Three Million Dollar Taxpayer Funded FRM Bailout? - Granite Grok

Three Million Dollar Taxpayer Funded FRM Bailout?

Today there will be a House Committee vote on SB180, a bill establishing a taxpayer funded bailout fund for investors who got swindled by the FRM Mortgage ponzi scheme.

I’ll be honest.  I’m not interested in any particulars on this.  The amended cost for the legislation is $3,000,000.00 dollars (initially) to pay off investors who read some paperwork  took a risk, and got screwed.  I feel bad.  The perpetrators were prosecuted and went to jail.  One of them for 20 years.  But I am not–that’s NOT–responsible for paying them back for their losses just because the bastards happened to have their office in my state, and I’m a bit pissed off that the State Senate originated and passed this bill.

Why should we be on the hook*?  And, as pointed out over at CNHT  (great article by the way, go read it) this sets a bad precedent .

The Better Business Bureau is not being held responsible.   The Lynch administration had oversight at the time but no one has suggested going after John Lynch for three million.  So why are New Hampshire legislators making New Hampshire families the backstop for every risk taker who does business with anyone in our state?

And oh, sorry.  It is not a $3,000,000.00 dollar bail out.  it is three million a year until the claims have been satisfied.

*The bill creates a recovery fund, funded by a $3,000,000 general fund appropriation each fiscal year until all claims have been satisfied.

 

 

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