Sep 26, 2008 8:28 pm US/Eastern
WBZ Seeks Answers For 'Curious' Money Questions
BOSTON (WBZ) ―
As relentless rain pours down on Boston's Financial District, WBZ is being flooded with
e-mails about the meltdown and bailout.
REWRITING MORTGAGESSonja of West Dennis is curious about banks not allowing individuals to rewrite their mortgages from their higher rates? "We are in a credit crisis. That what this is right now," says Susan Kaplan, president of Kaplan Financial Services who co-hosts WTKK's The Money Show. "The slightest impact on your credit score, one late mortgage payment, anything as small as that, and your credit score drops and you won't get the loan."
TAXPAYERS BECOME STOCKHOLDERS?
Fred of Durham, N.H. wants to know why taxpayers shouldn't become stockholders in any company that receives bailout money? "The taxpayer will become an investor in the assets that they're taking over," says Roger Brinner, Chief Economist at the Parthenon Group who was a professor at Harvard and M.I.T.
He explains that investors may double his money. "That's quite a healthy return to the taxpayer as though they were a stockholder."
GOLDEN PARACHUTE PAYMENTSPeter of Sudbury is curious about restrictions which will be put on golden parachute payments to executives of failed financial institutions? "The one issue that appears to be locked-in at this point is the refusal to let that happen," says Susan Kaplan.
BAILOUT = COMPENSATION?
Caroline of Mansfield wants to know if this bailout includes compensation of any type. "Whenever you take over an institution that's in trouble, often the C.E.O. is fired," says Roger Brinner. "You'd think that there's some payment due but there'll be a judgment call to make sure that they're not excessive."
Investors looking for a ray of sunshine at a time like this might consider the reminder of Susan Kaplan: the rebound is always steeper than the drop.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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