going to be squeezed out.
As it is squeezed out there will be casualties but more than that because he's gonna grow slowly.
It's certainly in the short term if at all.
And we're gonna have to adjust to and I turned back in 1976.
And era of limits there are limits and -- -- -- And -- taking.
We can create real value but we've got to balance -- with the economic and financial realities and that's something that a lot of powerful and most people budget.
It's that insider's game inside the beltway where billions of dollars are being moved and where regulatory.
Lending regulations on lending were lowered because of the lobbying power the hundreds of millions spent by countrywide -- Fannie and others.
That to me that's the source of the trouble in my wrong.
Well you know if I can believe the -- -- times yesterday.
Mozilo from countrywide.
Told the kind of -- -- -- hey you're irrelevant will go directly to Wall Street.
Putting pressure on through -- -- to relax their standards so I would say it is a certain collective myopia.
In Providence he was.
He's covered all events though he covered he covered all bad -- put -- got a lot of bets down inside the beltway to.
He did a new one I I think a certain amount of finger pointing -- -- inevitable but I think now we gonna think about our country.
The stability of our families and our communities and that calls for real leadership.
And the real world really are out of the people who Washington sacrifice we're all gonna have to tell you -- bill -- you have to look out.
For the other guy and for the country and for the long term and that's not been the order of the day for the last ten years.
Former governor Jerry Brown now attorney general of the great state of California thank you very much for being was appreciate it.
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