With TARP money, bonuses paid but foreclosures continue at Saxon Mortgage

Morgan Stanley executives received their bonuses, and the bank received TARP money. Has it helped Morgan Stanley’s saxon Mortgage? This is a quote well worth reading:

After the Haywoods bought this house, their mortgage was packaged with thousands of others and sold to investors — a common practice on Wall Street.

Their mortgage ended up with a subsidiary of Morgan Stanley, which received $10 billion in taxpayer bailout funds last year. But the Haywoods say none of that bailout money has trickled down to them.

They’ve tried to redo their loan with Saxon Mortgage — the Morgan Stanley subsidiary.

Van Osdol: “Have they offered to help you at all?”

Tony Haywood: “Nope, nothing. Called them yesterday to see if we could get a loan modification. Turned us down because not enough income.”

Saxon declined to comment on the Haywoods’ case. A Saxon spokeswoman says the company “is committed to working with qualified borrowers to structure solutions so they can remain in their homes.”

The bailout did not prevent Morgan Stanley from giving its top executives millions in bonuses — only, they’re not calling them that.

Listen to what company president James Gorman told top managers in a conference call first obtained by The Huffington Post:

Gorman: “There will be a retention award. Please do not call it a bonus. It is not a bonus. It is an award.”

Gorman: “I think I can hear clapping from here in New York, but I’m not sure about it, but you should be clapping because, frankly, that is a very generous and thoughtful decision that we have made.”

See the entire report here