Biggest bankruptcy in history, plus..

[kallend 1,640]

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The party with the VOTES to pass the bill - which is not the minority party.

Nice attempt to pass the potato, though.

Wow - kallend blaming the Dems for something? Whoda thunk?

You did see the date of the article, right?

September 11, 2003

...

The only sure way to survive a canopy collision is not to have one.

[rushmc 18]

This IS related to your posts.

How? these companies were forces as well to follow the rules of Freddie or Fannie or face fines....

....and it is a "It is Clintons Fault" in part...

Along with the Dems that benifited the most.

Obama is the number 2 to benifit from Freddie and Fannie

And who from these two Gov failers are now Obamas economic advisers? Anybody care to guess?

http://money.cnn.com/2008/09/10/news/economy/lockhart_profile/?postversion=2008091014

http://www.nolanchart.com/article4889.html

http://ap.google.com/article/ALeqM5iWDiGtSt1C-wK8_5i7jdAw8ICPMwD937DD180

http://www.fool.com/investing/dividends-income/2008/09/10/the-people-responsible-for-fannie-mae-and-freddie-.aspx

http://hotair.com/archives/2008/09/16/whose-policies-led-to-the-credit-crisis/

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[piper17 1]

Ohh, Kallend. The Democrats are not entirely to blame for the Fannie Mae/Freddie Mac problems but look at my previous posting regarding what politicians got the biggest campaign donations from these agencies....Chris Dodd (D. CT) and Barack Obame (D. IL) are at the very top of the list of those politicians getting the most money. These two quasi-government/private agencies bought the support of politicians of both parties but those benefitting the most not to mention obtaining mortgages (note the plural) at rates below market rate and no closing costs were Democrats.

Nice attempt to avoid reality, however.

"A man can never have too much red wine, too many books, or too much ammunition"...Rudyard Kipling

[kallend 1,640]

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This IS related to your posts.

How? these companies were forces as well to follow the rules of Freddie or Fannie or face fines....

....and it is a "It is Clintons Fault" in part...

Along with the Dems that benifited the most.

Obama is the number 2 to benifit from Freddie and Fannie

And who from these two Gov failers are now Obamas economic advisers? Anybody care to guess?

http://money.cnn.com/2008/09/10/news/economy/lockhart_profile/?postversion=2008091014

Do you ACTUALLY read the articles you link? This one is about James Lockhart, "a longtime Bush friend".

...

The only sure way to survive a canopy collision is not to have one.

[rushmc 18]

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This IS related to your posts.

How? these companies were forces as well to follow the rules of Freddie or Fannie or face fines....

....and it is a "It is Clintons Fault" in part...

Along with the Dems that benifited the most.

Obama is the number 2 to benifit from Freddie and Fannie

And who from these two Gov failers are now Obamas economic advisers? Anybody care to guess?

http://money.cnn.com/2008/09/10/news/economy/lockhart_profile/?postversion=2008091014

Do you ACTUALLY read the articles you link? This one is about James Lockhart, "a longtime Bush friend".

YOU are the one that did not read all they through.

Of course the spin is going to be there for both sides but Clinton policy and congress NOT allowing further oversite when for 10 years it has been said the problem is coming.

The same that told us this was coming are the ones forcasting the fail of medicare and SS.

Head in the sand sir, is what you are doing if you say Bush is to blame. Look at the record and you will see he and his admin tried to intervien, Chuck Schumer and others stopped it. Why?

See who got the most money from Fannie, Freddie and the institutions you original post is about.

I doubt you will post what you find..........

Rober Roush is saying Clinton did it (but he got out before Clinton finshed the deal)

Read an learn sir. this is perfect example of the gov being involved in the private sector and fucking it up and then, and then, blaming it on big corps and capitalism instead of the Gov being investigated and people jailed for criminal incompitance. (Remember your screams over Enron? I DO!!) And two of the big ones are on Obamas economic commitee.

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[akarunway 1]

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>Lehman Bros files for the biggest bankruptcy in history, and ML goes down too.
>AIG doesn't seem far behind.

They're all just a bunch of whiners; the fundamentals of the economy are strong. Haven't you been paying attention?

LOL. That's why I took all my money outta WAMU yesterday and advised all my fiends to do the same. Yeah. Life is good. Nothing like a good run on a bank.

I hold it true, whate'er befall;
I feel it, when I sorrow most;
'Tis better to have loved and lost
Than never to have loved at all.

[akarunway 1]

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Kallend:

Who was greedy? I'd say "everyone."

Just ironically most of the bad stuff happens under your boys.

Cry me a river...the dot.com bubble was the best smoke/mirror play yet...

These events with banking are simply the wrong play with money they thought wouldn't stop flowing. Frankly, how these guys didn't prepare is astonishing.

Shoe me the indicators of the Dot.com bubble burst. How did it affect otehr apects of teh economy, the DJI, the unemp rate, all aspects; what was the harm in indicator numbers? Also, how was Clinton supposed to regulated it? We kno Bush should have directed the Chairman of the Reserve to not keep rates so low so long, buthe didn't want to preside over a recession, so now Obama get sto inherit one.

The President has no power over the Fed. In case you haven't noticed, following a measured reduction in the prime rate following 9/11, the Fed raised the rate, every meeting, from June 2003 through June 2006 where it remained steady until September 2007.

The Fed has noted numerous times that one of their primary concerns is inflation. With the lower rates following 9/11, the inflation went up, but so did economic growth. Personally, I think the Fed screwed up by raising rates at every meeting, 425 basis points within three years, only to have to reverse course within a year following, down by 325 since September 2007.

Now, they can't reduce rates any further because of inflation and the weak dollar, and if they raise rates, they'll push things uphill just enough to slow things down, while strengthening the dollar, but stalling growth.

The dot.com bubble occurred with the Fed raising rates the keeping them elevated through 2000. The "virtual" money evaporated, and all those 25 year old CEOs and their dot.com left the entire tech sector, telecom, et al, reeling...take your pick..NORTEL peaked at 603/sh in Sep 2000. Alcatel/Lucent same pattern...Cisco...

"The president has no power over the fed" What fucking world do you live in?

I hold it true, whate'er befall;
I feel it, when I sorrow most;
'Tis better to have loved and lost
Than never to have loved at all.

[lawrocket 3]

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The administration's proposal, which was endorsed in large part today by Fannie Mae and Freddie Mac, would not repeal the significant government subsidies granted to the two companies. And it does not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enables them to issue debt at significantly lower rates than their competitors.

So we are witnessing yet another failure of the attempt to offer market-level goods and services for below market costs. We've seen what happened to other companies that tried to do it - KAPUT! And now these companies are facing these same issues.

Other businesses that followed the model have failed or are failing. These two can get out of it on the public dollar.

My wife is hotter than your wife.

[BIGUN 1,067]

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I didn;t vote for a government that pushed deregulation as its mantra.

Actually you may have... http://www.wsws.org/articles/1999/nov1999/bank-n01.shtml

Nobody has time to listen; because they're desperately chasing the need of being heard.

[chuteless 1]

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All thanks to greed and debt.

The American Dream is built on greed..... so this looks good on the USA.

Well deserved.

[lawrocket 3]

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I didn;t vote for a government that pushed deregulation as its mantra.

Actually you may have... http://www.wsws.org/articles/1999/nov1999/bank-n01.shtml

Yep. That's the Gramm-Leach-Bliley bill that I have referred to several times.

Of coruse, the threat of oligopolies, etc., never really panned out. Just a bunch of banks trying out insurance and stocks, insurers trying out banking and stocks, and brokerages trying out banking and insurance.

My wife is hotter than your wife.

[airdvr 198]

Christ I remember that GLB shit and the headaches it caused my business. Opt-in or opt-out, privacy statements, mail out a new one every year. I wonder if they realize how many trees died a futile death for that one.

Please don't dent the planet.

Destinations by Roxanne

[Gawain 0]

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"The president has no power over the fed"
What fucking world do you live in?

They (the board of Governors) are appointed by the President to serve a 14 year term. The Federal Reserve System is its own "cartel" of sorts. It is largely independent of oversight, even though there is a measure of political control. The President can't just call them up and say, "Hey, let's raise rates for a while, and print money too."

So, to answer your question, I live in reality, and tend to observe life through a sober lens.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[mnealtx 0]

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The party with the VOTES to pass the bill - which is not the minority party.

Nice attempt to pass the potato, though.

Wow - kallend blaming the Dems for something? Whoda thunk?

You did see the date of the article, right?

September 11, 2003

Nope - didn't see that.

Regardless, if the problem was known since 2003, why didn't the Dems come riding to rescue when they gained the majority in '06, like they did with getting the troops out of Iraq, stopping earmarks.... oh, wait...

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706

[livendive 8]

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Head in the sand sir, is what you are doing if you say Bush is to blame.

George W. Bush, September 2, 2004,

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Thanks to our policies, home ownership in America is at an all- time high. Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."

George W. Bush, February 18, 2008

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I think this economy is down because we built too many houses and the economy's adjusting.

Blues,
Dave

"I AM A PROFESSIONAL EXTREME ATHLETE!"
(drink Mountain Dew)

[SkyDekker 1,136]

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George W. Bush, September 2, 2004,
--------------------------------------------------------------------------------
Quote
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Thanks to our policies, home ownership in America is at an all- time high. Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."

--------------------------------------------------------------------------------


George W. Bush, February 18, 2008
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I think this economy is down because we built too many houses and the economy's adjusting.

Priceless.

It will be years before we will truly find out what happened. But I have this nagging feeling it isn't over yet....

[piper17 1]

Recalling McCain’s statement in support of a Senate reform bill in 2005:

“If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.” –John McCain, May 26, 2005

Where was Obama?

Today, in a speech in Cedar Rapids Iowa, John McCain asks:

The dominos that we have seen fall this week began with the corruption and manipulation of our home loan system. The reason this crisis started was the abuses that took place within our home loan agencies, Fannie Mae and Freddie Mac and within our home loan system.

Two years ago I warned this Administration and Congress that regulations for our home loan agencies, Fannie Mae and Freddie Mac, needed to be fixed…

But nothing was done.

Senator Obama talks a tough game on the financial markets but the facts tell a different story. He took more money from Fannie and Freddie than any Senator but the Democratic chairman of the committee that regulates them. He put Fannie Mae’s CEO who helped create this disaster in charge of finding his Vice President. Fannie’s former General Counsel is a senior advisor to his campaign. Whose side do you think he is on? When I pushed legislation to reform Fannie Mae and Freddie Mac, Senator Obama was silent. He didn’t lift a hand to avert this crisis. While the leaders of Fannie and Freddie were lining the pockets of his campaign, they were sowing the seeds of the financial crisis we see today and enriching themselves with millions of dollars in payments. That’s not change, that’s what’s broken in Washington

"A man can never have too much red wine, too many books, or too much ammunition"...Rudyard Kipling

[piper17 1]

Covering His Fannie
Thursday, September 18, 2008

OBAMA A TOP RECIPIENT IN CONTRIBUTIONS FROM FANNIE MAE, FREDDIE MAC AND LEHMAN BROTHERS
Obama Ranks Second Among Donations From Fannie Mae And Freddie Mac Among All Members Of Congress Since 1989:

In Just Four Years, Obama Has Received More Money From Fannie Mae And Freddie Mac Than Any Other Member Of Congress In The Past Two Decades (Since 1989) Except Senate Banking Committee Chairman Sen. Chris Dodd. (Lindsay Renick Mayer, “Fannie Mae And Freddie Mac Invest In Lawmakers,” Center For Responsive Politics’ “Capital Eye” Blog, www.opensecrets.org, 9/11/08)

Dodd Has Served In Federal Office Since 1975. (The Washington Post Website, www.washingtonpost.com, Accessed 9/15/08)

•Obama Has Served In Federal Office Since 2005. (The Washington Post Website, www.washingtonpost.com, Accessed 9/15/08)
Obama Ranks Second Among Donations From Lehman Brothers Among All Members Of Congress Since 1989:

In Just Four Years, Obama Has Received More Money From Lehman Brothers Than Any Other Member Of Congress In The Past Two Decades (Since 1989) Except Sen. Hillary Clinton. (Lindsay Renick Mayer, “Brothers Grim: Is Lehman Next?” Center For Responsive Politics’ “Capital Eye” Blog, www.opensecrets.org, 9/12/08)

Top Executives At Lehman Brothers Are Obama Bundlers:

Ted Janulis, Head Of Mortgage Capital At Lehman Brothers Until His Retirement In September 2008, Is A Bundler For Obama’s Presidential Campaign Committed To Raising $50,000 To $100,000. (Obama For America Website, www.barackobama.com, Accessed 5/19/08)

John Rhea, A Managing Director And Co-Head Of Global Consumer And Retail Investment Banking For Lehman Brothers, Is A Bundler For Obama’s Presidential Campaign Committed To Raising $50,000 To $100,000. (Obama For America Website, www.barackobama.com, Accessed 5/15/08)

“[N]adja Fidelia, Who Is Also A Managing Director At Lehman Brothers, Has Raised At Least $50,000 For Mr. Obama…” (Timothy Williams, “Obama Takes His Campaign to Harlem,” New York Times, 11/30/07)

OBAMA ADVISOR JIM JOHNSON FORMER FANNIE MAE AND LEHMAN BROTHERS EXECUTIVES EXPANDED LOBBYING ACTIVITIES AND RECEIVED MILLIONS IN COMPENSATION
Former CEO Of Fannie Mae And Former Obama Advisor Jim Johnson Resigned Under Criticism:

Jim Johnson Is The Former CEO Of Fannie Mae. (David A. Vise, “Fannie Mae Lobbies Hard To Protect Its Tax Break,” The Washington Post, 1/16/95)

“Jim Johnson, The Former Chairman Of Fannie Mae Who Was One Of Three Advisors Tapped By Democrat Barack Obama To Vet Vice Presidential Candidates, Resigned Today After Questions Were Raised About Favoritism He May Have Received From Countrywide Financial Corp.” (Johanna Neuman, “Barack Obama Advisor Jim Johnson Quits Under Fire,” Los Angeles Times, 6/12/08)

Johnson Remains A Bundler For Obama’s Presidential Campaign And Has Committed To Raising $100,000 To $200,000. (Obama For America Website, www.barackobama.com, Accessed 5/19/08)

Johnson Earned Large Bonuses At Fannie Mae Due To An Accounting Manipulation:

In 1998, Fannie Mae’s Earnings Were Manipulated, Which Resulted In “Maximum Payouts” To Executives Including CEO Jim Johnson. “As CEO of Fannie Mae, Johnson, a former chief of staff to Vice President Walter F. Mondale and chairman of the board of the Kennedy Center, was the beneficiary of accounting in which Fannie Mae’s earnings were manipulated so that executives could earn larger bonuses. The accounting manipulation for 1998 resulted in the maximum payouts to Fannie Mae’s senior executives — $1.9 million in Johnson’s case — when the company’s performance that year would have otherwise resulted in no bonuses at all, according to reports in 2004 and 2006 by the Office of Federal Housing Enterprise Oversight.” (Jonathan Weisman and David S. Hilzenrath, “Obama ’s Choice Of Insider Draws Fire,” The Washington Post, 6/11/08)

•The Manipulation Resulted In Johnson Receiving A Bonus Of Over $1.9 Million When He Otherwise Would Not Have Earned A Bonus. “An Office of Federal Housing Enterprise Oversight report in September accused the company of improperly deferring $200 million of estimated expenses in 1998, which allowed management to receive full annual bonuses. Had the expenses been recorded that year, no bonuses would have been paid, the report said. Fannie Mae reported paying bonuses in 1998 to Johnson, who received $1.932 million; Raines, who then was chairman-designate, $1.11 million; Chief Operating Officer Lawrence M. Small, $1.108 million; Vice Chairman Jamie S. Gorelick, a former deputy attorney general, $779,625; Chief Financial Officer J. Timothy Howard, $493,750; and Robert J. Levin, who was executive vice president for housing and community development, $493,750.” (Albert B. Crenshaw, “High Pay At Fannie Mae For The Well-Connected,” The Washington Post, 12/23/04)
Johnson Also Received Fees And Compensation From Fannie Mae Worth $3.3 Million Between 2001 And 2006. “Johnson left the company before it was swept up in an accounting scandal that tarred its reputation, but even during the years of scandal, Johnson was reaping hundreds of thousands of dollars in consulting fees and other compensation, $3.3 million in all between 2001 and 2006.” (Jonathan Weisman and David S. Hilzenrath, “Obama’s Choice Of Insider Draws Fire,” The Washington Post, 6/11/08)

Fannie Mae Incorrectly Reported Losses That Allowed Johnson To Receive A Large Bonus For The Year:

In 1998, Fannie Mae Improperly Deferred $200 Million Dollars In Expenses, Which Allowed Johnson To Receive Nearly $2 Million In Bonuses; Johnson Would Not Have Received A Bonus If The Money Had Been Properly Expensed. “An Office of Federal Housing Enterprise Oversight report in September accused the company of improperly deferring $200 million of estimated expenses in 1998, which allowed management to receive full annual bonuses. Had the expenses been recorded that year, no bonuses would have been paid, the report said. Fannie Mae reported paying bonuses in 1998 to Johnson, who received $1.932 million; Raines, who then was chairman-designate, $1.11 million; Chief Operating Officer Lawrence M. Small, $1.108 million; Vice Chairman Jamie S. Gorelick, a former deputy attorney general, $779,625; Chief Financial Officer J. Timothy Howard, $493,750; and Robert J. Levin, who was executive vice president for housing an d community development, $493,750.” (Albert B. Crenshaw, “High Pay At Fannie Mae For The Well-Connected,” The Washington Post, 12/23/04)

Johnson Engineered An Effort To Lobby Politicians So That Fannie Mae Would Not Have To Pay Local Taxes To Washington, D.C.:

While Johnson Was CEO, Fannie Mae Did Not Have To Pay Washington D.C. Taxes Which Cost The City Hundreds Of Millions Per Year. “While Wall Street benefits from Fannie Mae’s prosperity, the District government does not. Fannie Mae, the biggest, most profitable company in Washington, is exempt from local income taxes. That exemption costs the cash-strapped D.C. government hundreds of millions of dollars a year.” (David A. Vise, “The Financial Giant That’s In Our Midst,” The Washington Post, 1/15/95)

•”If Fannie Mae Were Required To Pay Taxes, It Would Wipe Out The District’s Budget Deficit.” (David A. Vise, “The Financial Giant That’s In Our Midst,” The Washington Post, 1/15/95)
•Johnson Said That Fannie Mae Was “The Most Powerful Financial Firm In America” And He Urged Employees To Oppose Any New Taxes On The Company. “There is no reason they shouldn’t be subject to the tax,” said former House District Committee chairman Pete Stark. “It is not fair. They make huge profits,” the California Democrat said. The tax break is one of numerous congressionally conferred advantages that Fannie Mae officials preserve through a polished political operation directed by Jim Johnson, the company’s chairman and chief executive. In a talk with employees, Johnson described Fannie Mae as ‘the most powerful financial firm in America.’ He wants Fannie Mae employees to oppose forcefully any ne w effort to tax the company.” (David A. Vise, “The Financial Giant That’s In Our Midst,” The Washington Post, 1/15/95)
Johnson Devised A Strategy To Lobby D.C. Politicians So That Fannie Mae Would Not Have To Pay Local Taxes. “Last summer, D.C. Councilman Bill Lightfoot discovered a simple solution to the District’s financial crisis: eliminate a $ 300-million-a-year tax break for the city’s most profitable company, Fannie Mae. ‘I believe Fannie Mae ought to pay local taxes,’ Lightfoot said. ‘It practically solves the city’s financial crisis in one year. There is no public policy reason to exempt them. It is not fair.’ Inside Fannie Mae’s sprawling Wisconsin Avenue headquarters, Lightfoot’s proposal set off alarms. A team of executives led by chief executive Jim Johnson and Vice Chairman Frank Raines gathered around the firm’s 34-foot-long boardroom table to dec ide how to respond. They devised a bold strategy: Use the company’s considerable resources and political clout to prevent Lightfoot’s proposal from being voted on or publicly debated by council members, whom they feared would support the tax if it got on the agenda. ‘The task was to keep it from ever seeing the light of day,’ said Frederick D. Cooke Jr., one of the highly regarded lobbyists Fannie Mae hired to quash the proposal. ‘What we didn’t want to do was have a big public debate about this.’” (David A. Vise, “Fannie Mae Lobbies Hard To Protect Its Tax Break,” The Washington Post, 1/16/95)

•”In Addition To Enlisting The Lobbying Help Of The Local Charitable Groups It Supported, Fannie Mae Hired A Team Of Top Lobbyists To Persuade D.C. Politicians To Drop The Tax Proposal Without A Vote.” (David A. Vise, “Fannie Mae Lobbies Hard To Protect Its Tax Break,” The Washington Post, 1/16/95)
In 1998, Johnson Opened A Lobbying Office For Fannie Mae In Oklahoma:

In 1998, Johnson, Then-CEO Of Fannie Mae, Hosted The Opening Ceremony Of A Lobbying Office In Oklahoma. “The concern is whether such efforts were made to bolster Fannie’s business more than to advance philanthropic goals. Critics say the foundation helped to reinforce ties with various congressional groups forged by Fannie’s in-house lobbyists. At times the two seemed indistinguishable: They often sponsored events in tandem. Both were big donors to the CBCF’s annual awards gala in 2003 and a similar black-tie event for the Congressional Hispanic Caucus Institute in 2002. In 1998, then-CEO Jim Johnson hosted the opening ceremony of a lobbying and public relations office in Oklahoma, an event attended by former Oklahoma Governor Frank Keating and then-Senator Don Nickles (R-Okla.). But wearing his other hat as the foundation’s chairman, Johnson al so took the opportunity to announce $125,000 worth of grants to local charities.” (Dawn Kopecki, “Philanthropy, Fannie Mae Style,” Business Week, 4/2/07)

Johnson Recruited Current Obama Economic Policy Advisor Former Commerce Secretary William Daley As A Lobbyist For Fannie Mae:

Former Commerce Secretary William Daley Serves As An Obama Advisor For Economic Policy. “At his stop in New Mexico, Obama sought to keep the focus almost exclusively on the economy, appearing with a panel of experts that included William Daley, brother of Chicago Mayor Richard Daley and a former U.S. commerce secretary.” (John McCormick and Jill Zuckman, “Rivals Spend Day As Frequent Fliers,” Chicago Tribune, 2/2/08)

Former Fannie Mae CEO Jim Johnson Recruited Former Sec. Daley As A Lobbyist For Fannie Mae. “Fannie’s government relations operations dramatically expanded in the mid-1990s, when then-CEO Johnson recruited Washington A-listers Robert Zoellick, who served in the Reagan and Bush administrations; Lawrence M. Small, former secretary of the Smithsonian Institution; and William M. Daley, commerce secretary in the Clinton administration.” (Lisa Lerer, “Fannie, Freddie Spent $200M To Buy Influence,” The Politico, 7/16/08)

From 2002 Through 2005, Daley Was A Registered Lobbyist For Fannie Mae. (U.S. Senate Office Of Public Records Website, soprweb.senate.gov, Accessed 7/27/08)

Before Heading Fannie Mae, Johnson Was A Registered Foreign Agent For Lehman Brothers:

In The 1980s, Johnson Worked For Shearson Lehman Brothers. “In the early 1980s Johnson had already started his own Washington consulting company, Public Strategies, with his Carter administration colleague Richard Holbrooke. And now he followed Holbrooke to Wall Street as an investment banker at Shearson Lehman Brothers.” (Lloyd Grove, “The Big Chair,” The Washington Post, 3/27/98)

OBAMA ADVISOR FRANK RAINES: FORMER FANNIE MAE CEO INVOLVED IN ACCOUNTING SCANDAL

Obama Has Solicited Advice From Former Fannie Mae CEO Franklin Raines Who Was “Under The Shadow Of A $6.3 Billion Accounting Scandal”:

The Obama Campaign Has Solicited Franklin Raines, Who “Stepped Down As Fannie Mae’s Chief Executive Under The Shadow Of A $6.3 Billion Accounting Scandal,” For Advice On Mortgage And Housing Policy. “In the four years since he stepped down as Fannie Mae’s chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case’s D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters.” (Anita Huslin, “On The Outside Now, Watching Fannie Falter,” The Washington Post, 7/16/08)

Like Jim Johnson, Raines Received Low-Rate Home Loans From Countrywide, A Major Seller To Fannie Mae. “Fannie Mae’s former CEO, Jim Johnson, resigned Wednesday as the leader of likely Democratic presidential nominee Barack Obama’s search for a running mate after The Wall Street Journal reported that he and another former CEO, Franklin Raines, received low-rate home loans from troubled mortgage lender Countrywide Financial Corp. a major seller of home loans to Fannie Mae.” (Alan Zibel, “Fannie Mae CEO Says Ethics Policy Bans Discounts,” The Associated Press, 6/12/08)

Former Fannie Mae Chairman Frank Raines Was Accused Of Manipulating The Company’s Earnings. “Former Fannie Mae chairman and chief executive Franklin D. Raines, accused of manipulating the housing finance company’s earnings, is challenging regulators to make their case against him beginning Feb. 16 instead of waiting until the end of the year.” (David S. Hilzenrath, “Fannie Mae’s Former Chief Wants Earlier Hearing Date,” The Washington Post, 2/6/07)

Raines Was Forced Out As Fannie Mae’s CEO In December 2004. “Former chief executive Franklin D. Raines and chief financial officer J. Timothy Howard were forced out Tuesday night after accounting mistakes that could cost Fannie $9 billion in reported profit.” (David S. Hilzenrath, “Fannie Mae Exit Packages Face Review,” The Washington Post, 12/23/04)

Under Raines’ Leadership, Fannie Mae Committed “Extensive Financial Fraud” And Was Forced To Pay A $400 Million Civil Penalty. “In a May report, the Securities and Exchange Commission and the Office of Federal Housing Enterprise Oversight found that Fannie Mae under Raines perpetrated ‘extensive financial fraud’ so that executives could collect big bonuses. There have been no criminal charges, but the conduct of Raines and other senior Fannie executives ‘was inconsistent with the values of responsibility, accountability, and integrity,’ the agencies said. Fannie paid a $400 million civil penalty this year to the SEC and OFHEO.” (Jay Hancock, Op-Ed, “Raines Claiming Accountability Isn’t Enough,” The [Baltimore] Sun, 12/10/06)

OBAMA DEMOCRATS BLOCKED REFORM OF FANNIE MAE AND FREDDIE MAC

Sen. John McCain Urged Action Years Ago To Reform Fannie Mae And Freddie Mac:

John McCain Urged Action More Than 2 Years Ago, Co-Sponsoring Legislation To Reform Fannie Mae And Freddie Mac Warning: “If Congress Does Not Act, American Taxpayers Will Continue To Be Exposed To The Enormous Risk That Fannie Mae And Freddie Mac Pose To The Housing Market, The Overall Financial System, And The Economy As A Whole.” McCain: “I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.” (Office Of U.S. Senator John McCain, “McCain Statement On Co-Sponsorship Of The Federal Housing Enterprise Regulatory Reform Act Of 2005,” Press Release, 5/26/06)

For Years, Obama Supporters In Congressional Oversight Committees Rep. Barney Frank (D-MA) And Sens. Chris Dodd (D-CT) And Chuck Schumer (D-NY) Blocked Efforts To Reform Fannie Mae And Freddie Mac:

“The Powerhouse Democratic Overseers Of The Banking Committees — Rep. Barney Frank, Sen. Christopher Dodd And Sen. Chuck Schumer — Protected Fannie And Freddie.” (Robert Novak, Op-Ed, “Crony Image Dogs Paulson’s Rescue Effort,” Chicago Sun-Times, 7/17/08)

Frank Blocked Multiple Attempts At Reform Spanning Back To 1992:

“[Frank's] Record Is Close To Perfect As A Stalwart Opponent Of Reforming The Two Companies, Going Back More Than A Decade. The First Concerted Push To Rein In Fan And Fred In Congress Came As Far Back As 1992, And Mr. Frank Was Right There, Standing Athwart. But Things Really Picked Up This Decade, And Barney Was There At Every Turn.” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“In 2000, Then-Rep. Richard Baker Proposed A Bill To Reform Fannie And Freddie’s Oversight. Mr. Frank Dismissed The Idea, Saying Concerns About The Two Were ‘Overblown’ And That There Was ‘No Federal Liability There Whatsoever.’” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“Two Years Later, Mr. Frank Was At It Again. ‘I Do Not Regard Fannie Mae And Freddie Mac As Problems,’ He Said In Response To Another Reform Push. And Then: ‘I Regard Them As Great Assets.’” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“Again In June 2003, The Favorite Of The Beltway Press Corps Assured The Public That ‘There Is No Federal Guarantee’ Of Fan And Fred Obligations.” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“A Month Later, Freddie Mac’s Multibillion-Dollar Accounting Scandal Broke Into The Open. But Mr. Frank Was Sanguine. ‘I Do Not Think We Are Facing Any Kind Of A Crisis,’ He Said At The Time.” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“Three Months Later He Repeated The Claim That Fannie And Freddie Posed No ‘Threat To The Treasury.’ Even Suggesting That Heresy, He Added, Could Become ‘A Self-Fulfilling Prophecy.’” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“In April 2004, Fannie Announced A Multibillion-Dollar Financial ‘Misstatement’ Of Its Own. Mr. Frank Was Back For The Defense. Fannie And Freddie Posed No Risk To Taxpayers, He Said, Adding That ‘I Think Wall Street Will Get Over It’ If The Two Collapsed.” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

Dodd Led Efforts To Block Reform Of Fannie Mae And Freddie Mac:

Obama Joined Sen. Dodd, Sen. Kerry, And Sen. Clinton - All Top Recipients Of Fannie And Freddie Contributions In Actively Opposing Reform Measures And Weakening Existing Regulations. “During this period, Sen. Richard Shelby led a small group of legislators favoring reform, including fellow Republican Sens. John Sununu, Chuck Hagel and Elizabeth Dole. Meanwhile, Dodd — who along with Democratic Sens. John Kerry, Barack Obama and Hillary Clinton were the top four recipients of Fannie and Freddie campaign contributions from 1988 to 2008 — actively opposed such measures and further weakened existing regulation.” (Al Hubbard and Noam Neusner, Op-Ed, “Where Was Sen. Dodd?” The Washington Post, 9/12/08)

Sen. Dodd Called The President’s Suggestions For Regulations “Inane” And Recommended The President “Immediately Reconsider His Ill-Advised” Proposals. “As recently as last summer, when housing prices had clearly peaked and the mortgage market had started to seize up, Dodd called on Bush to ‘immediately reconsider his ill-advised’ reform proposals. Frank, now chairman of the House Financial Services Committee, said that the president’s suggestion for a strong, independent regulator of Fannie and Freddie was ‘inane.’” (Al Hubbard and Noam Neusner, Op-Ed, “Where Was Sen. Dodd?” The Washington Post, 9/12/08)

Dodd Called On The Regulator For Fannie Mae And Freddie Mac To Lift Portfolio Caps. “Both Schumer and Christopher J. Dodd, D-Conn., the chairman of the Senate Banking, Housing and Urban Affairs Committee, have called on Fannie Mae and Freddie Mac’s regulator to lift the portfolio caps. They argue that allowing the two firms to buy more mortgages, at least temporarily, would inject much needed liquidity into the market and calm the financial markets.” (Michael R. Crittenden, “Schumer Will Seek To Lift Cap On Mortgage Portfolios Of Fannie Mae, Freddie Mac,” Congressional Quarterly Today, 8/16/07)

NOTE: Dodd Was The Top Recipient Of Contributions From Fannie Mae And Freddie Mac:

Since 1989, Dodd Has Received At Least $165,400 From Fannie Mae And Freddie Mac: $48,500 From PACs And $116,900 From Individuals, Receiving More Than Any Other Politician. (Lindsay Renick Mayer, “Fannie Mae And Freddie Mac Invest In Lawmakers,” Center For Responsive Politics’ “Capital Eye” Blog, www.opensecrets.org, 9/11/08)

Schumer Led Efforts To Block Reform Of Fannie Mae And Freddie Mac:

Schumer Called On The Regulator For Fannie Mae And Freddie Mac To Lift Portfolio Caps. “Both Schumer and Christopher J. Dodd, D-Conn., the chairman of the Senate Banking, Housing and Urban Affairs Committee, have called on Fannie Mae and Freddie Mac’s regulator to lift the portfolio caps. They argue that allowing the two firms to buy more mortgages, at least temporarily, would inject much needed liquidity into the market and calm the financial markets.” (Michael R. Crittenden, “Schumer Will Seek To Lift Cap On Mortgage Portfolios Of Fannie Mae, Freddie Mac,” Congressional Quarterly Today, 8/16/07)

Rep. Frank And Sens. Schumer And Dodd Protected Fannie Mae And Freddie Mac. “The powerhouse Democratic overseers of the banking committees — Rep. Barney Frank, Sen. Christopher Dodd and Sen. Chuck Schumer — protected Fannie and Freddie.” (Robert Novak, Op-Ed, “Crony Image Dogs Paulson’s Rescue Effort,” Chicago Sun-Times, 7/17/08)

After The Subprime Housing Crisis Began, Schumer Advocated Raising The Cap On What Fannie Mae And Freddie Mac Could Lend. “Even last September, as the subprime housing crisis began to metastasize and the market was expressing concerns about the pair, Sen. Charles Schumer (D-N.Y.), the powerful chair of the Senate banking subcommittee on housing, had the very bad (and ultimately rejected) idea of raising the cap on what Fannie and Freddie could lend by 10 percent. Since then the companies have reported losses of $11 billion, and there’s uncertainty about just how much more damage there will be from future defaults.” (Editorial, “We Can’t Say No, But We Can Regulate Them,” [New York] Newsday, 7/20/08)

Despite Reports Of Fraudulent Accounting, Schumer Opposed Creating A Strong Regulator For Fannie Mae And Freddie Mac In 2004. “Even after Freddie Mac was shown to have manipulated earnings, Congress remained deadlocked over legislation to create a stronger regulator. Opposing one such bill in 2004, Sen. Charles E. Schumer (D-N.Y.) argued that a hostile regulator could use the proposed powers to choke the companies.” (David S. Hilzenrath, “Fannie, Freddie Deflected Risk Warnings,” The Washington Post, 7/14/08)

"A man can never have too much red wine, too many books, or too much ammunition"...Rudyard Kipling

[rushmc 18]

Quote

Quote

Head in the sand sir, is what you are doing if you say Bush is to blame.

George W. Bush, September 2, 2004,

Quote

Thanks to our policies, home ownership in America is at an all- time high. Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."

George W. Bush, February 18, 2008

Quote

I think this economy is down because we built too many houses and the economy's adjusting.

Blues,
Dave

This started in 1997 and that is easy to verify. A few years back McCain and the Bush Admin requested that congress change the oversite of Fannie and Freddie and predicted exactly what has happened today. This too is easy to verify. You should really check it out
Look at Obama economic advisers roles and the money Schumer, Obama and others recieved from Freddie and Fannie. (and not their employees)

Gotta be uncomforable having all that sand in your ears

And now that I read the posts above mine it would seem the info has been provided for you.

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[livendive 8]

Quote

Quote

Quote

Head in the sand sir, is what you are doing if you say Bush is to blame.

George W. Bush, September 2, 2004,

Quote

Thanks to our policies, home ownership in America is at an all- time high. Tonight we set a new goal: 7 million more affordable homes in the next 10 years, so more American families will be able to open the door and say, "Welcome to my home."

George W. Bush, February 18, 2008

Quote

I think this economy is down because we built too many houses and the economy's adjusting.

Blues,
Dave

This started in 1997 and that is easy to verify. A few years back McCain and the Bush Admin requested that congress change the oversite of Fannie and Freddie and predicted exactly what has happened today. This too is easy to verify. You should really check it out
Look at Obama economic advisers roles and the money Schumer, Obama and others recieved from Freddie and Fannie. (and not their employees)

Gotta be uncomforable having all that sand in your ears

And now that I read the posts above mine it would seem the info has been provided for you.

Hey, I didn't blame anyone, I just provided two quotes from Bush. In one, he claimed credit for the number of homes, in the next, he placed blame on the number of homes.

Blues,
Dave

"I AM A PROFESSIONAL EXTREME ATHLETE!"
(drink Mountain Dew)

[billvon 2,421]

>. A few years back McCain and the Bush Admin requested that congress
>change the oversite of Fannie and Freddie and predicted exactly what has
>happened today. This too is easy to verify.

It is indeed. McCain, a year ago:

"But so, in this whole new derivative stuff, and SIBs and all of this kind of new ways of packaging mortgages together and all that is something that frankly I don’t know a lot about. . .

But I don’t know of hardly anybody, with the exception of a handful, that said ‘wait a minute, this thing is getting completely out of hand and is overheating.' So, I’d like to tell you that I did anticipate it, but I have to give you straight talk, I did not."

Looks like McCain is calling you a liar.

[rushmc 18]

Quote

>. A few years back McCain and the Bush Admin requested that congress
>change the oversite of Fannie and Freddie and predicted exactly what has
>happened today. This too is easy to verify.

It is indeed. McCain, a year ago:

"But so, in this whole new derivative stuff, and SIBs and all of this kind of new ways of packaging mortgages together and all that is something that frankly I don’t know a lot about. . .

But I don’t know of hardly anybody, with the exception of a handful, that said ‘wait a minute, this thing is getting completely out of hand and is overheating.' So, I’d like to tell you that I did anticipate it, but I have to give you straight talk, I did not."

Looks like McCain is calling you a liar.

“If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.” –John McCain, May 26, 2005


I think not

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[billvon 2,421]

>I think not

You're right! He's calling John McCain a liar.

[rushmc 18]

Quote

>I think not

You're right! He's calling John McCain a liar.

Ok, when and what congress pushed to put into place the rules and oversite that caused this mess?

Who worked hard to make sure their money supply from these two "companies" was not interupted?


Who is using those that gained the most from these failed comanies as his head economic advisers.

I am not exactly sure what your snide remark means but this history has not had time to be changed yet by those getting caught and that gained the most?

Only a revision of history will put this on Bush, Clinton and the Dems in control have to wear this one, but they will not because the media does not want them too

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[jenfly00 0]

Quote

I think not

How true, how true.

-----------------------
"O brave new world that has such people in it".