Posted on 11/10/2008 1:28:59 AM PST by Liz
New Obama Chief of Staff, Others on Board, Missed "Red Flags" of Alleged Fraud Scheme
President-elect Obama's newly-appointed chief of staff, Rahm Emanuel, served on the board of Freddie Mac at a time when scandal was brewing at the troubled agency.....the board failed to spot "red flags," according to government reports reviewed by ABCNews.com. An SEC complaint claims Freddie Mac misreported profits by billions of dollars in order to deceive investors circa 2000-02.
(Excerpt) Read more at abcnews.go.com ...
BACKSTORY Fannie and Freddie’s PAC, employees and lobbyists have donated $4.8 million to current members of Congress since 1989, according to the Center for Responsive Politics. In Obama’s short time in the Senate, $125,000 has poured into his campaign coffers. That’s second only to Senate Banking Chairman Chris Dodd’s $165,000 longtime total. In the last 10 years, Freddie Mac spent almost $95 million for lobbyists; Fannie Mae spent more than $79 million on lobbying. In 2006, a record $3.8 million FEC fine was levied on Freddie Mac for illegal political fundraising for a member of the House committee overseeing the corporation. Democrats argue that slide into the abyss began in 1999, when much of the banking world was deregulated under the leadership of Gramm, leading to the financial derivatives that led to the current credit crisis.
“The conservative philosophy of deregulation that was dominant for far too long allowed private businesses to make terrible mistakes,” said Rep. Barney Frank, who became chairman of the Financial Services Committee in 2006. But Republicans say President Clinton signed the legislation (which passed the Senate 98-0), and Clinton’s then Treasury secretary, Robert Rubin--- now a top Obama economic adviser -----approved.
Cong Barney Frank protected the mortgage giants and Frank pushed to back risky low-income housing for years. Frank had a conflict of interest because Frank’s live-on partner, Herb Moses, worked at Fannie Mae, helping create affordable housing and home improvement lending programs. The couple broke up in 1988.
Federal regulator OFHEO released a damning report on accounting irregularities at mortgage finance giant Fannie Mae. One critical finding was that in 1998, Fannie misstated expenses in order to meet earnings targets that triggered huge executive bonuses.
1998 Salary and Bonus of Senior Fannie Mae Executives
Officer Title---Salary---AIP Award/Bonus
James A. Johnson Chairman and CEO--$966,000--$1,932,000
Franklin D. Raines Chairman and CEO Designate-- $526,154-- $1,109,589
Lawrence M. Small President and COO-- $783,839-- $1,108,259
Jamie Gorelick Vice-Chairman-- $567,000-- $779,625
J. Timothy Howard EVP and CFO-- $395,000-- $493,750
Robert J. Levin EVP, Housing and Comm. Develop.-- $395,000-- $493,750
SOURCE Office of Federal Housing Enterprise Oversight, September 22, 2004 (FR Posted 09/23/2004 by Dems_R_Losers)
RAINES' FAREWELL TOTALS $26M PLUS---MAKES WALL STREET LOOK LIKE PIKERS Franklin Raines was ousted for cooking Fannie Mae’s books....but he walked away with a $26 million parachute — not counting his monthly pension of $116,300 for life. Raines owns options giving him $5.8 million in net profit after redeeming them, plus another $8.7 million in deferred compensation......has already collected $4.87 million in special performance shares this year and also keeps $5 million of paid-up life insurance. He and his spouse get free medical and dental benefits for life, worth over $1 million. Last year, Raines earned $20 million in salary, bonuses and stock awards......told the board that he's entitled to get paychecks until next June 22 giving him another $600,000, which triggers a $2,000 monthly raise in his lifetime pension......also says he's entitled to disputed options with a gross value of about $5.6 million. Fannie Mae will match Raine's charitable contributions by $10,000 a year. Raines' stupidity AND cupidity precipitated the mortgage crisis but he will suck off the labors of taxpayers for years to come. http://www.nypost.com/business/37312.htm
...and Obama was a large recipient of contributions from same.
I love the way the left shouts “hypocrisy” at every opportunity. They have an exquisitely developed sense of “hypocrisy.” But only when they see it (or imagine that they see it) on the right.
Somehow the hypocrisy detector breaks down every time it’s aimed at them. Maybe it fails due to the overload.
Yes. It’s payback time.
saving
By naming the tainted Emanuel, Obama is telegraphing, "Forget everything I said as a candidate."
FRANKLIN RAINES? Raines worked for the Obama Campaign as Chief Economic Advisor
TIM HOWARD? Howard was also a Chief Economic Advisor to Obama
JIM JOHNSON? Johnson hired as a Senior Obama Finance Advisor and was selected to run Obama's Vice Presidential Search Committee
JAMIE GORELICK Obama advisor being considered for Attorney General
PS In case you forgot----Obama's all about change.
ABC news reported this? Is this their yearly bone they throw to conservatives to appear fair and balanced?
Yeah, but they already have the follow-up story written---how Emanuel is pure as the driven snow........
It's nothing but those vicious Repubs ganging up on a disabled, short 100-pound weakling, with only nine fingers (sniffle).
I understand a lot of folks supportive of Obama are unhappy about the choice of Rahm. The media machine may be coming after Rahm to try to force Obama to “reconsider”!
I see ABC is putting lipstick on the pigs chosen by O to enact CHANGE.
Somehow I don’t think the media will come after him (Rahm or Obama). They are too “tingly” for him.
See this link for some hilarious comments on the media lovefest:
http://www.freerepublic.com/focus/news/2128585/posts?page=5
The media is just bragging and taunting like the playground bully now.
What change?
He was talking about “loose change” in our pockets-—all we’ll have left after he gets finished destroying the economy.
..and Jamie QuickBucks later pocketed $26 million, and Obama wants to make her Attorney General.
Unfortunately, there isn't a reporter in America with an IQ above 80, so the obvious conflict of interest will go right over the heads of Couric , Gibson and Anderson Cooper (we won't comment on NBC: aka Numbnuts Broadcasting Corp).
----Plus any criticism would interrupt worship of their Holy One.
Maybe we can take up a collectionn to get them monogrammed media prayer rugs?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.