You may not know the name, you may not agree with his position, but you will hear about him and soon. In much the same way the Chrysler investors wanted their money to be doled out by a bankruptcy judge rather than the executive branch of government, William Frey is ready to do the same thing with mortgage investments.
The basis of his concern is the way the Obama Administration has strong armed most sectors facing bankruptcy. His investment firm of Greenwich Financial has major investments in the secondary mortgage markets. His investments are backed on a contract basis, and thus is his argument with Bank of America. He has warned them, that if they renegotiate home loans to affect the final bottom line of profits per the contract basis, he will sue them to recoup the money lost.
It seems that once the news circulated in the mortgage circles, the administration a.k.a. the Soprano’s first term, has acted with swiftness with their own threats. Democrats Barney Frank of Massachusetts, Maxine Waters of California, Luis Gutierrez of Illinois, Paul Kanjorski of Pennsylvania, Carolyn Maloney of New York, and Melvin Watt of North Carolina, otherwise known as the usual stirrers of the porcelain bowl answered accordingly. "Your decision is a serious threat to our efforts to respond to the current economic crisis, and if this cannot be arranged on a voluntary basis, then we will pursue further steps."
Frey is ready and willing to pursue this matter in court, and has already served suit papers to Countrywide Financial. This will set the precedence for further legal actions regarding the ignoring of contracts, or shall we say the ones only beneficial to the Administration.