Posted on 04/15/2015 12:46:47 PM PDT by tcrlaf
In what was billed as a high profile case, the SEC had sought financial and other penalties against three former Freddie Mac executives who allegedly “misled” investors in 2006 by understating the amount of subprime exposure the GSE had on its books while it was simultaneously still sucking up/packaging bad loans.
SNIP-- Here’s AP:
According to the SEC, Fannie and Freddie misrepresented their exposure to mortgages for borrowers with weak credit in reports, speeches and congressional testimony.
The SEC said Freddie told investors in late 2006 that it held between $2 billion and $6 billion of subprime mortgages on its books, but its actual subprime holdings were actually closer to $141 billion, or 10 percent of its portfolio in 2006, and $244 billion, or 14 percent, by 2008.
But all’s well that ends in a catastrophic housing market meltdown apparently because as WSJ notes, everyone seems to have gotten a pretty good deal considering their actions may have contributed mightily to the worst financial crisis since The Great Depression:
The civil case, filed in 2011, had alleged that three Freddie executives, former Chief Executive Officer Richard Syron, knowingly misled investors about the volume of risky mortgages the company purchased as the housing boom came to an end. The SEC had sought financial penalties against the executives and an order barring them from serving as officers and directors at other companies.
Instead, the executives agreed for a limited time not to sign certain reports required by chief executives or finance chiefs and to pay a total of $310,000 to a fund meant to compensate defrauded investors.
The breakdown of the fees is as follows: Richard Syron, $250,000; Donald Bisenius, $50,000; Patricia Cook, $10,000.
Those amounts will be paid by insurance from Freddie Mac that covered the executives.
(Excerpt) Read more at zerohedge.com ...
And all they get is NOT EVEN a slap on the wrist?
Where is the outrage? The Screaming Occutards???
“pay a total of $310,000 to a fund meant to compensate defrauded investors.”
A penny on the dollar, comparatively, would be a king’s ransom.
As another freeper said on another thread, this government is beyond fixing. Evidenced hourly with sham after sham being released, and the accepting sheeple ordering another beer.
BEYOND FIXING.
These people should be in GITMO..
“According to the SEC, Fannie and Freddie misrepresented their exposure to mortgages for borrowers with weak credit in reports, speeches and congressional testimony.
The SEC said Freddie told investors in late 2006 that it held between $2 billion and $6 billion of subprime mortgages on its books — but its actual subprime holdings were actually closer to $141 billion, or 10 percent of its portfolio in 2006, and $244 billion, or 14 percent, by 2008.”
Meanwhile the rest of us pays for this thievery.
And now NOTHING is going to be done to the gulity?
“This is what President Bush the younger tried to get fixed/stop, but the Dems would have none of it and it IS a large part of what led to the ‘08 “crash”. “
Bull manure. That’s NOT what Dubya was trying to fix. Dubya in fact encouraged subprime lending and praised the head of Fannie Mae for a program that provided free downpayments for those that didn’t have them. He was part of the problem.
Dubya’s administration was only concerned about the capital to asset ratio of Fanny and Freddy, it had nothing to do with this SEC filing.
You either have a very bad memory or an agenda.
President Bush tried several times to reign in Fannie and Freddie and was rebuffed by the Dems on Congress and and scolded by them. You've forgotten the whole Harold Raines mess, have you ?
They each took away on the high side of $20 million, so naturally there could not be allowed to have any underlings punished and fined while the top Democrats thrived.
Besides, Raines is a black executive who leaves a trail of investigations behind him, and Gorelick was Janet Reno's fixer (the Gorelick Wall between the CIA, FBI, and NSA) who Bill Clinton later put on the 9/11 Commission to protect him.
-PJ
Also thanks for the addendum, re Gorelick, who was also instrumental in this Fannie and Freddie mess!
clinton cronies started this mess and collected big bucks.
Franklin Raines - 90 million ( he gave some back)
Jamie Gorelick - 26 million
Daniel Mudd - 59 million
James Johnson - 21 million
Rahm - 300k for like 5 meetings plus 2500 shares of Freddie at a strike price of 40 bucks.
Never mind the friends that got “:grants” and “Dodd” mortgages preferences.
Course, Hillary knew nuttin about nuttin.
“HORSEFEATHERS! You either have a very bad memory or an agenda.”
I have a very good memory. I was one of the very few here at FR who was warning about a real estate bubble years before it blew up. Ex-Texan was another. My “agenda” is to deal in facts and slap down the sort of nonsense that you are posting.
“President Bush tried several times to reign in Fannie and Freddie and was rebuffed by the Dems on Congress and and scolded by them. You’ve forgotten the whole Harold Raines mess, have you ? “
Of course I haven’t forgotten. The difference is that I know what the Raines mess was about and you don’t. In fact I recall Raines well enough to know that his name isn’t Harold.
Raines and his cohorts were manipulating Fannie’s income statement in order to boost their bonuses. That is why the Securities Exchange Commission was investigating them after Fannie’s OFHEO regulatory body notified the SEC of accounting irregularities, a fact you would have been aware of if you actually knew what the SEC case was about.
You are similarly benighted over Bush’s motive for attempting to reign in Fannie and evidently believe it was somehow linked to the SEC action. It wasn’t. It had nothing to do with Raines cooking the books in order to increase his bonus, which was the SEC’s concern. It had nothing to do with subprime lending, a policy of which Dubya was a major cheerleader (see his American Dream Downpayment Initiative speech which includes his fulsome praise for Franklin Raines).
It had everything to do with Fannie’s capital ratio, as I mentioned in my previous post. I’m quite certain that you haven’t the faintest idea of what a capital ratio is and why it was of concern to Bush, but you could begin your education with this article from Cato:
http://www.cato.org/publications/speeches/role-fannie-freddie-driving-financial-system-leverage
Wow. Just wow.
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