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When Government Invites Corruption
IBD Editorials ^ | July 22, 2010 | Investors Business Daily staff

Posted on 07/22/2010 5:59:50 PM PDT by Kaslin

Ethics: A probe by Rep. Darrell Issa has now uncovered 173 sweetheart loans made by Countrywide Financial Corp. to 42 Fannie Mae and Freddie Mac executives. As is too often the case, it's a regulatory problem.

Of the 173 loans, 150 were made to borrowers who identified themselves as employees of Fannie Mae. Loan recipients from the institution include Jamie Gorelick, a former vice chair of Fannie Mae; James Johnson, former chairman and CEO of Fannie Mae; Daniel Mudd, a former Fannie Mae president and CEO; and Franklin Raines, former Fannie Mae chairman and CEO.

Issa, ranking member of the Oversight and Government Reform Committee, believes the Countrywide loans made to Fannie Mae employees are incidents of "preferential treatment to individuals positioned to advance the company's interest."

"New documents obtained by the committee show that Countrywide targeted employees of Fannie Mae to develop and protect a strategic relationship with the former government-sponsored enterprise," Issa said in a letter to the general counsel of the Federal Housing Finance Agency.

So far, Issa has identified two spikes in Countrywide VIP loans to borrowers at Fannie Mae. The second hit in 2001-2003, "on the leading edge" of the 2002-2004 mortgage boom.

Of greater concern is the spike of 1998. Countrywide loan activity to Fannie Mae executives sharply increased the year before "Countrywide reached an exclusive agreement to sell Fannie Mae billions of dollars in mortgages at a discounted rate." Issa said the arrangement was made so Fannie Mae could lock rival Freddie Mac out of the market for Countrywide loans.


(Excerpt) Read more at investors.com ...


TOPICS: Crime/Corruption; Editorial; Government
KEYWORDS: banking; barneyfrank; chrisdodd; darrellissa; fanniemae; financeregulation; freddiemac

1 posted on 07/22/2010 5:59:52 PM PDT by Kaslin
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To: Kaslin

Corruption is inevitable if the Constitution is ignored....that was the whole point of penning it.


2 posted on 07/22/2010 6:03:50 PM PDT by gorush (History repeats itself because human nature is static)
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To: Kaslin

Any of that Graft make its way to Bawney or Dodd?

Pray for America


3 posted on 07/22/2010 6:12:12 PM PDT by bray (Did Rush say Absolute Failure?)
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To: Kaslin

When a real Attorney General takes office I hope he can spell RICO. The Democrats are a RICO case waiting to happen.


4 posted on 07/22/2010 6:19:09 PM PDT by Steamburg (The contents of your wallet is the only language Politicians understand.)
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To: bray
Time line, time line, I do recall several members of the republican party received the same type loans including the lead republican attorney on the over sight committee.
5 posted on 07/22/2010 6:20:27 PM PDT by org.whodat
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To: org.whodat
I do recall several members of the republican party received the same type loans including the lead republican attorney on the over sight committee.

I hope they'll be good company for the Democrats in the federal penitentiary.

Maybe they can get up a weekly game of basketball during exercise period, R's vs. D's.

6 posted on 07/22/2010 6:30:08 PM PDT by seowulf ("If you write a whole line of zeroes, it's still---nothing"...Kira Alexandrovna Argounova)
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To: Kaslin
When Government Invites Corruption.

It is more likely that Government, not only invites corruption, but probably invented corruption.

7 posted on 07/22/2010 6:49:57 PM PDT by WesternPacific (Deafness has its Advantages)
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To: seowulf

http://online.wsj.com/article/SB121279970984353933.html?loc=interstitialskip


8 posted on 07/22/2010 6:58:21 PM PDT by org.whodat
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To: Steamburg
“When a real Attorney General takes office I hope he can spell RICO.”

You are “Waiting for Godot”.

Note that all these sweetheart loans occurred prior to & during the Bush Admin., yet the Bush Justice Dept. did nothing. Charlie Rangel was cheating on his taxes long before Obama came along. The list is long & growing.

Justice has become so politicized that pols & bureaucrats of both parties are almost exempt from the law.

9 posted on 07/22/2010 7:09:08 PM PDT by Mister Da (The mark of a wise man is not what he knows, but what he knows he doesn't know!)
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To: abb
Sweetheart deal for Jamie...

"Loan recipients from the institution include Jamie Gorelick, a former vice chair of Fannie Mae;"

10 posted on 07/22/2010 7:15:01 PM PDT by Ken H
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To: Kaslin

What about the repayment of such loans, what do those records show?


11 posted on 07/22/2010 7:24:51 PM PDT by drypowder
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To: gorush
Corruption is inevitable if the Constitution is ignored....that was the whole point of penning it.

Quite true. It is inevitable in foreign policy as well, especially if we maintain an extended governmental foreign empire and military establishment. That's one of the reasons why the founders were so suspicious of standing armies and entanglements.

12 posted on 07/22/2010 7:30:31 PM PDT by Captain Kirk
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To: Kaslin

ping


13 posted on 07/22/2010 8:24:44 PM PDT by vetvetdoug
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To: WesternPacific
Of course government is corrupt. Just look at the Gov't unions in CA. High taxes, $22bn in the hole and an underground economy of $120bn a year.

No illegal alien is stupid enough to become a citizen. Then they will pay taxes.

14 posted on 07/23/2010 9:11:12 AM PDT by BobS
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To: SunkenCiv; mnehring; SeekAndFind
Last week, we noted that Issa's probe found Countrywide had made 30 sweetheart loans to U.S. senators and their employees. Issa's latest discovery makes the lender, now owned by Bank Of America, look like a serial offender, and it will no doubt set off more demands for greater regulation.
15 posted on 07/23/2010 11:52:00 AM PDT by La Enchiladita (with love, from me, to you)
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To: org.whodat; All

More info here on Issa’s investigation into the “VIP loan program,” in the form of a letter sent to Senate Select Committee on Ethics: http://online.wsj.com/article/SB10001424052748704746804575367402389009686.html

(quote)

In his letter dated July 13, Mr. Issa wrote that on seven loans not tied to Mr. Bennett’s office, the borrowers listed their place of employment as “U.S. Senator.” Another 11 listed the “U.S. Senate.”

(end quote)


16 posted on 07/23/2010 11:57:39 AM PDT by La Enchiladita (with love, from me, to you)
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