Shot in the Fannie
The other day I posted a video about the Fannie Mae/Freddie Mac issue. I have some new information that I got circulated to me. Let’s check it out and see who is to blame for this financial crisis. The text below is not my opinion, it is fact.
FACT: Fannie Mae is a GSE (Govt. Sponsored Entity) regulated by Congress.
FACT: Fannie Mae buys mortgages from other companies.
FACT: It is backed by the taxpayers for all losses, but keeps all profits.
FACT: President Clinton loosened Home Loan Requirements in 1998.
1998
Banks begin making thousands of bad loans, 0 down, no documentation, for 120%! (1998 – 2008).
Executives at Fannie receive huge bonuses if loan targets are met.
Franklin Raines and Jamie Garelick from the Clinton Administration are appointed to run Fannie Mae.
2003
President Bush proposes a new oversight committee to clean up Fannie Mae, but Democrats derail the effort. (See the video on my previous post)
Rep. Melvyn Watt, (D-NC) Committee on Financial Institutions & Consumer Credit. stated, “I don’t see much other than weakening the bargaining power poorer families to get affordable housing.”
1999 – 2004
Raines earns $100 million in bonuses; Garelick earns $75 million in bonuses.
In 2004, Enron collapses, congress investigates, Executives Skilling & Lay go to jail, for fraudulent bookkeeping.
Congress responds with the Sorbanes-Oxley Act, more heavy regulation of corporations.
2004
An OMB investigation finds massive fraudulent bookkeeping at Fannie Mae.
False numbers triggered executive bonuses every year.
Congress holds no hearings, no one goes to jail, or is punished.
WHY NOT?
1999 -2005
Fannie Mae gives millions to Democratic causes, examples: Jesse Jackson & ACORN.
Fannie Mae pays millions to 354 congressmen and senators, from both parties.
Who got the most money?
Top 4 Recipients
#1 Sen. Christopher Dodd, (D-CT) – Chairman of the Banking, Housing, & Urban Affairs Committee
#2 Sen. Barack Obama, (D-IL) – Federal Financial Management Committee
#3 Sen. Chuck Schumer, (D-NY) – Chairman of the Finance Committee
#4 Rep. Barney Frank, (D-MA) – Chairman of the House Financial Services Committee
2005
Franklin Raines & top execs are forced to resign from Fannie Mae.
They do not go to jail.
There is no media “perp walk.”
They keeps all of their bonuses
They finally pay $31.4 million in civil fines.
The Federal Housing Enterprise Regulatory Reform Act is sponsored by:
#325 Sen. John McCain, (R-AZ) – Armed Services, & Commerce, Science, & Transportation
“If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.”
None of the top 4 recipients support the legislation. The reform act is blocked by Democrats, never even making it out of committee. None of the politicians return any of the money, tainted by fraud.
2008
Fannie Mae & Freddie Mac go bankrupt and the government takes them over completely.
Lehman Brothers, goes bankrupt from investing in bad mortgages.
AIG get $85 million in loan guarantees, after insuring bad loans & projects.
Taxpayers will ultimately pay BILLIONS.
Franklin Raines is now an advisor to the Obama Campaign which wants the government to take over more of the economy.
Did government involvement in the mortgage market work out?
How will even MORE government involvement make it better? Do you want to be Sweden?
McCain favors revising regulations & loan standards, selling off Fannie & Freddie.
SOURCES
Congressional Record, 5/25/06
“Hannity & Colmes,” Fox News, 9/16-9/17/08
Herald Tribune, 4/18/08
New York Times, 9/13/03
www. govtrack.com, 9/17/08
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Barack Obama Is Not My President
And Americans won’t open their eyes until its too late…