1997:
·
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!!!
·
President Clinton loosens Home Loan Requirements.
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.
·
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.
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 Four Recipients:
- Sen.
Christopher Dodd, (D-CT) Chairman of the Banking, Housing, & Urban
Affairs Committee
- Sen. Barack
Obama, (D-IL) Federal Financial Management Committee
- Sen. Chuck
Schumer, (D-NY) Chairman of the Finance Committee
- 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 keep 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
McCain said, 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 Four 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 goes bankrupt and the Govt.
takes them over COMPLETELY.
·
Lehman Brothers goes bankrupt from investing in bad
mortgages.
·
AIG gets $85 billion 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 Govt. 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, 9/16-17/08
Herald Tribune, 4/18/08
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