« | »

Watch Dems Defend Fannie/Freddie Scam

Some more inconvenient truths, via YouTube:

Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis

It is quite an eye-opener. (So much so we wonder how long Google will allow it to stay on YouTube.)

Note how the Democrats complain about the “lynching” of Mr. Raines. (Who happens to be black.)

And who were these bravos beating up on?

Here are some articles about Mr. Falcon we posted earlier.

From the back pages of the Washington Post:

A Gutsy David Takes On a Goliath

By Cindy Skrzycki
Tuesday, December 28, 2004; Page E01

There are no awards for moxie in regulating, but if such a program is ever established, supporters of Armando Falcon Jr., director of the Office of Federal Housing Enterprise Oversight, would probably nominate him. The tiny agency was created in 1992 to oversee Fannie Mae and Freddie Mac, two government-backed housing financiers with assets and mortgage guarantees adding up to more than $3 trillion

It has David and Goliath features: a tiny agency taking on a gigantic company; Falcon, an unknown regulator paid $158,100 annually, going up against Fannie Mae chief executive Franklin D. Raines, who received $16.8 million in cash compensation in 2003

Three months ago, Falcon and his agency dropped a bombshell: a report that concluded Fannie Mae committed numerous accounting and earnings mistakes. The investigation began after members of Congress blamed OFHEO for missing similar problems at Freddie Mac.

Then the Securities and Exchange Commission’s chief accountant agreed with OFHEO, directing Fannie Mae to correct its financial statements, a move that could erase $9 billion in reported profit. The SEC and the Justice Department are investigating further, the company’s board has ordered an independent outside review, and shareholders have filed numerous lawsuits. Last week Raines and Fannie Mae’s chief financial officer were forced out by the company’s board, under pressure from OFHEO…

Next, a three year old report in the Washington Post:

False Signatures Aided Fannie Mae Bonuses, Falcon Says

By Kathleen Day and Terence O’Hara
Thursday, April 7, 2005; Page E01

Fannie Mae employees falsified signatures on accounting transactions that helped the company meet earnings targets for 1998, a “manipulation” that triggered multimillion-dollar bonuses for top executives, a federal regulator said yesterday.

Armando Falcon Jr., director of the Office of Federal Housing Enterprise Oversight, said the entries were related to the movement of $200 million in expenses from 1998 to later periods. The result of the changes was an increase in Fannie Mae’s 1998 earnings per share and the release of a $27.1 million bonus pool for senior executives.

Fannie Mae reported paying the following executive bonuses in 1998: chairman and chief executive James A. Johnson received $1.932 million; Franklin D. Raines, chairman-designate, received $1.11 million; Chief Operating Officer Lawrence M. Small received $1.108 million; Vice Chairman Jamie S. Gorelick received $779,625; Chief Financial Officer J. Timothy Howard received $493,750; and Robert J. Levin, an executive vice president, received $493,750…

Falcon, during congressional testimony and in comments afterward, publicly drew a link for the first time between the falsified signatures, which his agency disclosed last month, and the accounting manipulations that led to bonuses, which OFHEO disclosed in the fall. A Fannie Mae employee has told investigators that financial records from 1999 to 2002 bore his name and signature but were not prepared by him, Falcon testified.

“We have identified several problems involving procedures for preparing, reviewing, authorizing and recording” Fannie Mae’s accounting, Falcon said. His office has said it is sharing all information from its probe with the Securities and Exchange Commission and the Department of Justice…

A spokesman for Fannie Mae, Charles V. Greener, said the company had no comment. Lawyers for Raines and Howard did not return telephone calls seeking comment on whether they knew about the falsified signatures or other problems Falcon cited. Small declined to comment. Gorelick did not return a phone message. The company would not make Levin, who still works there, available…

The accounting scandals are being used by Rep. Richard H. Baker (R-La.), chairman of the subcommittee that held the hearing, and the Bush administration to move forward on legislation that would increase oversight and curb the growth of Fannie Mae and Freddie Mac. Baker and others have tried for years to pass such legislation, only to find it defeated by the lobbying efforts of the two companies.

The companies’ accounting scandals have bolstered the position of critics, such as Federal Reserve Board Chairman Alan Greenspan. He told the Senate Banking Committee yesterday that the companies’ federal subsidies may not benefit homeowners and that the firms’ large size and dominance of housing markets could pose a threat to the nation’s financial system if they ever fell into trouble.

While there is a general consensus in Congress that Fannie Mae and Freddie Mac need a new, stronger regulator, Greenspan’s testimony focused largely on the most controversial aspect of the debate: the size of the companies’ portfolios of mortgage assets. Together, the mortgages and mortgage-backed securities that Fannie Mae and Freddie Mac own total $1.5 trillion, a more than tenfold increase in the past 15 years.

The Fed chairman called on Congress to sharply reduce the two companies’ massive mortgage portfolios “while we can,” saying that without a reduction, they will “inevitably” have major financial problems, causing a crisis in the economy

Amazing, is it not?

This article was posted by Steve on Saturday, September 27th, 2008. Comments are currently closed.

13 Responses to “Watch Dems Defend Fannie/Freddie Scam”

  1. icarus79 says:

    I’m curious. I wonder if these Democrats would like their crow baked, fried, or on the grill. Oh wait, with the money they pocketed they’d probably order it “ala o’range”.

  2. texaspsue says:

    Here’s another great video explaining how we got to this point:

    http://www.youtube.com/watch?v=H5tZc8oH–o

    Why are the same Democrats, involved in helping to create this mess, allowed to be involved in fixing this economic crisis?

    The House Republicans have a handle on a true solution to this debacle but, the Democrats don’t want to hear it. (The Republicans are beholding to their constituents, the Democrats are beholding to the corrupt investors.)

  3. Consilience says:

    Some people are not fit to govern themselves—-the proponents of Fannie and Freddie are in that crowd.

  4. Gary says:

    O.K., McCain ad-makers. Do something effective, powerful and high-profile with stuff like this, and quick, or you’ll lose this election. Demonstrate your competence to take advantage of such an easy obvious opening, and maybe, just maybe, I and LOTS of other folks will start sending more money and support your way. But we’re not encouraged by McCain’s failure to point out any of this during the last (first) debate.

    It’s your move. Make us proud. Get a clue, and get money and votes. Nice guys finish last, unless they make it effectively known that it’s really the other side that’s not being nice.

  5. sheehanjihad says:

    McCain People!!! What Gary said. You have to understand that this is a gunfight. Leave your knife at home. Bring a cannon. Stop the namby pamby good guy crap or you will be in the audience come inauguration day.

  6. wirenut says:

    Gary , I don’t know which way your batting , but my clue is , if it’s not good for all of us . It’s not good for any of us . Nor, can it be good for the U.S.. Grow some and then come back . Your future is waiting/planned for you .

  7. Reality Bytes says:

    Outta the way boys – their’s gonna be a stampede by the news anchors over this!

    Any minute, you’ll see! They’ll be a comin’ after this one!

    Uh, (pssst) anyone see Catie? No? How ’bout Williams? not him neither huh. Oh,

    I guess we’re on our own then.

    How appropriate – Butch Cassidy and the Sundance Kid died in November too:

    http://www.youtube.com/watch?v=AQfyOr3e-34&feature=related

  8. Reality Bytes says:

    RUSH IS ON IT RIGHT NOW! GO GET EM TIGER!

  9. Steve says:

    “RUSH IS ON IT RIGHT NOW! GO GET EM TIGER!”

    He did an amazing job integrating it all.

    The chutzpah of these people is simply jaw-dropping.

  10. Reality Bytes says:

    I’ve been on a rant all weekend so much I need to stop at the florist on the way home.

    My message was the same as Rush’s and Morris’.

    For a minute there, McCain looked like TR riding in with his rough riders (the house republicans), but he waned the message and left them dry.

    McCAIN WOULD BE 10 PTS UP BY THE END OF THE WEEK IF HE JABBED THIS SCANDAL IN THE EYE OF THE DEMOCRAT MAJORITY!!! yes yelling again.

    This is the worst deal since the purchase of Manhattan, no wait, since the 2006 midterm election.

    Senator McCain, you’ve had that Bob Dole in the headlights look for too long now. Unleash Palin and get as upset about the liberals as you have with the right of your own party. We got your back – but we’re not gonna win if we have to drag you into November with you keep kickin’ and screamin’ the whole way.

    WAKE UP!

  11. RightWinger says:

    The RNC also needs to wake the f**k up!

    See, putting up the facts on the RNC website is not going to tip the election.

    Having bloggers and talk radio to fight the good fight for you is not going to do the job either. It will fire up the base, but what good does it to do when McCain wants to run a Bob Dole style campaign as mentioned above. Who the hell is going to fight for you when Obama wins and the “Fairness Doctrine” (aka: censorship of conservatives) and Talk Radio is silenced, followed by the bloggers.

    I don’t want to see one more RINO get on TV and not say anything because they all say “the American people see through all of this”. Bullshit. If the American people saw “through all of this”, McCain would be up 25 points right now. People would be screaming for Dodd’s and Frank’s heads on pikes right now.

    Instead all we get is Obama going on TV and saying this is all Bush’s fault and zero rebuttal. Zero. Remember, tell a lie often enough and people will believe it. That’s the motto of the Dems. Why else is Obama polling where he is.

    Ad’s pointing out how Democrats (Dodd, Obama and Frank) and liberal socialism are behind this whole mess need to be run 24/7 in all battleground states until election day. If anybody in the RNC values the future of this country, then you need to get work now. Let Palin loose and tell McCain to bring out the heavy artillery and bring it to bear.

    I’d also lay down the law with the MSM and start declaring for a fair shake or your out. Start by tossing NY Times and WaPo reporters from all press briefs to send a message.

  12. texaspsue says:

    I agree Rightwinger…”Let Palin loose and tell McCain to bring out the heavy artillery and bring it to bear.”

    Especially during the VP debate. As Rush says, “Turn Sarah Loose”. Let Sarah Palin be Sarah Palin.

    http://www.rushlimbaugh.com/home/daily/site_092408/content/01125107.guest.html

    Republicans need to quit being so PC, they need to kick butt and take names. The freedom of our Republic is at stake, the future of America. (We don’t want no stinkin’ socialism.)

  13. texaspsue says:

    Uh oh! Youtube has taken down this video…. http://www.youtube.com/watch?v=H5tZc8oH–o (It received over 1 millions views.)

    they claim:

    “This video is no longer available due to a copyright claim by Warner Music Group”

    I wonder if anyone has a copy at their website? (I guess the Democrats don’t want Americans to know the truth.)

    Update: I found the revised version of the same video:

    http://www.youtube.com/watch?v=NU6fuFrdCJY&channel=TheMouthPeace


« Front Page | To Top
« | »