Posted on 09/25/2008 2:34:06 AM PDT by Renkluaf
Countrywide Financial Corp., the biggest U.S. mortgage lender, made large, previously undisclosed home loans to two additional executives of Fannie Mae, the government-chartered firm at the center of the U.S. credit crisis.
One of Countrywide's previously undisclosed customers at Fannie was Jamie Gorelick, an influential Democratic Party figure whose $960,000 mortgage refinancing in 2003 was handled through a program reserved for influential figures and friends of Countrywide's chief executive at the time, Angelo Mozilo. Ms. Gorelick was Fannie Mae's vice chairman at the time.
Another Countrywide client was recently ousted Fannie Mae Chief Executive Daniel Mudd, though it isn't clear whether he received special treatment on two $3 million mortgage refinancings he made when he was the company's chief operating officer.
In an interview, Ms. Gorelick said she had no knowledge of receiving special treatment. A financial adviser to Mr. Mudd said he received interest rates in line with the prevailing market.
(Excerpt) Read more at online.wsj.com ...
The average market rate for loans of the type obtained by Ms. Gorelick and Mr. Raines fluctuated around 6% at that time, according to data from HSH Associates Inc., potentially saving the two borrowers thousands of dollars over the life of the loans.
Looks like the FBI’s going to have a full plate.
Ms. Gorelick is part of a small group of Democratic Party insiders who received “Friends of Angelo” loans. Another previously undisclosed recipient was lobbyist Charles Campion of the firm Dewey Square, which represented Fannie Mae at the time of his June 2003 loan, handled by Mr. Feinberg. Later, in 2006, Mr. Campion became a lobbyist for Countrywide.
Mr. Campion is a longtime friend of former Fannie Chief Executive Jim Johnson, who received more than $10 million in preferential loans from Countrywide. The two men managed Walter Mondale’s 1984 presidential campaign.
******
Authors Glenn R. Simpson and James R. Hagerty noted that customers who got their Countrywide loans through being “friends” of Countrywide chief executive Angelo Mozilo included Raines and Franklin, “two former CEO’s of Fannie Mae, the biggest buyer of Countrywide’s mortgages.”
Her (Jamie Gorelick) fingerprints are all over the Fannie Mae-Freddie Mac mess, which is to say the mess that is central in the entire mortgage-housing crisis. Without so much as one scintilla of real estate or finance experience, she was appointed as Vice Chairman of Fannie Mae in 1997 and served in that role through 2003, which is when most of the systemic cancers that came home to roost today happened. She was instrumental in covering up problems with Fannie Mae while employed there and took multiple millions in bonuses as she helped construct this house of cards.
One example of falsified financial transactions that helped the company meet earnings targets for 1998, a “manipulation” that triggered multimillion-dollar bonuses for top executives. On March 25, 2002, Business Week Gorelick is quoted as saying, “We believe we are managed safely. Fannie Mae is among the handful of top-quality institutions.” One year later, Government Regulators “accused Fannie Mae of improper accounting to the tune of $9 billion in unrecorded losses”.
“Mr. Raines received a rate of 5.125% for the first 10 years on a $982,253 refinancing, Washington, D.C., real-estate records show.
A little over a month later, Ms. Gorelick received a rate of 5% for the first 10 years on a $960,149 refinancing.”
Um, do both of these have a 10 yr ARM on property that has lost value in this mess? It would be sweet revenge if they couldn’t refinance when the mortgages adjust.
“The key to Fannie Mae’s survival was the patronage operation it ran. As Wall Street Journal reporter James R. Hagerty wrote two summers ago, “For years, high-level jobs at Fannie Mae were lucrative prizes for lawyers, bankers and political operatives waiting for their next U.S. government post.” Now that the jig is up, let’s meet some of the bipartisan warriors who fought for Fannie Mae’s right to plunder.
At the top of the list we must place Franklin D. Raines, chairman and chief executive officer of Fannie Mae from 1998 to 2004. Raines, who served as director of the Office of Management and Budget under President Clinton, had previously worked at Fannie Mae as vice chairman. Before that, he worked on the Clinton transition team following the 1992 election. Before that, he was a general partner at Lazard Freres & Co. Raines, as the Wall Street Journal reported, was forced to leave Fannie Mae in 2004, when regulators discovered it had broken accounting rules “in an effort to conceal fluctuations in profit and hadn’t maintained adequate risk controls.” The New York Times reported two year ago that regulators “have said that of the $90 million paid to Mr. Raines from 1998 to 2003 at least $52 million—more than half—was tied to bonus targets that were reached by manipulating accounting.”
Next up is Jamie S. Gorelick, whose official résumé describes her as “one of the longest serving Deputy Attorneys General of the United States,” a position she held during the Clinton administration. Although Gorelick had no background in finance, she joined Fannie Mae in 1997 as vice chair and departed in 2003. For her trouble, Gorelick collected a staggering $26.4 million in total compensation, including bonuses.”
http://www.slate.com/id/2200160/
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There are many, many more. All of these former high ranking government officials who worked for a particular Democrat who served two terms between 1992 and 2000, and who received VIP treatment were referred to in Countrywide company emails and documents as “FOA”s, or Friends of Angelo – Countrywide CEO Angelo Mozilo.
It appears, again according to Portfolio, that Angelo had many, many friends in very high places. “Henry Cisneros, who served as secretary of Housing and Urban Development in the Clinton administration; former White House staffer Paul Begala, now a commentator on CNN; and Postmaster General John Potter. Countrywide also offered special discounts to Congressional staffers involved in housing issues.”
Angelo’s tentacles were far reaching: Countrywide spent over $1.5 lobbying Capitol Hill in 2005. Here’s an interesting anecdote. “Jimmie Williams, a Countrywide lobbyist in Washington, was remarkably candid in emails about the purpose of V.I.P. loans. In November 2002, for instance, Williams urged Feinberg’s boss, Doug Perry, to give “specialized handling” to an application from a staff lawyer for the House subcommittee that monitors the Department of Housing and Urban Development. HUD regulates real estate settlements and closing costs and runs the Federal Housing Administration, the agency that guarantees mortgages. Williams pointed out that Clinton Jones III, senior counsel of the House Financial Services Subcommittee on Housing and Community Opportunity, was “also an adviser to ranking Republican members of Congress responsible for legislation of interest to the financial services industry and of importance to Countrywide.” Jones borrowed $101,800. So what. Who is this Clinton Jones, anyway?
Clinton Jones III is now vice president for industry relations at Fannie Mae. The lobbyist, Williams, is currently state director for federal residential-mortgage bundler Freddie Mac – you know, the guys who bundles up all this bad debt and sells it to firms on Wall Street. Also worthy of note is the fact that depending on the year, Fannie Mae bought anywhere from 10 to 30 percent of its loans from Countrywide, which they would bundle with other bad loans and then sell again. Are you holding your nose yet? Wait – there’s still more!
According to Politico, Nancy Pelosi had this to say “Eight years of weakened regulation of our nation’s financial system — including a failure to regulate risky, and often predatory, lending practices — by the Bush administration and Republicans in Congress have led us to this point, and could further erode our nation’s economic health.”
PARTIAL LIST OF TERRORIST ACTIVITIES IGNORED BY McCARTHY, GORELICK, CLARKE and CLINTON,
WHO ARE AMERICAN ENABLERS OF TERRORISM WHICH MURDERS INNOCENT AMERICANS
1993 Attempted Assassination of Pres. Bush Sr., April 14,1993
1993 First World Trade Center bombing, February 26th, 7 Killed, Hundreds injured, Billions
1995 Attack on US Diplomats in Pakistan, Mar 8,1995
1996 Khobar Towers attack
1998 U.S. Embassy Bombing in Peru, Jan 15, 1998
1998 U.S. Kenya Embassy blown up, 100's murdered
1998 U.S. Tanzania Embassy blown up, 100's murdered
1999 Plot to blow up Space Needle (thwarted)
2000 USS Cole attacked, many U.S. Navy sailors murdered
http://www.freerepublic.com/focus/f-news/1117579/posts
GORELICK GATE - various FR links
GUILTY
It seems these people have some kind of protection from the devil. They are rich from stealing and we have to suffer. I can’t understand how this happens and why?
Its the Corruption Stupid!
Pray for W, McCuda and Our Troops
***She erected the “wall” to prevent the CIA from informing the FBI that Clinton was receiving large campaign contributions from the Chinese. Unfortunately, it also prevented them from sharing any information about the 9/11 terrorists.***
I hadn’t thought of that angle.
It appears she's in a hurry... she keeps trying to bring hell to earth.
This is why the RATS don’t want McCain to come to DC. They know this issue is front and center and the RATS will be exposed for everything on this one.
I hope the RNC and McCain campaign expose them the rest of the way.
***TODAY’S Factoid:
Hostile, biased reporter David Gregory’s wife was
the Executive Vice President-General Counsel of Fannie Mae.***
Hostile is right. Gregory has been one of the most obnoxious reporters whenever there’s been a press gaggle or a press conference.
Jaime S(candal) Gorelick
(No link)
JUSTICE’S NO. 2 STAYS ORGANIZED ON JOB, AT HOME
Pittsburgh Post-Gazette (PA) - December 26, 1996
Author: JACK TORRY, POST-GAZETTE WASHINGTON BUREAU
EXCERPT
As the Pentagon’s general counsel in 1993, she drafted the controversial ``don’t ask, don’t tell’’ policy that allowed gays to serve in the military but pleased neither gay rights advocates nor their foes. And some women’s organizations privately fume that Gorelick does not aggressively promote a feminist agenda.
Gorelick was advising Zoe E. Baird to prepare for her Senate confirmation hearings in 1993, after Clinton nominated Baird as attorney general. But Baird had to withdraw her name after a firestorm arose over her employment of an illegal-alien nanny for whom she had failed to pay Social Security taxes. Gorelick vastly underestimated the public outrage that revelation would provoke.
And Gorelick supports Reno’s recent decision, unpopular with many Republicans, not to name an independent counsel to investigate questions about foreign contributions to the Democratic National Committee in this year’s campaign.
Just this fall, Clinton passed her over for promotion to either the CIA helm or to head another Cabinet agency, prompting one female GOP attorney to call Gorelick ``the woman who’s always a bridesmaid and never a bride.’’
//
(No link)
Prosecutors are warned of fallout from FBI lab scandal
Houston Chronicle - February 14, 1997
Author: MICHAEL J. SNIFFEN, Associated Press
WASHINGTON - The Justice Department has advised 50 prosecutors, half in state and local governments, that FBI lab problems could affect their cases. And that figure might grow, Deputy Attorney General Jamie Gorelick said Thursday
“In each of the cases . . . there could be an issue raised by defense counsel,” Gorelick said at a news conference. “We’re just going to have to see how each court reacts to each separate fact pattern that’s presented” before anyone can say whether lab errors will harm the prosecutions. But a lawyer for the whistle-blower who first made allegations about lab errors said Gorelick was minimizing the problem.
(snip)
//
Investigator or obstructionist? - Gorelick laid foundation of intelligence failures
Washington Times, The (DC) - May 19, 2004
Author: David N. Bossie, SPECIAL TO THE WASHINGTON TIMES
EXCERPT
Documents just released by Justice trace the building of the wall , starting with Ms. Gorelick instructions to Mary Jo White, then prosecuting the blind sheik for the 1993 World Trade Center bombing, and Ramsey Yousef for terrorist activities, to separate counterintelligence and criminal investigations.
Ms. Gorelick ‘s direction to Ms. White created barriers “which go beyond what is legally required, will prevent any risk of creating an unwarranted appearance that the Foreign Intelligence Surveillance Act is being used to avoid procedural safeguards . . .” This was the very foundation of the wall .
Over Ms. White’s complaints, this became the new Justice Department policy. Documents show Ms. Gorelick directly reviewed Ms. White’s suggestions, some were changed, some rejected and some included. Ms. Gorelick then sent the policy with a hand-written note indicating her approval to the attorney general. The attorney general formalized Ms. Gorelick ‘s new policy in July 1995.
//
http://www.nytimes.com/2005/02/04/business/04boeing.html?_r=1&oref=slogin
Boeing Hires a Legal Team to Handle Scandal Cases
By TIM WEINER
Published: February 4, 2005
Abstract: Boeing Co, facing legal problems at Pentagon and Justice Department, hires Jamie S Gorelick and Richard Cullen, politically experienced outside lawyers; company is under fire for unethical handling of Pentagon contracts and trade secrets obtained from Lockheed Martin; cases reviewed (M)
EXCERPT
One of Boeing’s biggest critics in Washington, Senator John McCain, Republican of Arizona, is expected to intensify his war of words against the company after Congress reconvenes. Mr. McCain, a member of the Senate Armed Services Committee, helped kill a $23 billion Air Force plan to lease Boeing aircraft tankers after Ms. Druyun admitted she had fixed a higher price on the contract as a gift to Boeing.
//
(No link)
Duke bolsters legal team in fighting lawsuit - Ex-deputy attorney general to help against lacrosse players’ case
Herald-Sun, The (Durham, NC) - February 6, 2008
Author: Ray Gronberg
DURHAM — Duke University has added a former deputy attorney general of the United States to the legal team that will defend it against a federal civil-rights lawsuit filed by three members of the 2005-06 men’s lacrosse team.
Court papers filed this week indicate that Washington, D.C., attorney Jamie Gorelick will assist two Greensboro litigators in representing the school. They’re also the attorneys of record for the Duke University Police Department, Board of Trustees Chairman Robert Steel, school President Richard Brodhead and numerous other university officials.
(snip)
The FBI should have dug that up where are they? This type of special interest that we as taxpayers suffer for needs to be known widely as Americans pay $4 for gas if available, consider who to vote for and get hit with this bailout.
As McCain said name names and make them famous. If they happen to be on Obama’s staff all the better, but expose them all.
Even though she is using the patented Hitlery Clinton "My mind is Jello" defense?
GORELICK NEEDS TO BE INVESTIGATED ON SO MANY LEVELS IT MAKES ME SICK!!!!!!!!!!!!!
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