Marcy Wheeler has some important thoughts about the government’s proposal to convert GSE-owned properties into rental units, and the potential for abuse on the part of a new generation of slumlords. Call me crazy, but it seems the only reason such a program would be lucrative would be because it allowed one investor to corner [...]

Matt Stoller, who worked on Capitol Hill from 2009-10, writes that the Dodd-Frank Act made no structural changes to the banking system, and that his main focus, the audit the Fed amendment, merely allowed “for the beginning of a real debate over our monetary system.” We don’t really have real debates on much of anything [...]

Barry Ritholtz links to a complaint from MBIA, the insurance company, against Morgan Stanley over second lien securitization. MBIA is suing over breach of contract on a securitization known as MSM 2007-9SL, a pool of 5,000 second-lien loans. “Based on demonstrably false written representations during the pre-deal negotiations, Morgan Stanley fraudulently induced MBIA to issue [...]

Brian Beutler notes that Raul Grijalva’s letter opposing any benefit cuts to Social Security has the support of 55 House Democrats, with more expected before tomorrow’s circulation deadline. But this could just be a first step. I reported earlier this month that other options beyond a letter have been under discussion in the caucus: An [...]

Economist Dean Baker, writing today in TARP Martyrs: The Post Mourns Politicians Who Lost for Helping the Banks, contends that the late-2008 TARP Wall Street bank bailout was not necessary. First, he addresses risks to the commercial paper market, The most immediate threat to the system, which Fed Chairman Ben Bernanke and others highlighted, was [...]

The President met with leaders in the financial services industry, but three top bank CEOs decided not to show up and participated instead by phone. Three top bankers invited to the White House on Monday will not be able to attend in person because their flight was delayed due to bad weather but will participate [...]