PayThink

Just because the Treasury Department abandoned its plan to use government funds to buy toxic assets doesn´t mean holders of the pesky things won´t get help from Washington. A private company, SecondMarket, is trying to revive trading in mortgage-backed securities and structured products related to them, and it has turned to a giant figure in banking regulation for help: former Federal Deposit Insurance Corp. chairman L. William Seidman.

Consensus at the National Housing Forum yesterday leaned toward the idea that loan modifications weren't working as well as they ought to be. But what else could help protect borrowers from foreclosures? Many federal policymakers act as though they´ve tried nearly everything.

More evidence that the Federal Housing Administration lacks resources emerged during yesterday´s National Housing Forum at the National Press Club. But will complaints about the FHA´s impaired capacity ever reach the critical mass they need to draw more money to the agency?

The Federal Reserve Board has established a dozen different lending facilities since the financial crisis began, each with its own acronym and big-dollar figures. Can you guess how much the federal government has sunk into the markets this year and how they´ve abbreviated it? Perhaps you should try, before scrolling down for the answers.

A familiar theme emerged from a high-powered panel this morning at the Office of Thrift Supervision´s National Housing Forum. Two more regulators took the time to defend the Community Reinvestment Act against criticisms that it caused the subprime crisis.

The winner of the Banker of the Year award brought an unusual special guest with him to the annual dinner. Bank of America CEO Ken Lewis sat the forty-year scourge of shareholder meetings Evelyn Y. Davis at his side-and he had her good ear.

I entered the credit union industry back in 1995, three years before HR 1151 was passed. In 1995 the U.S. bailed out Mexico's collapsing economy with $20 billion in support-a bargain at today's bailout prices!

In a time when the financial world is changing-bank failures on top of a mortgage industry crisis, government interventions, and the credit crunch-I begin to wonder, could this be our finest hour?

First, I hope this letter finds you well. I know it does. Despite the turmoil in financial services, the CU movement is alive and well, with over 85-million members, an expanding product and service base, and a strong history of providing great service to members. But there is a problem-and it cries out for your full attention.

For the management at a fair number of credit unions the current economic environment is one many never thought they'd see. Sure, they may have done some worst-case scenario planning as part of their annual due-diligence or participated in a doomsday exercise at one of the management institutes, but that was all make-believe, right?