Posted on 12/16/2011 11:12:38 AM PST by Ernest_at_the_Beach
SAN FRANCISCO (MarketWatch) — The Securities and Exchange Commission on Friday accused six former executives at government-backed mortgage giants Fannie Mae and Freddie Mac with securities fraud for their role in understating subprime loan exposure.
The SEC alleges they “knew and approved of misleading statements” that claimed the companies had minimal exposure to higher-risk mortgage loans, including subprime loans, at the height of the home mortgage bubble.
In separate civil lawsuits against both Fannie /quotes/zigman/226360 FNMA -0.40%
and Freddie /quotes/zigman/226335 FMCC +0.50%
, the SEC claims the former executives caused the government-sponsored enterprises to misstate their holdings of subprime mortgage loans in periodic securities filings, public statements, investor calls and media interviews.
(Excerpt) Read more at marketwatch.com ...
I’m sure these were highly qualified people dealing with a thousand things at once ...
Barney Frank and Chris Dodd next?
Lemme know when they get to James Johnson, Jamie Gorelick, and Rahm Emanuel (I won’t hold my breath).
"On March 25, 2002, Business Week interviewed Gorelick about the health of Fannie Mae. Gorelick is quoted as saying, "We believe we are managed safely. We are very pleased that Moody's gave us an A-minus in the area of bank financial strength – without a reference to the government in any way. Fannie Mae is among the handful of top-quality institutions."[9] One year later, Government Regulators "accused Fannie Mae of improper accounting to the tune of $9 billion in unrecorded losses".[10]
In an additional scandal concerning falsified financial transactions that helped the company meet earnings targets for 1998, a "manipulation" that triggered multimillion-dollar bonuses for top executives,[11] Gorelick received $779,625.
Investigation by the OFHEO detailed in their official report on the accounting scandal in 2006 on page 66 that from 1998 to 2002 Gorelick received a total of $26,466,834.00 in income."
Civil lawsuits? Should be criminal lawsuits!!!
Please tell me that Jamie Gorelick is among them??
Until Franklin Raines (one of Barry’s bosom buddies, like Eric Holder) is in shackles and the millions he fleeced from taxpayers clawed back, there will be no justice.
Franklin not Harold Raines, sorry, first mistake since the summer of 1942.
At least we now know why Barney Fwank is not running again!
I went to his house, in a gated retirement community, to write an estimate.
He is about the biggest *$$hole I've ever met. He made me wait for him, was very demanding and rude. He made sure I knew how what a big man hew was. He was a Dr, if I remember right, and knew important people.
I did chat a little with him as I recognized is last name and he confirmed his daughter Jamie Gorelick. The Schmucks
Why hasn’t Newt been charged?
Was Barney’s manwife on the list?
Waiting for the general election?
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