Skip to comments.Did Hedgies lose out on their investment — or help dump — Dodd?(Dodd $10 million short)
Posted on 01/08/2010 11:27:29 PM PST by TigerLikesRooster
Did Hedgies lose out on their investment or help dump Dodd?
January 6, 2010 at 7:02 pm by Teri Buhl
When U.S. Sen. Christopher Dodd (D-Conn.) announced Wednesday he wouldnt run for a 6th term, folks in the financial world behind the Dump Dodd campaign were rejoicing, but some big name hedgies likely realized theyd just taken a huge loss on their political investment.
Greenwich resident Bruce Rose, founder of Carrington Capital, appears to be the biggest loser. This summer Maurna Desmond of Forbes.com broke the news that the chairman of the Senate Banking Committee was acting as a personal lobbyist for Rose with the Fed.
Rose was having trouble getting Federal Reserve Bank Chairman Ben Bernanke to loosen the terms for his mortgage servicing business, Carrington Mortgage, to borrow from the Term Asset-Backed Securities Loan Facility, or TALF, an important component of the governments financial bailout plan.
One top bank analyst who has an ear with the Senate Banking Committee to monitor the progress of Dodds regulatory reform bill one that would take power away from the Fed in its oversight of banks said a few weeks ago it became clear Dodd just couldnt raise the funds with the financial services community like he had in the past.
As one distressed debt fund manager said Wednesday, Everybody knew Dodd was in need of at least $10 million. He went out to the base the past few months, and they yawned.
(Excerpt) Read more at blog.ctnews.com ...
Hope all the crooks lost big-time. Dodd has lost and one day it would be nice to try him for treason re his support for the Communist Sandinistas, along with John F*cking Kerry.
ITEM Robert Blumenthal, the Conn attorney general who is now a candidate for Dodd's seat------is on record asking asked Irving Picard, the court-appointed trustee overseeing Madoff's liquidation, for the names of Connecticut-based victims............... including nonprofit organizations.
ITEM TAX EVASION AND MONEY LAUNDERING Irving Picard, who is ID'ing Madoff's assets, unearthed a labyrinth of interrelated international funds, institutions and entities of almost unparalleled complexity and breadth...... and assets and businesses in 11 places overseas. Madoff was running several scams including a Ponzi scheme: tax evasion facilitation, non-profit money laundering, and a proteciton racket for non-profits and wealthy poeple who were funneling income to Madoff to avoid US taxes, and banking laws.
We need to find out if Lieberman and Dodd got Madoffed. Last July these two colluded to cut federal appropriaitons for Airport Security that would have Last July, Dodd proposed an amendment reducing aviation security appropriations by $4.5M that would have caught the undie bomber in favor of firefighter grants (a move that enriched one of Dodd's financuial backers). The federal money Dodd and Lieberman eliminated was specifically intended "for screening operations and for explosives detection systems."
(REFERENCE SOURCE Posted by maggief) Senators Chris Dodd (D-CT), Joe Lieberman (ID-CT), and Thomas Carper (D-DE) authored an amendment to the Department of Homeland Security Appropriations Act that will provide $10 million more in funding for grants to local fire departments for equipment and training. The amendment, which passed unanimously last night, will ensure $390 million in funding is provided for the (non-profit?Assistance to Firefighters (FIRE) grant program next year. (Excerpt) Read more at dodd.senate.gov)
ITEM Connecticut senators, Joe Lieberman and Christopher Dodd's wives both have offshore financial/business interests. Liebermans wife, Hadassah, owns stock valued at between $1,001-15,000 in Tyco International Ltd., according to the senators 2003 personal financial disclosure form.. Tyco, formerly based in NH, reincorporated in Bermuda in 1997 to legally reduce its US tax burden.
ITEM Dodds wife, Jackie Clegg, served on the board of Bermuda-based IPC Holdings Ltd., a reinsurance company controlled by AIG, according to Dodds 2003 Senate disclosure form. The companys offshore location allows a US firm that is a major shareholder in IPC Holdings to avoid paying some federal taxes. The senators say there is no inconsistency between their public positions and their wives financial or business dealings.
ITEM March 23, 2009----- Dodd went wobbly when he was asked about his February amendment ratifying hundreds of millions of dollars in bonuses to executives at insurance giant AIG. Dodd has been one of the companys favorite recipients of campaign contributions. But it turns out that Senator Dodds wife has also benefited from past connections to AIG as well.
From 2001-2004, Jackie Clegg Dodd served as an outside director of IPC Holdings, Ltd., a Bermuda-based company controlled by AIG. IPC, which provides property casualty catastrophe insurance coverage, was formed in 1993 and currently has a market cap of $1.4 billion and trades on the NASDAQ under the ticker symbol IPCR.
In 2001, in addition to a public offering of 15 million shares of stock that raised $380 million, IPC raised more than $109 million through a simultaneous private placement sale of 5.6 million shares of stock to AIG - giving AIG a 20% stake in IPC. (AIG sold its 13.397 million shares in IPC in August, 2006.) Clegg was compensated for her duties to the company, which was managed by a subsidiary of AIG.
In 2003, according to a proxy statement, Clegg received $12,000 per year and an additional $1,000 for each Directors and committee meeting she attended. Clegg served on the Audit and Investment committees during her final year on the board. (SOURCE Real Clear Politics by Kevin Rennie)
Looks like Mr & Mrs Dodd are both dirty. ;-)
What the RATS did to Alberto Gonzalez will seem like a Girl Scout tea party in comparison. I can envision Rep Dan Burton interviewing a Staff of 50 right now just for Holder :-)
(1) Insult intended!
Remembering Sen. Pothole's hearings on Whitewater in 1995, I don't see much of anything happening to punish anyone.
The investigations list keeps getting longer and longer.
Thank God we have FR as a reference source---the evidence the GOP needs is all here, chronicled in minute detail.
No offense but I don't know who 'Sen. Pothole' is.
And I was talking about the House not the Senate.
In the House the Majority Party gets things done, that's how their rules are set up. In the senate they deliberate(1), blow a lot of hot air, and *almost* anything can get stopped or held up by one Nay from the minority party.
(1) The US Senate: "The Greatest Deliberative Body In The World."
Yep, basically one for every Democrat Rep and Senator, and every member of Barry's
Administration Street Gang including the Gang leader.
*** Thank God we have FR as a reference source---the evidence the GOP needs is all here, chronicled in minute detail. ***
FR 'prolly' has as much data archived on these criminals as the Library of Congress. And a good portion of that data is provided by, you :-) .. Where you dig up some of this stuff is astounding.
Sen. Pothole was Al D’Amato and I was refering to investigations (as stated in your post #8), not legislation.
Subprime servicer says Obama foreclosure-rescue plan is costly
August 4th, 2009, 2:00 am · 28 Comments · posted by Mathew Padilla
At least one loan servicer is going public with this simple fact: doing loan modifications costs it money while the deals are worked out.
Up until now, in every press report I have seen, servicers have either been silent on the issue or said they would work to modify more loans and cooperate with government efforts to prevent foreclosures.
Of course, the servicers normally promising a stronger effort are the ones tied to retail banks. They are highly visible companies.
But late last month Reuters had an interesting quote from Bruce Rose, a former Salomon Brothers bond trader and currently CEO of Greenwich, Connecticut-based investment firm Carrington Capital Management, which owns loan servicer Carrington Mortgage Servicers in Santa Ana. We are in a position where its a very tough balance act, and thats weighing heavily on us now. This is a classic case of an unfunded government mandate.
The problem: as a servicer spends time fixing delinquent mortgages it must keep making payments to investors as required by the servicing contract.
According to Reuters, Carrington is part of the Independent Mortgage Servicers Coalition, an alliance of companies servicing many of the riskiest mortgages made during the housing boom. They collect payments on more than $700 billion in loans. Heres more:
The costs of borrowing to finance delinquent payments to bond investors far outweigh expected revenue from incentives paid by the government, Rose said. The government will pay servicers $1,000 for every loan modified, and another $1,000 a year for three years if the borrower stays current.
Until recently I never saw Rose give an interview to anyone. He has been media shy since he founded Carrington in 2003. Heres a little background on the company from a Bloomberg story:
Carrington began one of its funds with $25 million from New Century Financial Corp., then the U.S.s second-biggest subprime lender, the mortgage company said in Securities and Exchange Commission filings. The hedge fund bought the lenders loans, packaged them into bonds and sold all but the riskiest tranches, the company said.
The firm did the same with subprime loans from other lenders, including H&R Block Inc.s Option One, according to bond filings.
After New Century failed in 2007, Carrington bought the Irvine, California-based companys servicing business for $188 million, giving it more control over loans backing bonds it owned or might buy.
In related news, Ohio Attorney General Richard Cordray and that states Department of Commerce sued Carrington, alleging it did not follow completely a pact with the state to offer loan modifications to borrowers, according to business journal Business First of Columbus. Heres more:
Carrington in January 2008 signed a pact with the state to resolve a dispute tied to previous litigation against bankrupt mortgage lender New Century Financial Corp. Later in 2008, Carrington was among nine mortgage servicers that signed a non-binding agreement with the state for substantial and large-scale modifications to help Ohioans facing foreclosure stay in their homes. Cordray said the lawsuit filed in Franklin County Common Pleas Court alleges Carrington didnt give borrowers workout terms that sidestep foreclosure and didnt respond to complaints in a timely manner.
Carrington, in its own release, said, Carrington remains single-mindedly committed to helping homeowners throughout this difficult economic cycle and has modified loans for approximately half of its customers, the vast majority of which are now back on track and remain in their homes. And, We regret that the Ohio Attorney General has declined our offer to continue to work constructively to help homeowners and has instead chosen to pursue meritless litigation against the company.
How Dodd Helped A Troubled Hedge Fund Fight For Help
Maurna Desmond, 08.28.09, 02:30 PM EDT
With the assistance of Sen. Christopher Dodd, Carrington Capital lobbied hard for Fed money and came up empty-handed. Now what?
When staffers at the Federal Reserve received a letter from Sen. Christopher Dodd, D-Conn., in early August saying mortgage servicers were concerned that the terms for access to Fed loans were too onerous, some of them were taken aback.
“Independent servicers argue that the terms of the TALF [Term Asset-Backed Securities Loan Facility] advances are not economically viable,” Dodd wrote to Fed Chairman Ben Bernanke. “As a result, a number of independent servicers may not be able to continue modifying loans.” He goes on to ask Bernanke for his “views on the matter.” (Read Dodd’s letter here.)
The officials were surprised by the senator’s Aug. 7 letter because it followed an eight-month lobbying campaign by a handful of mortgage servicers and benefited one firm more than any other: Carrington Mortgage, a division of Carrington Capital, a Greenwich, Conn.-based hedge fund. The letter from Dodd, who chairs the Senate Banking Committee, was a rare coup for Carrington, a key player in the subprime mortgage industry, and one that has been attracting the wrong kind of attention lately.
August 31, 2009...10:22 am
Who is Bruce Rose and Carrington Capital?
Word that this guy and his Greenwich hedge fund are pals of Chris Dodd made me curious to learn more about them. No friends other that Dodd, it would seem, but then, Doddhas always been willing to be your friend as long as your mommy pays him to do so.
Thought folks on your ping list might be interested in Liz’s post here.
“The GOP is going to be veeeery busy investigating these mutts when they take congress back in Nov.”
The Republicans never investigated the Clintons and company
after taking controll in the 90’s. Let’s hope they do better this time.
Seems most of the dems are crooks - I wonder why they're going after Dodd... Would he expose the rest of 'em?
Dodd was going to be dead meat in November - in a “blue state” he was losing big to any of the three potential GOP candidates - so Dem leadership (and Obama’s phone call) pushed Dodd out, to avoid primary and defeat, trying to save the seat. Once it became obvious, no one would waste money to give Dodd’s campaign.
Dick “The Integrity” Blumenthal may just pull it off, though he always had his sights set on Governor’s office.
Dems are moving the “familiar faces” around to save what seats they can in Novemeber. They are much better at this than GOP, and have a very deep bench, with different colors of “dogs” - “blue”, “yellow”, “purple” - suited to specific areas...
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