Posted on 07/20/2010 12:06:58 PM PDT by Sub-Driver
Countrywide probe snares Fannie, Freddie execs By: Jake Sherman July 20, 2010 02:34 PM EDT
Employees at Fannie Mae and Freddie Mac — including top executives — received more than 170 cut rate loans from Countrywide Financial, according to a congressional probe, the latest accusation that the lender tried to curry influence with people in power.
The investigation revealed that Fannie Mae employees — including an assistant to the CEO, a government relations lobbyist and a vice president for sales — received 153 favorable loans, while 20 VIP loans were issued to employees at Freddie Mac. Countrywide Financial collapsed in the 2008 housing meltdown and was swallowed by Bank of America, but its connections to powerful political figures continue to reverberate in Washington.
These are the same type of special loans that created an ethics controversy for Sens. Kent Conrad (D-N.D.) and Chris Dodd (D-Conn.). The senators were accused of getting VIP mortgages because of their political positions — but were later cleared by the Senate Ethics Committee.
The investigation has also uncovered what Republicans believe is evidence that Countrywide was offering loans to influential people at a loss to the company. An e-mail, obtained by POLITICO, shows Countrywide employees discussing a refinance of former Fannie Mae Chief Operating Officer Daniel Mudd’s loan, acknowledging the sensitivity and potential for financial loss.
“Make sure the branch, and RVP, understand the sensitivity of this deal,” the e-mail to a former Countrywide Vice President Daniel Rector reads. “We are already taking a loss, it would be horrible to add a service complaint on top and lose any benefit we generate.”
Any special rate loans may violate Fannie Mae’s code of conduct, which prohibit discounted loans, according to a letter that summarized the investigation’s results.
(Excerpt) Read more at dyn.politico.com ...
It's even more amazing that the Pubbies are so inept that they can't / won't capitalize on the problem's and hammer the RAT's for keeping them operating as business as usual.
Loans made at a loss are clearly bribes. It was also a fraud on Countrywide’s shareholders.
Do you really think this DOJ will follow through? Holder will drop this like the Black Panther litigation. Can’t be jailing the Rats and their friends.
Fannie and Freddie define the Democrat plantation. Do you really think any of them will take a hit? C’mon, they are there to hire all of the campign flunkies who find themselves unemployed after November. Its why Fannie and Freddie exist. To employ the unemployable and make loans to the undeserving. Shoosh, all this talk of justice just makes my head spin.
The corruption goes way back. Jamie Gorelick comes to mind.
Franky Raines who stole a carbon trading patent from Fannie and is conspiring with Al Gore to rape the taxpayers to the tune of BILLIONS. Jamie Gorelick who singlehandedly may have prevented the US from stopping 9/11 because she erected a legal wall between the CIA and FBI. Later gained fame as a 9/11 board member who helped cover up her and the Clintons incompetence which helped lead to 9/11. Jimmie Johnson, Board member at Goldman Sachs, former CEO of Fannie, helped Obama choose his running mate.......Love this about ol Jimmy from Wikipedia..............’during Johnson’s tenure as CEO, Fannie Mae had improperly deferred $200 million in expenses. This enabled top executives, including Johnson and his successor, Franklin Raines, to receive substantial bonuses in 1998.[3] A 2006 OFHEO report[4] found that Fannie Mae had substantially under-reported Johnson’s compensation. Originally reported as $6–7 million, Johnson actually received approximately $21 million.”
A virtual rogue’s gallery of corrupt Democrat insiders who used Fannie as their personal piggy bank and who have parlayed their influence into millions. Not content to rape the taxpayers, they also used their position to save a few bucks by accepting illegal cut rate mortgages from Aneglo Mozillo and Countrywide.
Throw them in jail you say? Just like Obama, they are above the law, for they are the elites. Laws are for little people like you and I.
Can anyone explain why these NGO financial institutions were excluded or exempted from the Financial Regulation bill that the Dems passed?
Timing has to be right.
If you move on this too early or when the timing is wrong, the MSM will hammer back and not let up until even MORE programs are invented for minorities, especially because the Dems have power.
I say...wait and see if Shelby gets the finance chair. He's been talking a lot about this and if the Repubs get the majority, he will move on it.
Affirmative Action never was, Franklin Raines should be in leg irons, equipped with a heavy sledgehammer and about 3 1/2 years into working on his own, personal 40 foot high rock pile.
The French did not chop off so many aristocrat heads over an economic downturn -- they did it because of the arrogance. Yes, France got a half century of Napolian-type tyrants for their trouble, but by golly, it darn sure wasn't any of the same tyrants who got their heads shaved down to the collar bone.
I swear, when ever there is a scam with political connections I find this lady buried in the back of the story or right in the middle of it.
“Vice Chairman Jamie Gorelick”
I have been seeing this name pop up for the last 14 years.
The CRA had very little to do with the meltdown.
Only 4% of the top 25 lenders making subprime loans were subject ot the provisions of the CRA.
Fannie and Freddie were not the prime cause either. Between 2004 and 2006, F&F actually cut by 50% their holdings in subprime loans.
The private sector banking institutions are largely responsible here. These private non-bank lenders enjoyed a regulatory gap, allowing them to be regulated by 50 different state banking supervisors instead of the federal government. And mortgage brokers, who also weren’t subject to federal regulation or the CRA, originated most of the subprime loans.
When Bill Clinton was president he said something to the effect that the government should have access to the immense amount of pension funds that are in the country. I suspect these agencies were manipulated and used to bilk pension funds and then they were redistributed to the TOO RICH TO FAIL and politicians.
reported in Washington Post at time of death
--The challenges included a disagreement with the company's regulator over disclosing certain information to investors. Kellermann wanted to ensure that the company would properly dis close required financial information, according to a source. He had spent years helping design its internal accounting system after major earnings irregularities earlier this decade.
This week, Freddie Mac hired a high-level consultant to help Kellermann with the myriad accounting questions he faced, a person familiar with the matter said.
Kinda like Cliff Baxter at Enron.
Big boys play for keeps...
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