Tuesday, September 1, 2009

Paging Peter Schiff

Connecticut needs you.

Senator Christopher Dodd is getting more blatant with his crony maneuvers than ever.

Dodd (C-CT) sent a letter to The Federal Reserve chairman Bernanke, earlier this month that took Fed employees by surprise, according to Forbes.

In the letter, Dodd said mortgage servicers were concerned that the terms for the Term Asset-Backed Securities Loan Facility advances were not “economically viable” and asked Mr. Bernanke for his “views on the matter.”

One reason the letter caused surprise was because it benefited one firm more than any other: Carrington Mortgage, a division of the Connecticut-based hedge fund Carrington Capital.

Writes Dealbook:
Dodd’s letter was a rare coup for Carrington, a crucial player in the subprime mortgage industry, and one that has been attracting the wrong kind of attention lately....

Included in the issues facing Carrington are a lawsuit that alleges the firm takes advantage of borrowers, accusations by the billionaire, Wilbur Ross, who asserts the firm tries to interfere with his servicing business in order to enrich itself and a $508 million advance to investors in May.

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