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Highlights from Investors Unite Chairman Tim Pagliara Speech at Southeastern Banking Seminar in Nashville, Tennessee

Investors Unite Executive Director Tim Pagliara addressed 100 top banking executives during the Southeastern Banking Seminar’s annual conference at Waller, Lansden, Dortch & Davis, LLP in Nashville, Tennessee on Friday, August 15.

Pagliara’s presentation, “Getting the Nation’s House(ing) in Order: A Look at the GSEs, the Growing U.S. Deficit and the Road Ahead,” tackled topics including the legal challenges to the third amendment sweep and the importance of the rule of law in housing finance. 

Here are some highlights we thought you would enjoy:

“The GSEs have become the private piggy banks of the Treasury.”

“The power of attorney that I hold for Aunt Agnes, it allows to be buy, sell, make contracts, borrow money, if I operate in the best interest of Aunt Agnes. Now if you substitute the US treasury into that position…”

“Yale Law professor Jonathan Macey stated in a recent white paper, ‘Politicians are running roughshod over the rule of law as they seek to rob private citizens of their assets to achieve their amorphous political objectives. If we were speaking of some banana republic, this would be par for the course—but this is unfolding in the United States today.'”

“Scott Simon, the head of mortgage-backed securities investing at Pimco, the world’s largest fixed-income manager ($2 trillion) remarked, ‘Most of the people who think we should shut the GSEs down have a pure philosophical belief and they don’t care what the outcome is. Or they simply don’t understand anything about how housing finance works.'”

“Former Chair of the FDIC William Isaac stated in a recent op-ed, ‘It’s essential in these situations to adhere to the rule of law—in this case the Housing and Economic Recovery Act—and to a process that produces predictable and orderly consequences.’”