Rep Alan Grayson: Federal Reserve Owns Red Roof Inn Through Bailed Out Bear Stearns Commercial Mortgage Securities Trust

This is interesting, we own a hotel chain. Watch Rep. Alan Grayson explain how the Federal Reserve owns the Red Roof Inn through a bailed out Bear Stearns CMBS.  I remember on 3/31/2010 Crain's Chicago reported that a Chicago (Streeterville) Red Roof Inn was hit with a foreclosure suit and the debt was part of a $455 Billion CMBS in default.  I did a search and found the actual mortgage in a Bear Stearns CMBS Trust:  Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PWR17 (sec.gov) and Bear Stearns Commercial Mortgage Securities Trust, Series 2007-PWR18 (sec.gov). The New York Fed recently disclosed their holdings and BSCMS_07-PW17 A4, BSCMS_07-PW18 A4, BSCMS_07-PW18 A3 were on the list. Also remember in October 2009 I blogged that the Fed owned and was trying to sell the Crossroads Mall in Oklahoma for $24 million?

It's still there under REO (real estate owned) in Maiden Lane I. The Fed owns a lot of commercial real estate debt through the Bear Stearns bailout. Here is Maiden Lane I, II and III and the Grayson video below. "Rep. Alan Grayson discussed the Federal Reserve's purchase of debt from Bear Stearns, including debt from recently foreclosed Red Roof Inn's."




Red Roof Inn Inside BSCMS SERIES 2007-PWR17 (SEC.gov)

Red Roof Inn Inside BSCMS SERIES 2007-PWR18 (SEC.gov)

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