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doug
15 years ago
Hardly accurate, Mike. F&F have always been an “ecumenical” “bread” basket:
…
At the top of the list we must place Franklin D. Raines, [as Frum mentioned] 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.” Raines agreed to a $24.7 million settlement with a federal regulator in exchange for charges being dropped, but he admitted no wrongdoing.
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. Federal investigators (PDF) would later say that “Fannie Mae’s management directed employees to manipulate accounting and earnings to trigger maximum bonuses for senior executives from 1998 to 2003.” The New York Times would call the manipulations an “$11 billion accounting scandal.” Gorelick, it should be noted, has never been charged with any wrongdoing.
Republicans also proved willing to serve Fannie Mae. Robert B. Zoellick, current head of the World Bank, has served President Reagan, President Bush 1, and President Bush 2 as a trade representative, deputy secretary of state, deputy secretary of the treasury, deputy chief of staff, and so on. Zoellick’s first Fannie Mae tour of duty was from 1983 to 1985, when he was a vice president. His second tour was 1993 to 1997, and his title was executive vice president in charge of lobbying, public affairs, and affordable housing. According to a July 23, 1997, report in the American Banker, Zoellick “has used his close ties to Republicans in Congress, such as Speaker of the House Newt Gingrich, R-Ga., to defend Fannie Mae from new taxes.”
John Buckley worked at Fannie Mae for almost 10 years (1991-2001) but took a leave of absence to serve as Bob Dole’s communications director during his 1996 run for the presidency. Before Fannie Mae, he worked at the National Republican Congressional Committee, served as press secretary to Rep. Jack Kemp, R-N.Y., deputy press secretary during the Reagan-Bush 1984 campaign, and press secretary to Lewis Lehrman when he ran for governor of New York. He hails from the political Buckley family, his uncles being William F. and James.
…
But, but, but, ………..goin’ after a hockey mom from Alaska for firing an insubordinate subordinate is much more fun than exposing the Democrats involvement in a nation financial crisis. Mike’s just got his priorities all screwed up. The next thing he’s going to tell us is fire melts steel.
good post, ……..but why leave out this little tidbit of information:
The New York Times reported this five years ago:
“The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac — which together have issued more than $1.5 trillion in outstanding debt — is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
The Democrats rejected this idea:
”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
cisco kid
15 years ago
I can’t wait to hear Sarah talk about this week during the debate. She has a TON of homework to do.
Leave it to Doug to try and spin his way out of this scandal.
His spin doesn’t pass the laugh test.
luva the scissors
15 years ago
very scarey. why do people have to be so corrupt and greedy? i don’t have that bone, and those that do don’t realize how they are ruining the average person.
Craig
15 years ago
As a Canadian, I have one question to DOUG:
Why do you hate so much your country? Because if you intend to vote for Obama, you definitely hate your country. Obama will kill this great country in every ways possible. And I am sure you know it, how could you not, it is so obvious that Obama is a fraud and an empty shell. So, please answer me, why do you hate son much your country? I really don’t understand the Obamarafatmaniacs.
luva the scissors
15 years ago
and obama is having a 28,000 dollar a plate fund raiser this evening, so if all of those freakin pampered hollywood types would get off their asses and pass the cash around instead of giving it to the dems it would be good. i know the cash is a drop in the bucket, but it really makes me sick that the dems had a heavy hand in creating this mess yet they are drawing in the dollars. they say the gop is the money party and they are the workers party…could have fooled me.
Missy
15 years ago
Heh,
VR4
15 years ago
After looking at the video, something just clicked:
Has anyone noticed how When Obama speaks its all about the past and pointing finger at everyone that makes mistakes. His whole speech is nothing more that underscoring supposed errors that others have made and how it hurts the working man.
Today was no different: crisis – well lets see how do we blame .
Where are the solutions ? Where is what he is going to do in the future to avoid these problems.
The solution for Obama is obviously this – Elect me I am the solution. thats it.
Listening to McCain the guy actuary has ideas on what and how to do things.
On one hand, I have to agree with Doug. I believe that Fannie/Freddie, thru history, is a bipartisan Congressional failure.
However I also agree with Mike’sA… and as most astutely documented by Rovin from the (perhaps ominous in the release date) Sept 11, 2003 NYTs article he quoted from… that the DNC Congressional members in the past decade are most recently responsible. They have refused to not only fix the problem, but even to acknowledge the Fannie/Freddie problem exists. This is not a bolt out of the blue event, by any standard.
However labeling the failure of the GSEs a Bush problem is a sign of a current events challenged bozo… one perpetually and desperately suffering from BDS. So I guess that will mean most every Obama supporter in the nation, right?
i.e. the ol’ commercial…. “give it to Mickie.. he’ll eat anything!” (not meaning you, Mike’sA, of course) Translated? The analogy that you can spoon feed any kind of political propaganda to the progressive gullible, and they swallow it hook, line and sinker – without a question.
Mata: In calling this a “Democrat scandal” I am merely applying the same rules they used to tar Republicans with the scandal label in the Enron and Jack Abramoff affairs. Democrats were involved in both of those and yet they were labeled Republican scandals.
It’s pretty clear from the Democrat party hacks who ran Fannie Mae and ran off with millions of dollars that it’s a Democrat problem. That and the top Fannie/Freddie contributions going to Democrats is enough for me.
Fit fit
15 years ago
It’s pretty clear from the Democrat party hacks who ran Fannie Mae and ran off with millions of dollars that it’s a Democrat problem. That and the top Fannie/Freddie contributions going to Democrats is enough for me.
It’s pretty clear that listening to Rush for a few hours is enough for you. You’re just regurgitating talking points on a complicated crisis that goes way beyond Freddie and Fannie. I’ll pay you the courtesy of assuming you’re not really this ignorant.
According to the New York Times, Democrats blocked Bush’s Fannie Mae and Freddie Mac reforms so low income people with bad credit could buy houses.
”These two entities -Fannie Mae and Freddie Mac – are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, and the less we will see in terms of affordable housing.” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. http://strategicthought-charles77.blogspot.com/2008/09/democrats-blocked-bushs-fannie-mae-and.html
Songbird
15 years ago
McCain just held a $50k a plate din-din in Miami following his own Beverly Hills fundraiser a couple weeks ago. No biggie. Just don’t throw bricks in glass houses.
Craig, worry about your own country. And stop questioning American’s patriotism because they have a different opinion. Believe it or not, it is the majority of Americans who want Obama to be president. And more importantly, an overwhelming majority of people under 45 years old (yes, the Americans of the future) that want Obama to be president. Hopefully, the popular vote wins this election.
I looked all over this blog and went through the list of authors twice.
Guess what?
Your name is not there.
You can play here if you play nice. However, while you are with us you would be wise to remember that you don’t set the rules.
In short, this is not your sandbox.
***
The “majority” of Americans want Obie to be President?
Really?
An “overwhelming majority” of people under 45 years old want Obie to be President?
Really?
Anyone under 45 is a future American?
Really now?
Finally, presidential elections in America are not decided based on the popular vote.
Scott Malensek
15 years ago
Woohoo! I’m one of Songbird’s under 45 Americans, and no…I do not support Governor-err, Senator Obama. Many people do, but it is not clear that it’s a majority. Were it clear, then the race wouldn’t be so tight. In fact, Obama SHOULD be way ahead in the polls given the state of the nation, Bush’s low approval ratings, seven years of war, mass media crush on Obama, and so forth, but he’s not. It’s neck and neck. That’s because Senator Obama cannot make a good decision. The first Presidential decision that someone makes is their VP pick, and instead of choosing Sen Clinton-who half of his party supported-he choose Senator Gaffe-o-matic Biden who had 1% of his own party’s support, and none of America’s. Now, we can distract and talk about Governor Palin, but the point here is that Senator OBAMA cannot pick a VP. Obama’s theme of HOPE and optimism is gone now as the man, his surrogates, and his campaign can’t say 5 words without making a distracting jibe at Senator McCain or Governor Palin. His theme of CHANGE has been tossed out the window with every new attack ad ala old school politics rather than the new type that he promised. Obama’s claimed to oppose the war, but voted to keep it going, then secretly asked the Iraqis to stall it ’til he could be elected so he could use it as a campaign issue. He made DOZENS of campaign promises in his acceptance speech, promised everything for everybody, and then has no way of paying for it. He wants to tax investors more despite the investment crisis. He wants to tax small business owners (most of whom make more than $250k and employ 50% of the nation) while at the same time demanding those same small business owners hire more people and pay more. His foreign policy is the same as Bush’s, and all he’s got left is his ability to use a teleprompter and his unwavering obedience and unquestioning partisanship of his supporters. This man could very well lose the election that Democrats have no excuse for losing, and it’s because he’s just a used car salesman, a snake oil doc, a spinmeister, an actor pretending to be President; a man who is no longer inevitable.
Songbird
15 years ago
Play nice? I stated a few facts. Was my comment offensive to anyone?
I’ve examined nearly every poll that has been published the last few weeks and Obama only cracked 50% in one poll for a couple of days after his convention. His average overall has never done so:
Besides, the only poll that matters is the one taken on election day and I’m getting a little tired of you people creating some reality in your minds and then screaming when the truth smacks you in the face.
Your Xenophobic comments toward Craig are out of step with your candidates own stated views that we need to embrace others from around the world.
Get with the program.
OlMoney
15 years ago
Blame it on one party or the other…simply ridiculous cant either way. The problem lies in deregulating financial institutions during a period of extreme transformation of markets and technologies providing end user financial products. When one slices and dices ‘bad’ debt, packages it as a ‘sure’ thing, you still have junk in the end. Now we have a conservative republican administration ‘socializing’ free market bad debt for the American public to pay off for decades to come. Seems oxymoronic…but the only moron in the word are those that believe there is a fundamental difference between the Democrats and Republicans when it comes to Wall Street. Next time perhaps we should have enlightened regulatory controls in place before we ‘allow’ the Street to spit out garbage to engender wealth. Regardless of our politics we have all been pigs feeding at the ‘tranche’
Greg
13 years ago
George W. Bush called for a comprehensive overhaul of the housing finance industry on September 10, 2003, with a new agency under the Treasury Department to monitor and regulate Fannie Mae.
Republicans had controlling majorities of both the House and Senate from 2003 through 2006. A republican President was in the White House. Bills were introduced. Each was sent to committee, where nothing at all was done.
How can no meaningful action throughout the course of the 108th and 109th Congresses be entirely the fault of a disempowered democratic minority? It seems to me that somebody must not have been trying very hard.
Hardly accurate, Mike. F&F have always been an “ecumenical” “bread” basket:
Read the rest for more crooks and villains.
http://www.slate.com/id/2200160/
More here on F&F being a bipartisan “looting” industry:
http://www.boston.com/news/nation/articles/2008/07/13/fannie_freddie_critics_say_crisis_was_building?mode=PF
But, but, but, ………..goin’ after a hockey mom from Alaska for firing an insubordinate subordinate is much more fun than exposing the Democrats involvement in a nation financial crisis. Mike’s just got his priorities all screwed up. The next thing he’s going to tell us is fire melts steel.
/sarc
doug,
good post, ……..but why leave out this little tidbit of information:
The New York Times reported this five years ago:
The Democrats rejected this idea:
”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
I can’t wait to hear Sarah talk about this week during the debate. She has a TON of homework to do.
Leave it to Doug to try and spin his way out of this scandal.
His spin doesn’t pass the laugh test.
very scarey. why do people have to be so corrupt and greedy? i don’t have that bone, and those that do don’t realize how they are ruining the average person.
As a Canadian, I have one question to DOUG:
Why do you hate so much your country? Because if you intend to vote for Obama, you definitely hate your country. Obama will kill this great country in every ways possible. And I am sure you know it, how could you not, it is so obvious that Obama is a fraud and an empty shell. So, please answer me, why do you hate son much your country? I really don’t understand the Obamarafatmaniacs.
and obama is having a 28,000 dollar a plate fund raiser this evening, so if all of those freakin pampered hollywood types would get off their asses and pass the cash around instead of giving it to the dems it would be good. i know the cash is a drop in the bucket, but it really makes me sick that the dems had a heavy hand in creating this mess yet they are drawing in the dollars. they say the gop is the money party and they are the workers party…could have fooled me.
Heh,
After looking at the video, something just clicked:
Has anyone noticed how When Obama speaks its all about the past and pointing finger at everyone that makes mistakes. His whole speech is nothing more that underscoring supposed errors that others have made and how it hurts the working man.
Today was no different: crisis – well lets see how do we blame .
Where are the solutions ? Where is what he is going to do in the future to avoid these problems.
The solution for Obama is obviously this – Elect me I am the solution. thats it.
Listening to McCain the guy actuary has ideas on what and how to do things.
On one hand, I have to agree with Doug. I believe that Fannie/Freddie, thru history, is a bipartisan Congressional failure.
However I also agree with Mike’sA… and as most astutely documented by Rovin from the (perhaps ominous in the release date) Sept 11, 2003 NYTs article he quoted from… that the DNC Congressional members in the past decade are most recently responsible. They have refused to not only fix the problem, but even to acknowledge the Fannie/Freddie problem exists. This is not a bolt out of the blue event, by any standard.
However labeling the failure of the GSEs a Bush problem is a sign of a current events challenged bozo… one perpetually and desperately suffering from BDS. So I guess that will mean most every Obama supporter in the nation, right?
i.e. the ol’ commercial…. “give it to Mickie.. he’ll eat anything!” (not meaning you, Mike’sA, of course) Translated? The analogy that you can spoon feed any kind of political propaganda to the progressive gullible, and they swallow it hook, line and sinker – without a question.
Mata: In calling this a “Democrat scandal” I am merely applying the same rules they used to tar Republicans with the scandal label in the Enron and Jack Abramoff affairs. Democrats were involved in both of those and yet they were labeled Republican scandals.
It’s pretty clear from the Democrat party hacks who ran Fannie Mae and ran off with millions of dollars that it’s a Democrat problem. That and the top Fannie/Freddie contributions going to Democrats is enough for me.
It’s pretty clear that listening to Rush for a few hours is enough for you. You’re just regurgitating talking points on a complicated crisis that goes way beyond Freddie and Fannie. I’ll pay you the courtesy of assuming you’re not really this ignorant.
According to the New York Times, Democrats blocked Bush’s Fannie Mae and Freddie Mac reforms so low income people with bad credit could buy houses.
”These two entities -Fannie Mae and Freddie Mac – are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, and the less we will see in terms of affordable housing.” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee.
http://strategicthought-charles77.blogspot.com/2008/09/democrats-blocked-bushs-fannie-mae-and.html
McCain just held a $50k a plate din-din in Miami following his own Beverly Hills fundraiser a couple weeks ago. No biggie. Just don’t throw bricks in glass houses.
Craig, worry about your own country. And stop questioning American’s patriotism because they have a different opinion. Believe it or not, it is the majority of Americans who want Obama to be president. And more importantly, an overwhelming majority of people under 45 years old (yes, the Americans of the future) that want Obama to be president. Hopefully, the popular vote wins this election.
Songbird,
I looked all over this blog and went through the list of authors twice.
Guess what?
Your name is not there.
You can play here if you play nice. However, while you are with us you would be wise to remember that you don’t set the rules.
In short, this is not your sandbox.
***
The “majority” of Americans want Obie to be President?
Really?
An “overwhelming majority” of people under 45 years old want Obie to be President?
Really?
Anyone under 45 is a future American?
Really now?
Finally, presidential elections in America are not decided based on the popular vote.
Woohoo! I’m one of Songbird’s under 45 Americans, and no…I do not support Governor-err, Senator Obama. Many people do, but it is not clear that it’s a majority. Were it clear, then the race wouldn’t be so tight. In fact, Obama SHOULD be way ahead in the polls given the state of the nation, Bush’s low approval ratings, seven years of war, mass media crush on Obama, and so forth, but he’s not. It’s neck and neck. That’s because Senator Obama cannot make a good decision. The first Presidential decision that someone makes is their VP pick, and instead of choosing Sen Clinton-who half of his party supported-he choose Senator Gaffe-o-matic Biden who had 1% of his own party’s support, and none of America’s. Now, we can distract and talk about Governor Palin, but the point here is that Senator OBAMA cannot pick a VP. Obama’s theme of HOPE and optimism is gone now as the man, his surrogates, and his campaign can’t say 5 words without making a distracting jibe at Senator McCain or Governor Palin. His theme of CHANGE has been tossed out the window with every new attack ad ala old school politics rather than the new type that he promised. Obama’s claimed to oppose the war, but voted to keep it going, then secretly asked the Iraqis to stall it ’til he could be elected so he could use it as a campaign issue. He made DOZENS of campaign promises in his acceptance speech, promised everything for everybody, and then has no way of paying for it. He wants to tax investors more despite the investment crisis. He wants to tax small business owners (most of whom make more than $250k and employ 50% of the nation) while at the same time demanding those same small business owners hire more people and pay more. His foreign policy is the same as Bush’s, and all he’s got left is his ability to use a teleprompter and his unwavering obedience and unquestioning partisanship of his supporters. This man could very well lose the election that Democrats have no excuse for losing, and it’s because he’s just a used car salesman, a snake oil doc, a spinmeister, an actor pretending to be President; a man who is no longer inevitable.
Play nice? I stated a few facts. Was my comment offensive to anyone?
Songbird: Those are only facts in your mind.
I’ve examined nearly every poll that has been published the last few weeks and Obama only cracked 50% in one poll for a couple of days after his convention. His average overall has never done so:
http://www.realclearpolitics.com/epolls/2008/president/us/general_election_mccain_vs_obama-225.html#polls
Besides, the only poll that matters is the one taken on election day and I’m getting a little tired of you people creating some reality in your minds and then screaming when the truth smacks you in the face.
Your Xenophobic comments toward Craig are out of step with your candidates own stated views that we need to embrace others from around the world.
Get with the program.
Blame it on one party or the other…simply ridiculous cant either way. The problem lies in deregulating financial institutions during a period of extreme transformation of markets and technologies providing end user financial products. When one slices and dices ‘bad’ debt, packages it as a ‘sure’ thing, you still have junk in the end. Now we have a conservative republican administration ‘socializing’ free market bad debt for the American public to pay off for decades to come. Seems oxymoronic…but the only moron in the word are those that believe there is a fundamental difference between the Democrats and Republicans when it comes to Wall Street. Next time perhaps we should have enlightened regulatory controls in place before we ‘allow’ the Street to spit out garbage to engender wealth. Regardless of our politics we have all been pigs feeding at the ‘tranche’
George W. Bush called for a comprehensive overhaul of the housing finance industry on September 10, 2003, with a new agency under the Treasury Department to monitor and regulate Fannie Mae.
Republicans had controlling majorities of both the House and Senate from 2003 through 2006. A republican President was in the White House. Bills were introduced. Each was sent to committee, where nothing at all was done.
How can no meaningful action throughout the course of the 108th and 109th Congresses be entirely the fault of a disempowered democratic minority? It seems to me that somebody must not have been trying very hard.
http://uspolitics.about.com/od/usgovernment/l/bl_party_division_2.htm