Skip to comments.[CA] sues for answers from Fannie Mae, Freddie Mac on housing meltdown
Posted on 12/21/2011 1:08:11 AM PST by Cincinatus' Wife
California Atty. Gen. Kamala D. Harris is suing Fannie Mae and Freddie Mac to force the mortgage giants to answer questions about their role in California's housing meltdown.
In two suits filed Tuesday in San Francisco County Superior Court, Harris seeks to compel the companies to respond to subpoenas from her office that have been ignored so far. Harris is seeking information about the practices by Fannie and Freddie in California as part of her ongoing investigation into the mortgage industry.
The suits ask a judge to order the two companies to answer a set of 51 questions served in November to each government-controlled company. The firms have refused to answer the questions, the suits allege, because the federal agency that oversees them says federal law preempts the state from issuing subpoenas to the two companies.
The requests from Harris' office include questions over whether California homes owned by Fannie and Freddie are dens of drug-dealing and prostitution, and seek details about the companies' roles in issuing, selling, sponsoring and marketing mortgage-backed securities to state agencies.
"Many of those securities are now virtually worthless, and there have been serious accusations of fraud in connection with them," Harris alleges in her suits. The suits also argue that "the mortgage and foreclosure crisis has had a devastating impact on the people of California."
(Excerpt) Read more at latimes.com ...
a Rat state is asking why a major mortgage funder why it ran into problems when it did exactly what Rats wanted?
It isn’t the only one.
Sue Bawney Fwank, Sue yourself Ca.
Yall created this mess.
The state of Ca was first on board with this BS.
This legislator may be for real, but it is to late for CA.
What is sad is that these law suits are spending the peoples money.
We know what happened.
The Ca legislature wholly approved and pushed Freddie, Fannie and section 8.
Didn’t California read the latest report on TARP? It’s a huge success, taxpayers are making money hand over fist. Might even recover those losses from bailing out AIG eventually. Too bad the interest charged columns read zeroes.
Oh, so they excluded the GSE bailouts as minor aberrations when it comes to return on investments just because they made the taxpayers buy bad paper mortgages multiplied by derivative losses during a real estate collapse, doesn’t mean States should sue for negligence or fraud.
If California and other States’ employee funds wait about 30 years, the RE investments might payoff.
If not, maybe after the Volt includes an on-board fire suppression system, States can buy into that taxpayer owned GSE and make some money back. Fleet sales is where it’s at.
They know went wrong.
Broke states going after any money they can get their hands on. This is the same as suing Amazon, et.al for taxes. North Carolina and every other broke state needs more of your money and they intend to get it.
Exactly. The fact is that in yet another attempt at social engineering by the left, a huge number of honest hard-working American citizens have suffered significant financial losses. Retirement savings have been reduced or lost for many, financial security decimated, home equity destroyed, and nothing accomplished. I guess the one thing all of this did accomplish was more redistribution of wealth, and more dependence on government, which are after all major goals of the left.
Great thread. Thanks to all posters. After you’ve recovered money from these UNaccountable bureaucrats (socialists)...
DISMANTLE socialist (social engineering) collectives.
live - free - republic
CA sues for answers from Fannie Mae, Freddie Mac on housing meltdown.
LOL if they have to ask they wouldn’t understand the answer.
By Jeff Poor
Business & Media Institute, 9/24/2008
"Frank, who is openly gay, had a relationship with Herb Moses, an executive for the now-government controlled Fannie Mae. The column revealed the two had split up at the time but also said Frank was referring to Moses as his "spouse." Another Washington Post report said Frank called Moses his "lover" and that the two were "still friends" after the breakup.
Frank was and remains a stalwart defender of Fannie Mae, which is now under FBI investigation along with its sister organization Freddie Mac, American International Group Inc. (NYSE:AIG) and Lehman Brothers (NYSE:LEH) all recently participants in government bailouts. But Frank has derailed efforts to regulate the institution, as well as denying it posed any financial risk."
By Bill Sammon, October 03, 2008
WASHINGTON -- Unqualified home buyers were not the only ones who benefitted from Massachusetts Rep. Barney Franks efforts to deregulate Fannie Mae throughout the 1990s.
So did Franks partner, a Fannie Mae executive at the forefront of the agencys push to relax lending restrictions.
Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannies assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie.
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.
"Its 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 whats 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 hes gay. Its the quintessential double standard."
A top GOP House aide agreed.
"Cmon, he writes housing and banking laws and his boyfriend is a top exec at a firm that stands to gain from those laws?" the aide told FOX News. "No media ever takes note? Imagine what would happen if Franks political affiliation was R instead of D? Imagine what the media would say if [GOP former] Chairman [Mike] Oxleys wife or [GOP presidential nominee John] McCains wife was a top exec at Fannie for a decade while they wrote the nations housing and banking laws."
Franks office did not immediately respond to requests for comment.
Frank met Moses in 1987, the same year he became the first openly gay member of Congress.
"I am the only member of the congressional gay spouse caucus," Moses wrote in the Washington Post in 1991. "On Capitol Hill, Barney always introduces me as his lover."
The two lived together in a Washington home until they broke up in 1998, a few months after Moses ended his seven-year tenure at Fannie Mae, where he was the assistant director of product initiatives. According to National Mortgage News, Moses "helped develop many of Fannie Maes affordable housing and home improvement lending programs."
Critics say such programs led to the mortgage meltdown that prompted last months government takeover of Fannie Mae and its financial cousin, Freddie Mac. The giant firms are blamed for spreading bad mortgages throughout the private financial sector.
Although Frank now blames Republicans for the failure of Fannie and Freddie, he spent years blocking GOP lawmakers from imposing tougher regulations on the mortgage giants. In 1991, the year Moses was hired by Fannie, the Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for two- and three-family homes, even though they were defaulting at twice and five times the rate of single homes, respectively.
Three years later, President Clintons Department of Housing and Urban Development tried to impose a new regulation on Fannie, but was thwarted by Frank. Clinton now blames such Democrats for planting the seeds of todays economic crisis.
"I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently.
Bill Sammon is FOX News' Washington Deputy Managing Editor.
AP via Fox News ^ | November 03, 2011 | Associated Press
Government-controlled mortgage giant Freddie Mac has requested $6 billion in additional aid after posting a wider loss in the third quarter.
Freddie Mac said Thursday that it lost $4.4 billion, or $1.86 per share, in the July-September quarter. That compares with a loss of $4.1 billion, or $1.25 a share, in the same quarter of 2010.
This quarter's $6 billion request from taxpayers is the largest since April 2010.
(Excerpt) Read more at foxnews.com ...
Oh Herb! You big sack of crap!
Will the Volt become the new Trabant?
Not if I can help it!
Better yet, a rat state is suing the rat federal govt.
Guess how far that will go.
Freddie and fannie will just tell them, “Sucks to be you” and move on.
baraq and his party will protect F&F.
You already own 12% of the Volt via a government takeover. GM is now a GSE.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.