Posted on 08/08/2011 7:50:32 AM PDT by STARWISE
Credit rating agency Standard and Poor's on Monday downgraded the debt of mortgage finance giants Fannie Mae and Freddie Mac. The downgrades to AA+ are part of the continued fallout from the agency's decision to drop U.S. sovereign debt to AA+, an unprecedented move that rattled investors and sparked concern over the long-term impact of the action
It was widely expected that S&P's downgrade of U.S. debt would roll downhill to other entities that are closely linked to the federal government.
(Excerpt) Read more at money.cnn.com ...
Yes, I agree entirely. Fannie/Freddie should not have been AAA back before the “Uncle Sugar” (I like that) guarantees from 2008. I was just giving a simple answer.
If ANY of the ratings companies had a shred of integrity they wouyld have written Fannie and Freddie off 5 years ago. Instead they kept them and all the other banks and mortgage companies trading in wortrhless junk mortgages at AAA until the bottom fell out. Bunch of bums!
“Why weren’t they downgraded years ago?”
Apparently, some of the bond rating companies fired anyone in their companies, who dared to say/suggest that Freddie and Fanny should be graded as poor junk bonds. Rush confirmed this a week or two ago.
Personally, years ago, I down graded Fredie and Fanny years ago to a z-. At that time Bob Brinker, the pimps from Pimpco and other left wing investment pimps were still pushing these junk bonds.
Democrats have a blanket immunities in all matters.
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I agree but what happened to “liberty and justice for all?”
The rule of law is one of the essential pillars of a free economy. These crimes are right in the open by companies too big to fail or outright supported by the government as the few loot the treasury.
It’s corrosive to our economy and creates corporatism that makes it much harder for the little guy to succeed and compete. The big guys have teams of lawyers to navigate this mess but the little guy can’t afford it.
We will never see a true recovery until these things are investigated and this corruption is stopped. Otherwise, we are no different (or better) than Russia.
It needs to be investigated. Where is the FBI or the SEC?
How many years has Glenn Beck been totally correct and prophetic, while being personally and professionally smeared and attacked, saying: prepare, it’s coming, etc etc etc?
On the radio live now
http://v4.player.abacast.com/player/player.php?pid=1187
In my opinion the fear of a Federal Government that act like a communists hell hole like Nazi Germany it would be hard to buck the power. America is in real trouble and at least half of the citizens are ignorant.
They are apparently H0lder's peeps.
Yep, it’s all about “reparations”.
Everything Ubama does is about “reparations”.
Dear Attorney General Holder: We write to demand an immediate investigation into the activities of White House Chief of Staff Rahm Emanuel. We believe there is an abundant public record which establishes that the actions of the White House have blocked any investigation into his activities while on the board of Freddie Mac from 2000-2001, and facilitated the cover up of potential malfeasance until the 10-year statute of limitations has run out.
The purpose of this letter is to connect the dots to establish both the conduct of Mr. Emanuel and those working with him to thwart inquiry, and to support your acting speedily so that the statute of limitations does not run out before the Justice Department is able to empanel a grand jury.
The New York Times reports that the administration is negotiating to double the commitments to Fannie and Freddie for a total of $800 billion by December 31, in order to avoid the congressional approval that would be needed after that date. But there currently is no Inspector General exercising independent oversight of these entities.
Acting Inspector General Ed Kelly was stripped of his authority earlier this year by the Justice Department, relying on a loophole in a bill Mr. Emanuel cosponsored and pushed through Congress shortly before he left for the White House.
This effectively ended Mr. Kelly’s investigation into what happened at Fannie and Freddie. Since that time, despite multiple warnings by Congress that having no independent Inspector General for a federal agency that oversees $6 trillion in mortgages is a serious oversight, the White House has not appointed one.
We recognize that these are extremely serious accusations, but the stonewalling by Mr. Emanuel and the White House has left us with no other redress. A 2003 report by Freddie Mac’s regulator indicated that Freddie Mac executives had informed the board of their intention to misstate the earnings to insure their own bonuses during the time Mr. Emanuel was a director. But the White House refused to comply with a Freedom of Information Act request from the Chicago Tribune for those board minutes on the grounds that Freddie Mac was a “commercial” entity, even though it was wholly owned by the government at the time the request was made.
If the Treasury approves the $800 billion commitment to Fannie and Freddie by the end of the year, it will mean that under the influence of Rahm Emanuel, the White House is moving a trillion-dollar slush fund into corruption-riddled companies with no oversight in place. This will allow Fannie and Freddie to continue to purchase more toxic assets from banks, acting as a back-door increase of the TARP without congressional approval.
Before the White House commits any more money to Fannie and Freddie, we call on the Public Integrity Section in the Justice Department to begin an investigation into the cause of Fannie and Freddie’s conservatorship, into Rahm Emanuel’s activities on the board of Freddie Mac (including any violations of his fiduciary duties to shareholders), into the decision-making behind the continued vacancy of Fannie and Freddie’s Inspector General post, and into potential public corruption by Rahm Emanuel in connection with his time in Congress, in the White House, and on the board of Freddie Mac.
We also call for the immediate appointment of an Inspector General with a complete remit to go after this information.
We both come from differing political ideologies. One of us is the conservative head of a transparency foundation, and the other is the publisher of a liberal political blog. But we make common cause today out of grave concern for the future of our country in the wake of corruption-riddled bailouts.
These bailouts continue to rob Main Street to benefit Wall Street, and, because of that, we together demand the resignation of Mr. Emanuel, a man who has steadfastly worked to obstruct both oversight and inquiry into the matter. Rahm Emanuel’s conflicts of interest render him far too compromised to serve as gatekeeper to the President of the United States.
We are available at your earliest convenience to meet with you directly.
Sincerely,
Jane Hamsher
Grover Norquist
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ANALYSIS Every minute that conniving little turd Emanuel was in "OUR WH," we are being screwed. God knows how much this leech is sucking up. Ohaha put him and his brother in charge of Medicare/Aid billions and he will have dominion over Ohaha's cocokmamie trillion dollar health reform.
Emanuel is wallowing in trillions of stimulus and bailout dollars. G/S got $17 Billion from Ohaha's AIG bailout---how much of that $17B went to Emanuel---that was wire-transferred to offshore banks?
An interesting early chapter in the Goldman-Emanuel relationship took place in the setting of Bill Clinton’s campaign for the White House in 1992. Clinton hired Emanuel as his chief fundraiser.
At the same time, however, Emanuel was on the payroll of Goldman Sachs, receiving $3,000 per month from the firm to “introduce us to people,” in the words of one Goldman partner at the time. This is certainly a noteworthy relationship, but it’s one that has almost entirely escaped scrutiny.
Did Emanuel reveal to Ohaha all his Wall Street ties as the trillion dollar fimnancial bailouts commenced? (smirk)
In his four terms in Congress, Emanuel raised $74,750 from Goldman, making the firm his number four source of funds. Goldman helped Emanuel. So how has Emanuel helped Goldman? The most obvious answer is in Emanuel’s lead role in shepherding the “$700 billion” bailout—----first proposed by former a Goldman CEO Henry Paulson—through the skeptical House.
How much of the trillion dollar stimulus did Emanuel---suck up----that was wire-transferred to offshore banks? Emanuel's dual citizenship is crucial----since Israel is the only place in the world where an individual can debark, bring a suitcase full of cash to a bank and nobody asks where it came from or if taxes were paid on it. Emanuel's father is an Israeli and Rahm once volunteered for the military in that beleaguered country.
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BACKSTORY Rahm Emanuel was appointed to the Freddie Mac board Feb 2000 by Bill Clinton, after serving as Clinton's White House political director. Emanuel was a vocal defender of Clinton after scumbag Monica Lewinski gave Clinton BJ's in exchange for a top federal job....and may have aided and abetted the multiple sex rendezvous.
Emanuel then left to run for Congress in 2001...this qualified Emanuel for $380,000 in stock and options and a $20,000 annual fee..... plus all this lowlife could steal.
In Congress, the America-hating worm put the US in financial jeopardy----he passed a bailout of Fannie and Freddie, cosponsoring the Housing and Economic Recovery Act of 2008, which also dissolved OFHEO. It moved their regulatory authority to the Federal Housing Finance Agency (FHFA), which took Fannie and Freddie under conservatorship in Sept 2008.
The same act abolished the Federal Housing Finance Board (FHFB) and replaced it with the FHFA.
In addition to his role as White House Chief of Staff, Mr. Emanuel was heavily involved in decisions made by the US Treasury Dept.
Yes, he was giving a book review on "Reckless Endangerment," a superb book on America's financial crisis from A to Z!!!
Google "Reckless Endangerment" and read some of the reviews. What A priceless revelation of facts that place the blame at the feet of Democrats, NOT teaparty patriots!!!
Does that aslo mean the usurper will be getting smaller kickbacks from Frannie/Freddie? Remember, as a junior senator, he was getting the greatest $$$ from them.
Well... yeah. This is the guy who was in charge of Fannie Mae.
His name (honest to God) is Franklin Delano Raines, and he resigned from Fannie Mae in disgrace after making himself a multi-millionaire. "Accounting irregularities" were uncovered, and Raines' $5 million in "settlement" fines were paid by Fannie Mae's insurance policies. The rest of Raines and company's corruption was nicely swept under the rug.
But yeah, he is one of Holder's people. And Ubama's. Those crooks stick together.
Should this be in Breaking?
Below is the link to how Moody’s sold its soul to protect the thieves/thugs running Freddy and Fannie.
Moody’s turned a blind eye and deaf ear to its auditors who wanted to blow the whistle on the left wing criminals running Freddie/Fanny and of course Pelosi/Reid/Obozo. Then if their auditors made too much noise, they were fired.
http://www.mcclatchydc.com/2009/10/18/77244/how-moodys-sold-its-ratings-and.html
How The Democrats Caused The Financial Crisis: Starring Bill Clinton’s HUD Secretary Andrew Cuomo
http://www.youtube.com/watch?v=Lr1M1T2Y314
Democrats in their own words Covering up the Fannie Mae
http://www.youtube.com/watch?v=_MGT_cSi7Rs
Let’s remember this as well, the ‘suicide’ of Kellerman
http://www.youtube.com/watch?v=sO3jsULFemc&feature=related
Let’s go back just a tad this year to see the meme (Bad republicans re: F&F
REFERENCE---BY MICHELLE MALKIN Fannie Mae serves as an industrial-sized patronage factory -- sharing profits with political allies, spreading taxpayer funds to voting blocs----like ethnic groups-----and doling out jobs to left-wing academics, Washington has-beens and back-scratching buddies. Obama insider Fannie Mae exec Jim Johnson got sweetheart loans from shady subprime Countrywide. Pols raked in six-figure salaries as F/F engaged in Enron-style accounting, plunged into debt and helped usher in the subprime housing meltdown through cockamamie lending practices.
Bill Clinton appointed Franklin Raines, Daley and Rahm Emanuel just as the quasi-governmental F/M engaged in rampant book-cooking so that F/M insider could help themselves to massive bonuses. The Chi/Tribune exposed how Emanuel's "profitable stint" was low-show w/ no work involved. Emanuel was not even assigned to committees, according to company proxy statements (more on Raines and Emanuel below).
Immediately upon joining the board, Emanuel and other insiders qualified for $380,000 in stock and options plus a $20,000 annual fee, public records indicate. W/ Wall Street Emanuel there, accounting tricks were used to mislead shareholders about outsize profits F/M reaped from risky investments. The goal was to cook the books to keep fraudulent earnings on the books, to make Freddie Mac look profitable on paper-----AND to fraudulently obtain humongous annual bonuses for political insiders.
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Freddie and Fannie, the two big quasi-govt mortgage banks that HAVE ALREADY RECEIVED HUGE federal bailouts, had huge lobbying budgets that they used for political contributions to keep regulators off their backs.
So which politicians get Fannie and Freddie political contributions.
The top three U.S. Senators getting big Fannie and Freddie political bucks were Democrats and number two was then-Senator Barack Obama who had only been in the Senate four years but still managed to grab the number two spot ahead of John Kerry, decades in the senate, and Chris Dodd then-chairman of the powerful Senate Banking Committee.
Fannie and Freddie were creations of the Congressional Democrats and the Clinton White House, designed to make mortgages available to more people, and as it turned out, some many many who couldn’t afford them.
Fannie and Freddie have also been places for big Washington democrats to go to work in the semi-private sector and pocket millions.
The Clinton Administration’s White House budget director Franklin Raines was appointed by Clinton to run Fannie........ and collected $50 million dollars. Jamie Gurilli Gorelick (now BP's attorney), a Clinton Justice Apartment Official, worked for Fannie and took home $26 million dollars in mfg bonuses.
Big Democrat Jim Johnson, recently on Obama’s VP search committee hauled in millions from his Fannie Mae CEO job. Now remember, Obama’s ads and stump speeches attacked McCain and Republican policies for the financial turmoil. It is demonstrably not Republican policy and worse, it appears the man attacking McCain, Senator Obama, was at the head of the line when the piggy’s lined up at the Fannie and Freddie trough for campaign bucks...." - FoxNews, Sept. 2008
The Office of Federal Housing Enterprise Oversight’s report reported that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives.
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Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets (by cooking the books).
Ex-Fannie CEO Franklin Raines (Clinton appointee) is a parasitic crook of the first order. This thief cooked the FM books precipitating losses of $9BILLION (that we know of) for the single purpose of creating $50 million fraudulent bonuses for himself (and millions for other F/M insiders). The SEC said Raines broke accounting rules by playing with risky derivatives.
The US Government filed suit against Franklin Raines when the depth of the F/M accounting scandal became clear. READ IT HERE http://housingdoom.com/2006/12/18/fannie-charges/
The Government noted, "The 101 charges reveal how the individuals improperly manipulated earnings to maximize their bonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public.....explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner."
These charges were made in 2006. The Court ordered Raines to return $50 Million Dollars he received in bonuses based on the misstated Fannie Mae profits. (Soon going to trial.)
Moodys in the past few years has been run by left wing criminals.
A few years ago when its auditors tried warn us about the crappy fanny/fredie bonds, Moody’s fired them and promoted criminal liberals.
Moody’s should be sued by everyone, who lost money on the crap bonds issued by fanny/fredie. Its execs who fired people for wanting to tell the truth, are bigger criminals than Madoff and Stanford. They should arrested, frog marched to jail with no bail until they are tried for criminal actions against American and foriegn investors.
Take a few minutes to go this link to see the criminal actions of those who controlled the ratings on Fannie/Freddie to enable the looting and default of America.
http://www.mcclatchydc.com/2009/10/18/77244/how-moodys-sold-its-ratings-and.html
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