Posted on 09/21/2008 7:55:59 AM PDT by dirtboy
In early June 2008, Americans learned of a VIP loan program provided to influential politicians by Countrywide Mortgage at the direction of its chairman Angelo Mozilo – and that one of the so-called ‘Friends of Angelo” was none other than Jim Johnson, a former CEO at Fannie Mae who had just been tapped to head Barack Obama’s vice presidential vetting committee.
Countrywide Friends Got Good Loans
Countrywide Financial Corp. makes mortgage loans through a vast network of offices, brokers and call centers. But a few customers have gotten their loans a special way: through Countrywide Chief Executive Angelo Mozilo.
These borrowers, known internally as "friends of Angelo" or FoA, include two former CEOs of Fannie Mae, the biggest buyer of Countrywide's mortgages, say people familiar with the matter.
One was James Johnson, a longtime Democratic Party power and an adviser to Sen. Barack Obama's campaign, who this past week was named to a panel that is vetting running-mate possibilities for the presumed nominee. Another was Franklin Raines, a onetime Clinton administration budget director, who left Fannie Mae amid an accounting scandal in 2004.
Initially, Obama did what he did best, namely, obfuscate: Obama Defends Jim Johnson's Role as VP Selecter
At a press conference today, Sen. Barack Obama said he will not ask Jim Johnson to step down from his VP selection committee despite his ties to Countrywide Mortgage. Obama said he will not vet the vetters.
Obama: "These are not folks who are working for me."
But that only lasted one day: JIM JOHNSON STEPS DOWN
Jim Johnson, who had been leading Barack Obama's vice presidential search committee, has stepped down from the campaign.
"Jim did not want to distract in any way from the very important task of gathering information about my vice presidential nominee, so he has made a decision to step aside that I accept," Obama said in a statement. "We have a very good selection process underway, and I am confident that it will produce a number of highly qualified candidates for me to choose from in the weeks ahead. I remain grateful to Jim for his service and his efforts in this process."
Under the bus you go, Jim. Say hi to Reverend Wright for us.
So apparently Jim Johnson’s sweetheart Countrywide mortgages were grounds to disqualify him from vetting Obama’s veep candidates. But receiving similar favorable Countrywide mortgages were not sufficient from preventing another Friend of Angelo from drafting legislation that stood to benefit the new owner of Countrywide, Bank of America, at the expense of the American taxpayer. Namely, one Senator Chris Dodd, D-CT. Chair of the Senate Banking Committee. And at the time, busy crafting bailout legislation for the mortgage industry – legislation of considerable interest to Bank of America.
The story was initially broken by Conde-Nast Portfolio (link only) and picked up by other media outlets as well.
Two Senators Appear to be "Friends of Countrywide"
The Senator, a Democrat from Connecticut and Chairman of the Senate Banking Committee which regulates mortgage lending, was named in an article by Julie Hirschfeld Davis of the Associated Press and earlier by Conde Nast Portfolio magazine, as one of two senators - the other being Senator Kent Conrad (D - ND) - as having received preferential treatment from Countrywide CEO Angelo Mozilo in obtaining mortgage loans. Dodd had earlier this year called Countrywide's lending practices "abusive."
So, what was Dodd’s reaction to this revelation of preferential treatment? Why, to pull out the Dem scandal management playbook. First, he denied that he got preferential treatment. When it was revealed that he knew he was getting a special deal, he claimed he thought it was for his being a longtime customer. When a former Countrywide loan officer said that Mozilo demanded of his employees that they inform the recipients of VIP loans of their special treatment, and that Dodd had received FOUR sweetheart mortgages instead of just the two initially reported by Conde Nast (saving him a total of $70,000), Dodd just simply clammed up and stonewalled.
Some called on Dodd to halt his work on crafting the mortgage bailout bill, given the allegations. But Dodd refused. After all, there was vital legislation to draft for his new patron, Bank of America.:
WASHINGTON (Map, News) - "We call it the 'Bank of America bill on steroids.'" A House staffer told me that, demanding anonymity, but speaking on behalf of aides to GOP members of the House Financial Services Committee.
He was talking about the bill whose Senate version has been brought to the floor this week by Sen. Chris Dodd, D-CN, and Sen. Richard Shelby, R-AL. Dodd-Shelby would let mortgage lenders off the hook for bad loans, shifting the burden ultimately to taxpayers. Dodd has received approximately $70,000 in campaign contributions from Bank of America in the last year-and-a-half.
Dodd-Shelby hit the Senate floor this week amid controversy over sweetheart loan deals Dodd and other powerful politicians received from Countrywide Financial, the lender with the most exposure to subprime mortgages at risk of default.
Some journalists and Republican lawmakers are asking if Countrywide bought a bailout bill with its VIP loans to Dodd, who is chairman of the Senate Banking Committee
And it appeared that Bank of America was pleased with what their money bought:
National Review Online has obtained an internal Bank of America "discussion document" (pdf here) on the subject of the FHA Housing Stabilization and Homeownership Retention Act of 2008, a.k.a. the Dodd-Shelby mortgage-lender bailout bill.
Yesterday, Tim Carney reported that the prevailing sentiment on Capitol Hill is that the Dodd-Shelby bill "is exactly what Bank of America and Countrywide wanted." BofA is in the process of acquiring Countrywide. Countrywide is currently embroiled in a scandal over its V.I.P. program, under which several powerful politicians, including Sen. Chris Dodd, got preferential loan rates.
This discussion document (dated March 11, 2008) would appear to support the contention that BofA essentially wrote the bailout section of the bill. Almost all of BofA's preferences are mirrored in the Dodd-Shelby legislation. The BofA document even offers PR tips, such as "We believe that any intervention by the federal government will be acceptable only if it is not perceived as a bail-out of the bond market."
And the estimated cost to taxpayers for that bailout of BofA and other mortgage lenders? Estimates range from $300 to $500 billion. So for $70,000 in campaign cash and $70,000 in mortgage discounts … well, you do your own math as to what that costs each taxpayer.
And the sorriest part of this affair? After all these revelations, Dodd was still on Obama’s short list of veep candidates. Which goes to show just what Obama thinks of the Politics of Personal Enrichment – that it is business as usual for the Democratic Party. Change? Try chump change. As in, Obama and Dodd thinks we are the chumps because they stick us with the costs. There’s only one way to prove them wrong. Make their corruption cost them their jobs.
I can't do this alone - there is just too much Dem corruption for one dirtboy to document. Anyone who wants to run with the topics I and others have mentioned, go for it.
Dodd should be forced to sell his real estate at a loss like everyone else.
Corrupt congress. This is but one of the 89% of the reasons why congress is a flop. Personal enrichment.
Dodd should resign. Shameful. Oops. Democrats have no shame.
impeach him!!
I have not faith that anyone in the federal government law enforcement agencies is going to investigate some of this hanky panky-I’d like to see a state attorney general do it.
FANNIE-GATE!
This should be the theme of McCain's message on Washington reform. This is a trillion dollar problem.
Politics of Personal Enrichment ping
Excellent article. You should work on publishing it on other sites too! I would volunteer for one, but I am a horrible writer. Good at research though...so if anyone needs that kind of help, let me know.
Remember the good old days when no one in Congress stayed in Washington any longer than needed because they had a farm/business/family that needed tending to?
Washington insider/beltway entrenchment will be a large contributing factor to the ultimate downfall of our country.
The current financial “crisis” is a perfect example of this.
Better yet, indict him on tax evasion. That sweetheart deal is imputed income.
It worked for Eliot Ness.
Calling Justice Department. Calling Justice Department.
“We’re sorry, but the number you dialed cannot be completed.”
BTTT
These “personal enrichment” threads would be an ideal place to add Howie Carr’s columns.
The Massachusetts kleptocracy is absolutely unbelievable, even by Democrat measures.
The Bush Justice Department
Many conservatives burrowed within the Department of Justice have long complained that Gonzales (therefore, Bush) has permitted career government employees and hold-overs from Democratic Administrations to remain in perches of power and thereby water down conservative directives from the top. As one conservative and Federalist Society member in the Justice Department told me: “This is definitely not Ronald Reagan’s Justice Department, I assure you. You have holdovers from Clinton calling the shots in a lot of places here.”
- - John Gizzi from: Should Gonzales Go?
Human Events | March 20, 2007 |
In another thread we see that Pelosi’s son works for Countrywide while taking bribes from InfoUSA whatever that is.
Its the Corruption Stupid.
Pray for W, Palin and Our Troops
Buuuump!
That brought an image to my head:
(1,000,000,000,000.0)
McCain has said that he will name names and make people famous regarding corruption during this campaign.
Frank Luntz was on Fox this morning saying how ANGRY the American public is with congress,and that they demand accountability.
He is dead on!
C’mon John,name names;
Bill Clinton
Andrew Cuomo
Jamie Gorelick
Alan Greenspan
Jim Johnson
Franklin Raines
Chris Dodd
Barney Frank
Also explain that only George Bush,in 2003-2004,and John McCain,in 2005-2006,were the only ones trying to correct this fiasco. And how congress,through threatened filibuster,blocked these efforts.
The American public would respond very favorably to such “straight talk”.
.....C’mon John,name names.....
Recall if you will the drunk driving charge against W on friday before the election, timed to make the weekend news but not enough time to mount a full rebuttal.
Wednesday, Thursday and Friday before the election the names should come dribbling out. A massive attack across a wide front to confuse and disrupt the media and be too large to mount numerous rebuttals..... that’s the ticket
That would be perfect!
The Drive-bys wouldn’t have time to drive by.
We have to get out the word - this wasn’t just about bad legislation or bad ideas. The Dems directly enriched themselves, their cronies and their relatives - and blocked efforts to halt the corruption, right to the edge of financial meltdown.
FreeRepublic blocks articles from this site. It seems to have an interesting perspective IMO.
Barack’s Wall Street Problem is Now America’s
http://noquarterusa.net/blog/2008/09/21/baracks-wall-street-problem-is-now-americas/#more-4939
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