Skip to comments.When Government Invites Corruption
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 ...
Corruption is inevitable if the Constitution is ignored....that was the whole point of penning it.
Any of that Graft make its way to Bawney or Dodd?
Pray for America
When a real Attorney General takes office I hope he can spell RICO. The Democrats are a RICO case waiting to happen.
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.
It is more likely that Government, not only invites corruption, but probably invented corruption.
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.
"Loan recipients from the institution include Jamie Gorelick, a former vice chair of Fannie Mae;"
What about the repayment of such loans, what do those records show?
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.
No illegal alien is stupid enough to become a citizen. Then they will pay taxes.
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
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.”