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Posts Tagged ‘Bailout

Former Fannie Mae, Freddie Mac Executives Ignored Warnings

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(AP – Tuesday, December 09, 2008)

WASHINGTON–Top executives at mortgage finance companies Fannie Mae and Freddie Mac ignored warnings that they were taking on too many risky loans long before the housing market plunged, according to documents released Tuesday by a House committee.

E-mails and other internal documents released by the House Oversight and Government Reform Committee show that former Fannie CEO Daniel Mudd and former Freddie Mac CEO Richard Syron disregarded recommendations that they stay away from riskier types of loans.

“Their own risk managers raised warning after warning about the dangers of investing heavily in the subprime and alternative mortgage market. But these warnings were ignored” by the two chief executives, said Rep. Henry Waxman, D-Calif., the committee’s chairman. “Their irresponsible decisions are now costing the taxpayers billions of dollars.”

The two companies were seized by government regulators in September. A month later, Freddie Mac asked for an injection of $13.8 billion in government aid after posting a massive quarterly loss. Fannie Mae has yet to request any government aid but has warned it may need to do so soon.

Lawmakers questioned Mudd about an internal Fannie Mae presentation from June 2005 that showed the company at a “strategic crossroads,” at which it could either delve into riskier loans or focus on more secure ones.

Questioned about the presentation, Mudd defended his company’s effort to compete against Wall Street banks that were pouring money into subprime and other exotic loans.

“We couldn’t afford to make the bet that the changes were not going to be permanent,” Mudd said.

Mudd and three other former executives of the two companies defended their stewardship in a hearing held by the House committee.

“It’s important to remember that Freddie and its sister institution, Fannie Mae, did not create the subprime market,” said Richard Syron, Freddie Mac’s former CEO.

But Rep. Darrell Issa, R. Calif., blasted Syron and Mudd, along with former Fannie Mae CEO Franklin Raines, and former Freddie Mac CEO Leland Brendsel.

“All four of you seem to be in complete denial that Freddie and Fannie are in any way responsible for this. Your whole excuse for going to risky and unreasonable loans that are defaulting at an incredibly high rate is that everyone is doing it. If we don’t do it, we’ll be left out.”

Fannie and Freddie own or guarantee around half the $11.5 trillion in U.S. outstanding home loan debt. The two companies are the engines behind a complex process of buying, bundling and selling mortgages as investments.

They traditionally backed the safest loans, 30-year fixed rate mortgages that required a down payment of at least 20 percent. But in recent years, they lowered their standards, matching a decline fueled by Wall Street banks that backed the now-defunct subprime lending industry.

Republicans blame Fannie and Freddie, and homeownership policies of the Clinton administration for sowing the seeds of the financial meltdown. Democrats defend the companies’ role in encouraging homeownership and stress that Wall Street banks — not Fannie and Freddie — led the dramatic decline in lending standards.

For years the two companies flexed their lobbying muscle in Washington to thwart efforts to impose tighter regulation.

Internal Freddie Mac budget records obtained by The Associated Press show $11.7 million was paid to 52 outside lobbyists and consultants in 2006. Power brokers such as former House Speaker Newt Gingrich and former Sen. Alfonse D’Amato of New York were recruited with six-figure contracts.

The more difficult questions, however, will come next year, when lawmakers weigh what role, if any, the two companies play should play in the mortgage market.

Options include taking the companies private, morphing them into a public utility or a federal agency, or leaving them as government-sponsored entities that have private shareholders and profits, with tougher regulations.

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We’ve been at this bailout thing for a long time

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Apparently, America is so rich we don’t know what to do with it.

$11 Billion to $22 billion is spent on welfare to illegal aliens each year by state governments.
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$2.2 Billion dollars a year is spent on food assistance programs such as food stamps, WIC, and free school lunches for illegal aliens.
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$2.5 Billion dollars a year is spent on Medicaid for illegal aliens.
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$12 Billion dollars a year is spent on primary and secondary school education for children here illegally and they cannot speak a word of English!
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$17 Billion dollars a year is spent for education for the  American-born children of illegal aliens, known as anchor babies.
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$3 Million Dollars a DAY is spent to incarcerate illegal aliens.
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30% percent of all Federal Prison inmates are illegal aliens.
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$90 Billion Dollars a year is spent on illegal aliens for Welfare & social services by the American taxpayers.
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$200 Billion Dollars a year in suppressed American wages are caused by the illegal aliens.
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The illegal aliens in the United States have a crime rate that’s two and a half times that of white non-illegal aliens.  In particular,  their children, are going to make a huge additional crime problem in the US
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During the year of 2005 there were 4 to 10 MILLION illegal aliens that crossed our Southern Border also, as many as 19,500 illegal aliens from Terrorist Countries.  Millions of pounds of drugs, cocaine, meth, heroin and marijuana, crossed into the U. S from the Southern border.
Homeland Security Report:

The National Policy Institute, ‘estimated that the total cost of mass deportation would be between $206 and $230 billion or an average cost of  between $41 and $46 billion annually over a five year period.’
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In 2006 illegal aliens sent home $45 BILLION in remittances back to their countries of origin.
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‘The Dark Side of Illegal Immigration: Nearly One Million Sex Crimes Committed by Illegal Immigrants In The United States ..’
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The total cost is $ 338.3 BILLION DOLLARS A YEAR. In two years we could pay the Wall Street bailout!

Written by Ben

October 10, 2008 at 5:56 pm

Impeach Representative Barney Frank and Senator Chris Dodd

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Representative Barney Frank (D-MA) and Senator Chris Dodd (D-CT), the Chairs of the House and Senate committees, respectively, must resign their positions on these committees and impeachment proceedings against them must begin immediately.

Both Frank and Dodd have demonstrated their incompetency as the Chairs of these committees, engaging in economic policies which bring the U.S. closer to centrally planned economies such as Marxian economies.  Frank and Dodd are making decisions this country can literally not afford and threaten the world’s economies.

Our government must not be in the business of being in business and therefore must bring its involvement with the Government Sponsored Enterprises known as Fannie Mae and Freddie Mac to an immediate end.

Socialism has no future in the United States, unless of course, you vote for Barack Obama.

Read about the meltdown time line here.

Barney Frank screws Director at Fannie Mae, then the rest of us.

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…  an alternate title might be …

Barney Frank and boyfriend Herb Moses, executive at Fanne Mae, are just the tip of the iceberg of a larger underlying problem.

From this article we learn that Representative Barney Frank, (D-Mass.) who is a homosexual (the term “Gay” is subversion to make the behavior palletable to the rest of us) had a boyfriend who worked at Fannie Mae. If his boyfriend, Herb Moses, worked in the mail-room that relationship might be overlooked, but Frank’s boyfriend was Director of Housing Initiatives at Fannie Mae from 1991 to 1998, when Frank was on the House Banking Committee, which had jurisdiction over Fannie Mae.

The article states

Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical.

“It’s absolutely a conflict,” said Dan Gainor, vice president of the Business & Media Institute. “He was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive. How is that not germane?

“If this had been his ex-wife and he was Republican, I would bet every penny I have – or at least what’s not in the stock market – that this would be considered germane,” added Gainor, a T. Boone Pickens Fellow. “But everybody wants to avoid it because he’s gay. It’s the quintessential double standard.”

Now, we have a lot of things to be angry about. If you’re fuming and can’t think straight right now, I’ll highlight them for you, since I’ve had a little time to stop the bleeding from my eyeballs.

  1. There is Barney Frank himself just because he is the way he is.
  2. There is his behavior while he is being himself.
  3. There is his lack of scruples and ethics (covered that, I know), engaging in questionable behavior with the head of a government body he and his committee preside over.
  4. There is the media, all too willing to give Democrats a pass while those Democrats screw heads of Fannie Mae and by extension, the rest of us.

For those who are now regaining their normal blood pressure and the tunnel vision fades away, you might have a few questions.   Some of them might even be among the following list.

  1. Does anyone see a problem with our media?
  2. Is the media blind?
  3. Is the media – ABC, CBS, CNN, MSNBC, NBC, New York Times, Washington Post, San Francisco Chronicle, Public Broadcasting System et. al. – so busy advancing the agenda of the Democrat Party and its socialist leaning value systems that the media in the U.S. are incapable of showing America how these socialist policies – some of which are represented by the very existance of Fannie Mae and Freddie Mac – are a failure to the people and the country as a whole?
  4. Is the media in bed with the Democrat Party?
  5. Does the Democrat Party also have influence over the media just as they have over Fannie Mae and Freddie Mac?

Think about this the next time you’re waiting in line at the check-out counter at the grocery store as you ponder the cover of the National Inquirer.  Think about the pablum the media wants to feed us. Think about who is directing our (voting public) attention.

Better yet, just think.

Then go vote every one of those sons of bitches out of office this November.  If we do not do this, we deserve what we get, just as we have been getting for decades.  Send a ripple through the psyche of America in the process, too.

Just do it.

How Did Your Senators Vote?

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TOTAL: Yea: 74
Nay: 25
NAME VOTE VOTE
Akaka (D-HI) Y
Alexander (R-TN) Y
Allard (R-CO) N
Barrasso (R-WY) N
Baucus (D-MT) Y
Bayh (D-IN) Y
Bennett (R-UT) Y
Biden (D-DE) Y
Bingaman (D-NM) Y
Bond (R-MO) Y
Boxer (D-CA) Y
Brown (D-OH) Y
Brownback (R-KS) N
Bunning (R-KY) N
Burr (R-NC) Y
Byrd (D-WV) Y
Cantwell (D-WA) N
Cardin (D-MD) Y
Carper (D-DE) Y
Casey (D-PA) Y
Chambliss (R-GA) Y
Clinton (D-NY) Y
Coburn (R-OK) Y
Cochran (R-MS) N
Coleman (R-MN) Y
Collins (R-ME) Y
Conrad (D-ND) Y
Corker (R-TN) Y
Cornyn (R-TX) Y
Craig (R-ID) Y
Crapo (R-ID) N
DeMint (R-SC) N
Dodd (D-CT) Y
Dole (R-NC) N
Domenici (R-NM) Y
Dorgan (D-ND) N
Durbin (D-IL) Y
Ensign (R-NV) Y
Enzi (R-WY) N
Feingold (D-WI) N
Feinstein (D-CA) Y
Graham (R-SC) Y
Grassley (R-IA) Y
Gregg (R-NH) Y
Hagel (R-NE) Y
Harkin (D-IA) Y
Hatch (R-UT) Y
Hutchison (R-TX) Y
Inhofe (R-OK) N
Inouye (D-HI) Y
Isakson (R-GA) Y
Johnson (D-SD) N
Kennedy (D-MA)
Kerry (D-MA) Y
Klobuchar (D-MN) Y
Kohl (D-WI) Y
Kyl (R-AZ) Y
Landrieu (D-LA) N
Lautenberg (D-NJ) Y
Leahy (D-VT) Y
Levin (D-MI) Y
Lieberman (ID-CT) Y
Lincoln (D-AR) Y
Lugar (R-IN) Y
Martinez (R-FL) Y
McCain (R-AZ) Y
McCaskill (D-MO) Y
McConnell (R-KY) Y
Menendez (D-NJ) Y
Mikulski (D-MD) Y
Murkowski (R-AK) Y
Murray (D-WA) Y
Nelson (D-FL) Y
Nelson (D-NE) N
Obama (D-IL) Y
Pryor (D-AR) Y
Reed (D-RI) Y
Reid (D-NV) Y
Roberts (R-KS) N
Rockefeller (D-WV) Y
Salazar (D-CO) Y
Sanders (I-VT) N
Schumer (D-NY) Y
Sessions (R-AL) N
Shelby (R-AL) N
Smith (R-OR) Y
Snowe (R-ME) Y
Specter (R-PA) Y
Stabenow (D-MI) N
Stevens (R-AK) Y
Sununu (R-NH) Y
Tester (D-MT) N
Thune (R-SD) Y
Vitter (R-LA) N
Voinovich (R-OH) Y
Warner (R-VA) Y
Webb (D-VA) Y
Whitehouse (D-RI) Y
Wicker (R-MS) N
Wyden (D-OR) N

Written by Ben

October 1, 2008 at 10:40 pm