Ally Pays Fannie - Robbing from Peter...

Recall that Ally is, for the most part, owned by Uncle Sam.  This is kinda like a little New Year's gift to himself.  While the payment is somewhat more than Ally had set aside, there is no way that our benevolent government ("OBG") would have financially harmed its investment.

(NYT) Ally Financial said Monday that it would pay $462 million to settle buyback claims on $292 billion in home loans it sold to Fannie Maebefore the industry tightened underwriting standards in the wake of the financial crisis.

GMAC Mortgage, which is part of Ally’s Residential Capital unit, originates and services loans then sells them to the government-sponsored mortgage companies Fannie Mae and Freddie Mac. As part of their repurchasing deals, Fannie and Freddie have the option to challenge Ally’s underwriting standards. If successful, they could have required Ally to buy back the loans in question.

The settlement covers loans that GMAC serviced for Fannie Mae before June 30 and all mortgage-backed securities that Fannie Mae bought from the company. The $462 million is slightly more than the reserves that Ally had set aside to cover a potential deal.

Government Insider Trading - Still Legal

Read, vomit, repeat.

A congressman vowed to renew his efforts to outlaw insider trading by Capitol Hill members and their staffs, following a Wall Street Journal investigation showing that congressional aides traded in companies overseen by their bosses.Rep. Brian Baird (D., Wash.) and a handful of other lawmakers including Rep. Louise Slaughter (D., N.Y.) have for years supported legislation that would explicitly make it illegal for members and their aides to trade stocks and other securities based on non-public information gleaned from the legislative process. Mr. Baird, however, retires at the end of this year.

When the bill—the Stop Trading on Congressional Knowledge Act, or Stock Act—was introduced nearly five years ago, just 14 other lawmakers endorsed it.A current version of the bill has fared worse, with support from just nine lawmakers. There is no companion legislation in the Senate.

Congress is immune from insider-trading laws; federal regulators have never brought an insider-trading case against either congressional members of their staffs. Unlike many executive branch employees, lawmakers and aides don't have restrictions on their stock holdings and ownership interests in companies they oversee. 

Some legislators remain undecided about supporting the legislation. That includes House Speaker Nancy Pelosi of California. The Journal reported Monday that a top aide to Ms. Pelosi profited by the trading of shares of Freddie Mac and Fannie Mae in a brokerage account with her husband two days before the government authorized emergency funding for the companies.The aide said she had no knowledge of the trades when they were made, and the husband said he bought the stock after reading a news article.

The rest here:  Govt Insider Trading

"and that government of the people, by the people, for the people, shall not perish from the earth."

Perhaps it has.  There is no support for legislation that imposes the laws "the people" are bound to on their elected representatives?  Does this somehow limit their ability to do their jobs and enact fair legislation?  If I wasn't feeling beaten down enough, this has surely helped.

Perhaps it is best if our government never again raises issues with corruption on foreign shores.