Posted on 09/06/2009 3:39:51 AM PDT by TigerLikesRooster
Fair Game They Left Fannie Mae, but We Got the Legal Bills
By GRETCHEN MORGENSON
PRECISELY one year ago, we lucky taxpayers took over Fannie Mae and Freddie Mac, the mortgage finance giants that contributed mightily to the wild and crazy home-loan-boom-turned-bust. In that rescue operation, the Treasury agreed to pony up as much as $200 billion to keep Fannie in the black, coughing up cash whenever its liabilities exceed its assets. According to the company’s most recent quarterly financial statement, the Treasury will, by Sept. 30, have handed over $45 billion to shore up the company’s net worth.
It is still unclear what the ultimate cost of this bailout will be. But thanks to inquiries by Representative Alan Grayson, a Florida Democrat, we do know of another, simply outrageous cost. As a result of the Fannie takeover, taxpayers are paying millions of dollars in legal defense bills for three top former executives, including Franklin D. Raines, who left the company in late 2004 under accusations of accounting improprieties. From Sept. 6, 2008, to July 21, these legal payments totaled $6.3 million.
With all the turmoil of the financial crisis, you may have forgotten about the book-cooking that went on at Fannie Mae. Government inquiries found that between 1998 and 2004, senior executives at Fannie manipulated its results to hit earnings targets and generate $115 million in bonus compensation. Fannie had to restate its financial results by $6.3 billion.
(Excerpt) Read more at nytimes.com ...
Ping!
One cannot help but notice that the crusader that is pointing out this rip-off, is a Democrat. There seems to be no mention of the fact that the guilty parties are Democrats or that the people who first blew the whistle were not. The story focuses on the relatively small legal bills, while giving brief lip-service to the larger crimes.
This is one small example of Democrat damage-control. Of course, they do not have much to worry about since the Republicans will do relatively nothing to take advantage of Democrat artrocities.
Could it be possible that the NYT could be use as an outlet for Democrat disinformation?
AND THE FINGER. . . .
How many billions went to NBC’s David Gregory’s wife (lawyer)?
Does anyone recall who was in charge of Fannie Mae when the HVCC (Home Valuation Code of Conduct) was settled with NY Attorney General Cuomo?
Wasn’t that a product of one of the political appointees?
I guess the 5.5 million loans worked out between Raine’s and Mel Martinez, for Bush, don’t count for a cool aide drinking republican.
I know you are not calling me a kool-aid drinking Republican. But on the very remote possibility that you are, you have missed a lot of posts in the last nine years. Fortunately, I have not caught the O’Reilly disease, which causes someone, everytime they mention a Dem wrongdoing, to be required to also point out a GOP wrongdoing. You are right to note that anyone who sees the Republicans as innocent, has been drinking some very strong kool-aid.
The fact that there are many fools here that think the republicans are one hundred percent innocent of this financial BS, is sick. And they bring it up day after day after day.
It was all for the honorable cause of social justice, so it does not really matter./s/
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