Posted on 12/16/2011 1:19:10 PM PST by Doogle
WASHINGTON -- The Securities and Exchange Commission has brought civil fraud charges against six former top executives at Fannie Mae and Freddie Mac, saying they misled the government and taxpayers about risky subprime mortgages the mortgage giants held during the housing bust.
Those charged include the agencies' two former CEOs, Fannie's Daniel Mudd and Freddie's Richard Syron. They are the highest-profile individuals to be charged in connection with the 2008 financial crisis.
Mudd, 53, and Syron, 68, led the mortgage giants when the housing bubble burst in late 2006 and 2007. The four other top executives also worked for the companies during that time.
The case was filed in federal court in New York City.
In a statement released through his attorney, Mudd said the lawsuit "should never have been brought" and said the government reviewed and approved all of the company's financial disclosures.
(Excerpt) Read more at foxnews.com ...
TS
Weren’t Clinton cronies Jaime Gorelik and Franklin Raines part of this mess as well?
...oh yeah, the Mistress of Disaster was in the middle of it all, making millions
I sure wish somebody had the authority and the nads to go after the Fast & Furious bunch too.
Hopefully this is just the beginning and depositions, investigations and maybe plea bargaining will lead to a good hard look at the real culprits; Franklin Raines, James Johnson and Jamie Gorelick who not only caused considerable disaster, but looted the place to pad their own pockets to the tune of almost $150 Million.
If Obma wanted to be real popular with the American people, in the first year he needed to do three things, stabilize the financial meltdown (unfortunately TARP and GM/Chrysler bailout was needed to do that to stem panic and adding 1 million to unemployment), two help businesses free up cash (less regs and less taxes) so they can pay down debt and employ people, and finally go after the Wall Street and gov officials responsible for the mortgage fraud and reckless behavior that caused the meltdown. Obama did the first because Wall Street bankers applied pressure and the unions applied pressure, but he made the second worst with more taxes and gov programs and finally hesitated to go after Wall Street and gov officials because he needed them for donations and under advisement from Treasury not to demoralize the banking industry with prosecutions in order to get their help to resolve the crisis. In the end we had higher unemployment and one hell of a pissed off public as the truth to the crisis unfolds.
Or Jamie Gorelick.
Franklin Raines is not among the fall guys, of course. That would be too close to you-know-who.
..personally, I think Gorelick was a funnel for Clinton, he had his mitts on everything that evolved $$$$$
” civil fraud charges “
CIVIL??? That means, what, a slap on the wrist and a small fine??
Question - does this preclude criminal fraud charges in the future??
8:}
The United States Justice Department, Janet Reno, Bwany Fwank, Barack Obama, and the courts colluded to force lending institutions to make bad loans.
Fannie May and Freddie Mac didn’t have a choice here. They and banks and other lending institutions were forced to grant these non-repayable loans.
When court convictions started coming down, the industry was forced to stop red-lining, stop enforcing old lending guidelines, stop protecting the liquidity of their institutions.
The idea that these top executives somehow conspired to defraud folks is outlandish, pure evil. Here’s why.
When the government forced these institutions to grant mortgage loans to people who couldn’t pay them back, they were in effect saying that those loans were as justified as any other. Judges agreed. They said that the lending institutions were not being fair. They said there had been prior racial and economic bias, they were putting an end to.
Once these lending institutions had made loans they knew couldn’t be paid back, they bundled the paper and sold it to other entities. They sold this paper, just like they had the paper covering sound loans before.
The government stated there were no valid grounds to deny these loans. They made this finding.
Now they’re trying to say these executive should have known they were bad loans.
This would be comical, if it didn’t involve what verges on or actually goes over the line of Executive, Legislative, Judicial branch, and private sector criminality.
There was no justification whatsoever for making the case these lending institutions were acting in bad faith by not making the loans before. There is no justification now for claiming they were acting in bad faith by extending those loans. And if an institution is forced to make a certain type of loan over their objections, it’s insane for the government to state those who sold the paper to others, was acting in a criminal manner.
If they want to prosecute someone, they should round up the Executive Branch, Legislative Branch, Judicial Branch co-conspirators and their private sector comrades. Then prosecute away to their hearts content.
It is shameful what they are trying to do to these executives. This borders right up against gulag level activity here.
Yes, but you can’t expect leftist icons to be arrested
“...Yes, but you can’t expect leftist icons to be arrested...”
Of course not. That would be “racist” and bigotry. /s
Looks like Franklin Raines gets another affirmative action E-ticket....
That’s exactly what I as going to ask.
Does this mean the details of Gingrich’s “lobbying/history lessons” at Fannie Mae will be exposed?
Is it really that difficult for some people to distinguish the difference between paid for business consultation and being a paid lobbyist? People see and hear only what they want too! People in this country have simply lost their ability to think for themselves; therefore, they just follow the lastest talking points.
They will be able to afford the best lawyer that money can buy with the huge bonuses that Freddie and Fannie gave them
What the hell about Raines? What about Barney Frank?
Call me when the SEC gets serious.
Ok,
Does this mean the details of Gingrich’s “consultation/history lessons” with Fannie Mae be exposed? I’d like to know the details.
HUMMMM
You have a point, wonder if the only thing that comes out of this is info,docs,e-mails,faxes, whispers at the water cooler about Newt.
HUMMMMM
Or maybe they are trying to get ahead of the “revised” Housing data, that will show what Americans already knew. It was much worse than the msm and Feds led everyone to believe.
Let me know when (as if!) they get around to charging Senator Dodd, Representative Barney Frank, Franklin Raines, James Johnson, and Jaime Gorlick - all the real masters of this disaster. Fat chance from this One World Socialist crew.
Still waiting on Cuomo to get indited....
Did Barney’s former boyfriend get nailed?
Also, I don’t see Franklin Raines listed - Fannie had to restate its reserve by $9 Billion as a result of his activities as Chairmen and CEO - also he got a golden parachute worth $240 million, returning only $50 million as an outcome of an investigation into misleading financial statements. So, $190 million needs to be collected from him, right?
Although, I would imagine that Obama now has some of the Raines parachute funds for the 2012 run.
But, as I read read the charges, it sounds to me like they will just get a slap on the wrist. When oh when are we going to start locking up these criminals?
You are SO RIGHT. They took away millions.
Now we know why Bwaney’s running for cover!
Gingrich paid by Freddie Mac. Fannie Mae’s my headache.
That’s fine, but Barney “Butt-Lovers Popcorn” Frank should be first in this line.
Watch for this to be rammed through before the new republican AG is there to offer plea deals
Who would be hurt right now by a huge Fanny and Freddie scandal? Newt. They're scared to death of Newt (both dems and Rinos). They're going to try to pin this somehow to Newt.
To prove this point, once Newt is taken down by it - it will disappear, just like the Cain bimbos.
Democrats and RINOs both want Romney. They'll work together to make sure he gets the nod, no matter what it takes.
YES!!!!
Now - to prove they did it. Charged is one thing; convicted is another...
Don’t kid yourself that Fannie and Freddie were just innocently forced to do what they were made to do. Fannie Mae under James Johnson had regulations made just for them, the lobbying he did to grow the company was astounding. I wouldn’t be surprised if 90 percent of the blame for the housing debacle couldn’t laid at his feet.
Congress didn’t “force” them to loan money to losers, except in the sense that they lobbied Congress to “force” them.
You really need to read a book about this, it’s fascinating and eye opening how this all happened. Sort of a perfect storm of greed. “Reckless Endangerment” is a good one and there are others.
Merry Christmas to you and yours! W & BJ
These bankers need to be hung from the rafters and these GSE individuals are not the last of the lot. There are plenty more where they came from on Wall St that need to be held criminally accountable and to face capitol punishment for the immense depth of their crimes. There is no excuse that will cover for their corruption and theft of money from others.
Interesting you mention home sales. A few days ago, the National Real Estate Board, or some thing close to it said they overestimated home sales. i.e It appears they were trying prime the pump with false information.
So, I agree, soon we will find out how bad the housing market has actually been.
Civil only, no criminal charges. It’s political cover for Obama who’s in bed with these guys.
They’ll settle for some cash and get to keep the rest.
Was Newt an employee of Fannie & Freddie, or was he paid a consulation fee. Has Newt done something criminal? If so, he should be charged and tried. If not, it’s a non-issue. His problem is not what he did, but the spin his opponents are putting on it. If Fannie & Freddie called you and offered you a million dollars few several hours of consultation — would you not take it? And what would be wrong with that? In America, we call it Capitalism. Of course, many don’t believe in Capitalism anymore.
Was Newt an employee of Fannie & Freddie, or was he paid a consulation fee. Has Newt done something criminal? If so, he should be charged and tried. If not, it’s a non-issue. His problem is not what he did, but the spin his opponents are putting on it. If Fannie & Freddie called you and offered you a million dollars few several hours of consultation — would you not take it? And what would be wrong with that? In America, we call it Capitalism. Of course, many don’t believe in Capitalism anymore.
Was Newt an employee of Fannie & Freddie, or was he paid a consulation fee. Has Newt done something criminal? If so, he should be charged and tried. If not, it’s a non-issue. His problem is not what he did, but the spin his opponents are putting on it. If Fannie & Freddie called you and offered you a million dollars few several hours of consultation — would you not take it? And what would be wrong with that? In America, we call it Capitalism. Of course, many don’t believe in Capitalism anymore.
They’ll settle for some cash and get to keep the rest.
The SEC does not have the authority to bring criminal charges.
I have never believe the Govs figures. They have been blowing smoke you know where to keep the sheeple from knowing just how bad everything really is.
Now they are going to throw a couple of guys under the bus to keep the sheeple from thinking TO MUCH about the Frank,Dodd,Fannie and Freddie etc etc disaster that brought the whole country to a stand still.
When the Repubs get control in 2012, I personally would like to see a full blow Special Prosecutor and Lawyers from around the Country to go after every single POLITICIAN that started this mess. Maybe a go ole RICO type investigation. Especially since they have circle the wagons to protect each other.
"The SEC is wrong, and I look forward to a court where fairness and reason -- not politics -- is the standard for justice." [Bold is mine].
Good luck with that one.
why hasn’t Newt been charged?
Nothing wrong with using one’s inside the beltway connections to make a buck or two. I just want to know what he did to earn it.
Do u know exactly what he did to earn it?
It may be a non-issue to you, but to many, it is an issue.
At least we know how he paid for his Tiffany Diamonds.
You should know better. The GOP will not lift a finger in investigating this criminal activity.
They will leave it out there hanging and use it as a “campaign issue”,
not actually make anyone responsible.
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