Get ready for the Great Bond Insurer Taxpayer Bailout of 2008 - $130 Billion needed to bail out the corrupt pigs

This.

Is.

Sick.

The fact that private companies could lose this much money, with such obvious Ponzi Scheme business practices, is staggering.

And when Peter can't pay Paul, what do you do?

You get the taxpayers to bail Peter out.

This story will be big. The first of many "too big to fail" stories to come. And you think $130 billion is a lot?

Just wait until Fannie and Freddie. That bailout starts with a "T".

And just one question: WHERE THE HELL WERE THE AUDITORS (AGAIN)?

Jan. 29 (Bloomberg) -- Bond insurers led by MBIA Inc. and Ambac Financial Group Inc. may lose their top AAA ratings before they benefit from any rescue plan.

The bond insurance industry stands to lose $41 billion on securities linked to subprime and other mortgages, according to JPMorgan Chase & Co. analysts.

Bond insurers' total losses may be as high as $65 billion, according to Independent Strategy, a London-based financial consulting firm set up in 1994 by David Roche, a former head of research at Morgan Stanley. The estimate assumes a loss rate of 18 to 22 percent on $250 billion of credit derivatives linked to U.S. property, plus $90 billion of insurance on foreign real estate.

The insurers will need about $130 billion to cover the losses and to recapitalize, and the cash will have to come from taxpayers, Independent Strategy said in a statement today.

FLASH: FBI probing 14 un-named companies for mortgage fraud, insider trading and improper lending

First question - WHAT THE F*CK TOOK SO LONG?

Second question - WHAT THE F*CK TOOK SO LONG?

Man, I hope someone there reads HP. And ML-Implode too. It's all here. FROG MARCHES!! WE WANT FROG MARCHES!

Let's guess the 14 companies. Here's my list

1) Countrywide (of course)
2) IndyMac
3) First Federal
4) Wells Fargo
5) WaMu
6) CIT Group
7) Citigroup
8) Merrill Lynch
9) KB Home
10) Toll Brothers
11) Hovnanian
12) Fannie Mae
13) Freddie Mac
14) Bear Stearns

Man, it's tough to get it down to 14. Didn't even have room for MBIA and Ambac.

Thanks HP'ers for the link.

WASHINGTON (Reuters) - The FBI has opened investigations into 14 corporations as part of a crackdown on improper subprime lending, agency officials said on Tuesday.

FBI officials told reporters the probes involved potential violations including accounting fraud and insider trading.

They did not identify the companies, but said the probes reached across the industry to include developers, subprime lenders, companies that securitized loans and investment banks that held them.

The cases could lead to potential civil or criminal charges, the officials said.

The FBI said it was investigating the cases with the U.S. Securities and Exchange Commission, which has opened about three dozen investigations into the subprime market collapse.

Sarbanes and Oxley must be wondering what's taking so long to raid the offices of MBIA (and all the other corrupt REIC)

Frog marches and seizures. We want frog marches and seizures!!!

But they better hurry. The paper shredders are probably working overtime today at places like MBIA, IndyMac, Countrywide, WaMu, Fannie Mae, Freddie Mac, Sallie Mae and oh so many more...

MBIA Bond Risk Soars on $8.1 Billion CDO Disclosure

"We are shocked management withheld this information for as long as it did,'' Ken Zerbe, an analyst with Morgan Stanley in New York, wrote in a report yesterday. ``MBIA simply did not disclose arguably the riskiest parts of its CDO portfolio to investors.''