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FDIC Responds to "Blatantly False" Video

By Anonymous

A number of readers have sent me a video that is obviously inaccurate. I usually don't do "take downs", so I'm happy to see the FDIC has responded ...

From the FDIC: FDIC Provides Additional Information on its Loss Share Agreement With OneWest Bank

FDIC Director of Public Affairs Andrew Gray said, "It is unfortunate but necessary to respond to blatantly false claims in a web video that is being circulated about the loss-sharing agreement between the FDIC and OneWest Bank. Here are the facts: OneWest has not been paid one penny by the FDIC in loss-share claims. The loss-share agreement is limited to 7% of the total assets that OneWest services, and OneWest must first take more than $2.5 billion in losses before it can make a loss-share claim on owned assets. In order to be paid through loss share, OneWest must have adhered to the Home Affordable Modification Program (HAMP).

The producers of this video perpetuate other falsehoods. The FDIC has not requested to borrow money from the Treasury Department. Indeed, we continue to be funded by the banking industry through assessments, not by taxpayers as claimed in the video.

This video has no credibility. Regardless of the personal or professional motivations behind its production, there is always a responsibility to be factually correct and transparent. The FDIC made available a fact sheet on the day that the sale of IndyMac was announced that details the terms of the contract. It's too bad that the creators of this video opted to premise it on falsehoods."

Supplemental Facts about the Sale of Indymac F.S.B. to OneWest Bank

The FDIC is absolutely correct.

Full post as published by Calculated Risk on February 12, 2010 (boomark / email).