OK - a lot of this information is about Fanny Mae (and her evil-twin Freddy Mac) pre-congress takeover. I will try to make this interesting.
FACT
Fannie Mae is a GSE (Govt. Sponsored Entity) regulated by Congress.
Fannie Mae buys mortgages from other companies.
It is backed by the taxpayers for all losses, but keeps all profits.
Bill Clinton, POTUS 1992 - 2000, Democrat, "great-thinker", cigar smoker (Obama likes the occasional Cuban beauty too), grammarian (what does "sex" really mean), was the President who relaxed Home Loan Requirements so anybody could "live the American dream," and own a home - even if they were nowhere near able to afford said home.
Between 1998 and 2008, Banks across American made no-down-payment, 120% of assessed value loans. This was all based on President Clinton's Home Loan Requirements edict. This stupid lending to unqualified loan applicants becomes known as Sub-prime lending.
Franklin Raines and James Garelick (part of President Clinton's gang/administration) were put in charge of Fanny Mae. They were promised BIG BONUSES if they met their loan targets.
President George W. Bush proposed an "OVERSIGHT COMMITTEE" (if that sounds familiar, it was one of the strings that Joe Biden kept hitting during last night's VP debate - Oversight - Oversight - Oversight! Hell, wonder where he got that from?) - BUT the DEMOCRATS in Congress derailed that proposal ---- Rep. Melvyn Watt, (D-NC) Committee on Financial Institutions & Consumer Credit. stated, “I don’t see much other than weakening the bargaining power [of] poorer families to get affordable housing.” In other words, housing they could not afford to make payments on, or pay the taxes for.
Between 1999 and 2004, Raines (CEO FANNY MAE) earns $100 million in bonuses. Garelick (Prez FANNY MAE) 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, but still NO REGULATION OF FANNY MAE.
An OMB (Office of Management & Budget) 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?
Because Fannie Mae was giving millions of $$$ to Democratic causes, such as the Rev. Jesse Jackson & ACORN. Fannie Mae was also paying millions of $$$ to 354 congressmen and senators, from both parties. SO, who got the most money?
#1 Sen. Christopher Dodd, (Democrat-CT) Chairman of the Banking, Housing, & Urban Affairs Committee. Senator Dodd is currently leading the charge to take $700,000,000,000 dollars from the American taxpayer to bail the failing credit lenders out - a government handout that our children's children's children will be paying for.
#2 Sen. Barack Obama, (Democrat-IL) Federal Financial Management Committee. Well, everybody knows about Senator B. Hussein Obama, the President-elect of the United States, according to the media five weeks before the Nov. 4 election.
#3 Sen. Chuck Schumer, (Democrat-NY) Chairman of the Finance Committee. The State Attorney General of California, in late-August 2008, announced that his office may investigate Senator Schumer over the Freddy Mac collapse -- it seems that perhaps, maybe Senator Schumer may have "leaked" confidential information about the ability of the company's ability to survive. What a terrible way to pay back all those millions of dollars he took from Fanny Mae.
#4 Rep. Barney Frank, (Democrat-MA) Chairman of the House Financial Services Committee. Representative Frank led the democratic push to stall, and eventually kill the Reform Act which would, maybe, have prevented the downfall of his "sugar-mommie", Fanny Mae.
In 2005, A Reform Act was presented by President Bush and a certain leading Republican Senator, Senator John McCain, which would have provided for "oversight" of both Fanny Mae and Freddy Mac! McCain stated, in 2005, when presenting The Federal Housing Enterprise Regulatory Reform Act:
“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.”
But, none of the top 4 recipients supported the legislation (in case you don't remember who, let me help: Dodd, OBAMA, Frank, and Schumer.) The reform act is blocked by Democrats, led by Dodd and Frank and the act never mae it out of committee.
None of the politicians millions of dollars in payments from Fanny Mae was returned, NOT ONE THIN DIME of this money, tainted by fraud.
2008 and guess what! Fannie Mae & Freddie Mac go bankrupt and the government, under Democratic rule in House and Senate takes the failed GSEs 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 of their hard-earned dollars to BAIL THE DEMOCRACK LEAD CONGRESS OUT!!!
Senator John McCain favors revising regulations & loan standards, selling off Fannie & Freddie.
Democrat senator Chris Dodd, the chairman of the Senate Banking Committee and a leading architect of the bill, said he understood people wanted to "stick a finger in the eye of the bankers and tycoons" (wonder if he considers his eyes as targets for those fingers!). But he also said (glibly, that) the crisis, if not tackled, would soon cause college loans, car loans, home mortgages and small business finance to dry up, bringing economic catastrophe to ordinary Americans. (Won't bother him or Obama, they are now millionaires, thanks to Fanny Mae and Freddy Mac).
And Senator B. Hussein Obama (presumed President-elect) is still wondering why his bank-account is not getting those regular deposits from Fanny Mae and Freddy Mac.
Primary Source: Prof. Dennis Jantz, 2008, Power-Point presentation.
secondary 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
Various internet sites
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