Title Insurance

Highway to the Danger Zone

With everything that’s happening in the financial sector right now, I’m wondering why I have to take responsibility for my business decisions but no one else has to. It kind of pisses me off. You can spend nearly a hundred years running amok doing whatever you want, not ever doing the right thing until you’re forced by the government (air bags, seat belts, Firestone 500’s) and then take not one, not two but three private jets to your hearing and we’re still talking about giving you asshats a bail out? Explain to me why BMW can build a 4200 lb vehicle that gets 32mph on the highway and you jerkoffs can build a Yukon. Or a Hummer? Or some “fuel efficient” piece of shit that explodes like a Lego car on impact? We ought to let you dumb bastards go under. And keep my tax dollars. And while we’re at it, can we put the AIG executives in jail for criminal stupidity? Or maybe grand larceny. We’re bailing these asswipes out while JOE FREAKING SIX PACK is losing his house. One after another after another. I see entire neighborhoods failing. This isn’t just fringe people who shouldn’t have bought a house in the first place, it’s cutting across the entire country. And we’re listening to the CEO’s of the Big Three after they fly private jets to Washington to ask for a hand out. That’s how out of whack this country has gotten. I’d like to pay 30 percent less on my mortgage. Sign me up.

Joint Statement by Treasury, Federal Reserve and the FDIC on The Wine Dog


Washington, DC— The U.S. government is committed to supporting financial market stability, which is a prerequisite to restoring vigorous economic growth. In support of this commitment, the U.S. government on Sunday entered into an agreement with the Wine Dog to provide a package of guarantees, liquidity access and capital.

As part of the agreement, Treasury and the Federal Deposit Insurance Corporation will provide protection against the possibility of unusually large losses on an asset pool of approximately $306 billion of loans and securities backed by residential and commercial real estate and other such assets, which will remain on Wine Dog’s balance sheet. As a fee for this arrangement, Wine Dog will issue preferred shares to the Treasury and FDIC. In addition and if necessary, the Federal Reserve stands ready to backstop residual risk in the asset pool through a non-recourse loan.

In addition, Treasury will invest $20 billion in Wine Dog from the Troubled Asset Relief Program in exchange for preferred stock with an 8% dividend to the Treasury. Wine Dog will comply with enhanced executive compensation restrictions and implement the FDIC’s mortgage modification program.

With these transactions, the U.S. government is taking the actions necessary to strengthen the financial system and protect U.S. taxpayers and the U.S. economy.

We will continue to use all of our resources to preserve the strength of our banking institutions and promote the process of repair and recovery and to manage risks. The following principles guide our efforts:

  • We will work to support a healthy resumption of credit flows to households and businesses.
  • We will exercise prudent stewardship of taxpayer resources.
  • We will carefully circumscribe the involvement of government in the financial sector.
  • We will bolster the efforts of financial institutions to attract private capital.
  • Attachment:
    Summary of Terms (PDF Help)
    Media Contact:
    Andrew Gray (202) 898-7192

    Now I’m hearing ruminations that LandAmerica might get some bail out money. At least they’re cheap, the stock is what .51 cents this morning? Why does Ted still have a job? I can tell you what the problem is. They’re doing primarily REO business and they’re charging virtually nothing for the service. It doesn’t work when that’s the only business you have going. It’s fine when you’re laying down a base of solid sales, but that’s not happening right now. They can’t survive on that business model. It’s time they went back to the future and did things old school. The product is the product is the product. If you’re writing a policy and doing an escrow, charge properly for the service. Title companies survived for years doing real work in good and bad times. The new casualty model is going to make Ted’s Excellent Title Adventure a casualty. He will have the distinction of being the dumb ass that shut down the first title insurance company ever. Nice job Teddy. It’s time LandAmerica’s board stepped up to the plate and made the hard decision. They’re in a flat spin heading out to sea. It’s just a matter of time before the jetwash takes them out.

    Which gets me to the final part of this morning’s rant. Maybe you’re failing because of karma. Maybe sending our jobs overseas is what got you into this mess. Maybe you deserve to fail for sending American jobs to other countries where the work is done for pennies on the dollar. Maybe that’s why GM and Ford and Chrysler and LandAmerica and the rest of you all deserve to fail. Karma. She’s a bitch.


    • insguy

      I thought Ohio had the first TI Company to go under? All those cancelled policies…

      Also, wasn’t it the 1031x that brought down Teddy?

    • Wine Dog

      They may have, I meant the first title company, which was a predecessor to Commonwealth.

      I’m guessing the 1031 had something to do with it. Having worked there I can make some other guesses as well.

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