AP IMPACT: Mortgage firm arranged stealth campaign

Sponsor:
Sen. Charles Hagel [R-NE]
Cosponsors
Sen. Elizabeth Dole [R-NC]
Sen. John McCain [R-AZ]
Sen. John Sununu [R-NH]

Members of the Senate Committee on Banking, Housing, and Urban Affairs,
109th Congress Democrats:
• Paul S. Sarbanes (Md.), Ranking Member
• Christopher Dodd (Conn.)
• Tim Johnson (S.D.)
• Jack Reed (R.I.)
• Chuck Schumer (N.Y.)
• Evan Bayh (Ind.)
• Thomas R. Carper (Del.)
• Debbie Stabenow (Mich.)
• Robert Menendez (N.J.)

Republicans:
• Richard Shelby (Ala.), Chairman
• Robert Bennett (Utah)
• Wayne Allard (Colo.)
• Mike Enzi (Wyo.)
• Chuck Hagel (Neb.)
• Rick Santorum (Pa.)
• Jim Bunning (Ky.)
• Mike Crapo (Idaho)
• John E. Sununu (N.H.)
• Elizabeth Dole (N.C.)
• Mel Martinez (Fla.)

Congressional Record > Jan 26, 2005

Sen. Charles Hagel [R-NE]: [Introducing S. 190]

Mr. President, I rise today to introduce, along with my colleagues Senators SUNUNU and DOLE, the Federal Housing Enterprise Regulatory Reform Act of 2005. This is needed regulatory reform at a critical time for the Federal National Mortgage Association (Fannie Mae the Federal Home Loan Mortgage Corporation, Freddie Mac, and the Federal Home Loan Banks.

There is no doubt that our housing government sponsored enterprises GSEs, have been successful in carrying out their mission of providing liquidity for the housing market. The market has remained strong through tough economic times, and homeownership in this country is at an all-time high.

The housing GSEs, however, are uncommon institutions with a unique set of responsibilities and stakeholders. Fannie and Freddie are chartered by Congress, limited in scope, and are subject to Congressional mandates, yet they are publicly traded companies with all the earnings pressure that Wall Street demands. Additionally, Fannie and Freddie enjoy an implicit guarantee by the Federal Government that has aided them in developing substantial clout on Wall Street. With their influence in the markets, their ability to raise capital at near-Treasury bill rates, and their use of the most sophisticated portfolio management tools, Fannie and Freddie today are no longer simply secondary market facilitators for mortgages.

The significance of Fannie Mae and Freddie Mac to our economy cannot be overstated. Together, the companies own or guarantee roughly 45.6 percent of all mortgage loans in the United States. The companies combined have issued over $3.9 trillion in obligations comprised of $2.2 trillion in mortgage backed securities and $1.7 trillion of GSE debt.

It is clear that the recent revelations at both Freddie Mac and Fannie Mae precipitate the need for Congress to address GSE regulatory reform. In 2003, Freddie Mac found itself treading through a wave of accounting problems and questionable management actions. That led to an income restatement of $5 billion, a penalty of $125 million and the removal of several members of its executive management. One year later, a similar surge of questionable practices was discovered at Fannie Mae. That led to the retirement and resignation of two of Fannie Mae’s top management officials, as well as last month’s ruling by the Securities and Exchange Commission, SEC, that Fannie could face a $9 billion income restatement.

At a minimum, the bar for a GSE should not be held lower than it is for any other company. In fact, given its congressionally chartered mission to serve a public interest, the bar should be held significantly higher. The operations of such companies should be managed with uncompromising integrity and unabridged transparency.

Our legislation would create a new independent world class regulator for Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Our bill provides the new regulator with enhanced regulatory flexibility and enforcement tools like those afforded to the Federal Deposit Insurance Corporation, the Federal Reserve System, the Office of the Comptroller of the Currency and the Office of Thrift Supervision. Furthermore, the bill would:

Provide the new regulator the authority of receivership to close down a failing GSE and protect against a taxpayer bailout; provide the new regulator greater discretion in raising capital standards to protect against insolvency; provide the new regulator approval power over new programs and activities proposed by a GSE; provide the regulator with greater authority to limit exit compensation packages or golden parachutes for executives removed for cause; require the annual audits of Fannie Mae’s and Freddie Mac’s affordable housing programs to ensure that these programs support the enterprises’ affordable housing mission; end presidential appointments to the board of directors of Fannie Mae and Freddie Mac, and would require all Federal Home Loan Bank directors to be elected.

This reform is important to restoring and maintaining the confidence that investors and the markets require. In light of the recent problems at Freddie Mac and Fannie Mae, it is even more important. I urge my colleagues to support this reform effort and invite them to cosponsor our bill.

Friday, September 19, 2008
McCain’s Buddies Who Work For AIG, Fannie Mae, Freddie Mac
John McCain said Barack Obama has ties to Fannie Mae and Freddie Mac. LOL! LOL! Here is more from the Mother Jones article on McCain’s lobbyists/campaign staff members. See if you see a pattern: (I will highlight some items for closer scrutiny. By the way, this is only a partial list.)

Wayne Berman: American Council of Life Insurers, AIG, Americhoice, Shinsei Bank, Blackstone, Carlyle Group, Broidy Capital Management, Credit Suisse Securities, Highstar Capital, VISA, Ameriquest Mortgage, Fannie Mae, Freddie Mac, Fitch Ratings

Charlie Black: JP Morgan, Washington Mutual Bank, Freddie Mac, Mortgage Bankers Association of America, National Association of Mortgage Brokers

Kirk Blalock: Credit Union National Association, Financial Executives International, American Insurance Association, Mutual of Omaha, Zurich Financial Service Group, Fannie Mae, Federal Home Loan Bank of San Francisco

Carlos Bonilla: Financial Services Roundtable, Freddie Mac

Mark Buse: Freddie Mac, Goldman Sachs, Manufacturers Life Insurance Company

Nicholas Calio: Citigroup, Managed Fund Association, Fannie Mae, Merrill Lynch, The Investment Company Institute, TIAA-CRE, Securities Industry and Financial Markets Association

Alberto Cardenas: Fannie Mae

David Crane: Financial Services Roundtable, PriceWaterhouseCoopers, Deloitte & Touche, KPMG, Ernst & Young, Bank of America, Association of Corporate Credit Unions, Freddie Mac

Arthur Culvahouse: Fannie Mae

Alfonse D’Amato: AIG, Freddie Mac

Melissa Edwards: Freddie Mac, National Association of Real Estate Investment Trusts, Access to Capital Coalition

Benjamin Ginsberg: Massachusetts Mutual Life Insurance, AIG Technical Services

John Green: Laredo National Bank, Alternative Investment Management Association, AIG, Blackstone Group, Carlyle Group, Citigroup, Credit Suisse Group, Fannie Mae, Icahn Associates, FMR Corp., AFLAC, VISA

Kate Hull: Credit Union National Association, Fannie Mae, Federal Home Loan Bank of San Francisco, Zurich Financial Services, American Insurance Association, Financial Executives International

James Hyland: American Insurance Association, Seattle Home Loan Bank, Self Help Credit Union, National Association of Bankruptcy Trustees, Merrill Lynch, Mortgage Investors Corp., Federal Home Loan Bank of Indianapolis, Freddie Mac, New York Stock Exchange, Citigroup, VISA

Aleix Jarvis: Credit Union National Association, Fannie Mae, Federal Home Loan Bank of San Francisco, Financial Executives International, Mutual of Omaha, American Insurance Association, Zurich Financial Services

Thomas Loeffler: Citigroup, Fannie Mae, Investment Company Institute, World Savings and Loan Association, United Services Automobile Association (USAA)

Peter Madigan: Arthur Andersen, Bank of New York, Broadridge Securities Processing, Charles Schwab, Deloitte and Touche, Goldman Sachs, International Employee Stock Option Coalition, Mastercard, NYSE, Fannie Mae, Merrill Lynch, PNC Bank

Alison McSlarrow: Fannie Mae, Hartford

Susan Molinari: Freddie Mac, American Land Title Association, Association of Consumer Credit Unions, Beacon Capital Partners, College Loan Corp, Coventry First, E-Trade, Financial Services Roundtable, Rent-A-Center

John Napier: Freddie Mac

James Pitts: Advanced Association for Life Underwriting, AETNA, American Council of Life Insurers, AIG, Council of Insurance Agents and Brokers, Debt Advisory International, Financial Services Coordinating Council, GE Financial Assurance, Hartford Life, Jefferson Pilot Financial, Kenwood Investments, MassMutual, Mutual of Omaha, New York Life, UNUM Provident, VISA, PMI Group

Aquiles Suarez: Fannie Mae

Don Sundquist: Freddie Mac, The Hartford

William Timmons Sr.: American Council of Life Insurers, Citigroup, Dun & Bradstreet, Freddie Mac, Vanguard Group

Susan Nelson: AIG, San Antonio Credit Union

Do McCain’s lobbyists/campaign staff members really put country first? Are they steering McCain toward their clients?

# posted by ohio06win : Friday, September 19, 2008

Hey, you actually came up with some facts!

I think that Raines’ (major Obama advisor) CROOKED 90 million far outweighs the measley 15 grand a month that Rick Davis’s organization got.

And personally, I hold Jaime Gorlick’s abortion performed on the 911 commission against her just as much as the 26 million she got as a Director (did you know she had no background in finance?). Nice place to park as former Clinton Dpty Attney General.

And whaddya know, there’s a Chicago Daley connection -—hmmm do you suppose the messiah knew about that when he made him national campaign co-chair?

http://blogs.suntimes.com/sweet/2008/09/bill_daley_angry_at_john_mccai.html

Now, here’s your question... which corrupt pig politician greeted Republican attempts to reform Fannie Mae and Freddie Mac

http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63

with these words??

‘’These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,’’ said Representative ______________ of Massachusetts, the ranking Democrat on the Financial Services Committee. ‘’The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.’’

And I am sure that Obama appreciates your work to distract from his top money receipts from Fanny Mae and Freddie Mac. Well done Propagandist!!!!

Top Recipients of Fannie Mae and Freddie Mac
Campaign Contributions, 1989-2008

Name Office Party/State Total

1. Dodd, Christop S D-CT $133,900
2. Kerry, John S D-MA $111,000
3. Obama, Barack S D-IL $105,849

http://www.opensecrets.org/news/2008/07/top-senate-recipients-of-fanni.html

Several BIG DEMOCRATS and a Republican follow

The key to Fannie Mae’s survival was the patronage operation it ran. As Wall Street Journal reporter James R. Hagerty wrote two summers ago, “For years, high-level jobs at Fannie Mae were lucrative prizes for lawyers, bankers and political operatives waiting for their next U.S. government post.” Now that the jig is up, let’s meet some of the bipartisan warriors who fought for Fannie Mae’s right to plunder.

At the top of the list we must place Franklin D. Raines, chairman and chief executive officer of Fannie Mae from 1998 to 2004. Raines, who served as director of the Office of Management and Budget under President Clinton, had previously worked at Fannie Mae as vice chairman. Before that, he worked on the Clinton transition team following the 1992 election. Before that, he was a general partner at Lazard Freres & Co. Raines, as the Wall Street Journal reported, was forced to leave Fannie Mae in 2004, when regulators discovered it had broken accounting rules “in an effort to conceal fluctuations in profit and hadn’t maintained adequate risk controls.” The New York Times reported two year ago that regulators “have said that of the $90 million paid to Mr. Raines from 1998 to 2003 at least $52 million—more than half—was tied to bonus targets that were reached by manipulating accounting.” Raines agreed to a $24.7 million settlement with a federal regulator in exchange for charges being dropped, but he admitted no wrongdoing.

Next up is Jamie S. Gorelick, whose official résumé describes her as “one of the longest serving Deputy Attorneys General of the United States,” a position she held during the Clinton administration. Although Gorelick had no background in finance, she joined Fannie Mae in 1997 as vice chair and departed in 2003. For her trouble, Gorelick collected a staggering $26.4 million in total compensation, including bonuses. Federal investigators (PDF) would later say that “Fannie Mae’s management directed employees to manipulate accounting and earnings to trigger maximum bonuses for senior executives from 1998 to 2003.” The New York Times would call the manipulations an “$11 billion accounting scandal.” Gorelick, it should be noted, has never been charged with any wrongdoing.

Republicans also proved willing to serve Fannie Mae. Robert B. Zoellick, current head of the World Bank, has served President Reagan, President Bush 1, and President Bush 2 as a trade representative, deputy secretary of state, deputy secretary of the treasury, deputy chief of staff, and so on. Zoellick’s first Fannie Mae tour of duty was from 1983 to 1985, when he was a vice president. His second tour was 1993 to 1997, and his title was executive vice president in charge of lobbying, public affairs, and affordable housing. According to a July 23, 1997, report in the American Banker, Zoellick “has used his close ties to Republicans in Congress, such as Speaker of the House Newt Gingrich, R-Ga., to defend Fannie Mae from new taxes.”

John Buckley worked at Fannie Mae for almost 10 years (1991-2001) but took a leave of absence to serve as Bob Dole’s communications director during his 1996 run for the presidency. Before Fannie Mae, he worked at the National Republican Congressional Committee, served as press secretary to Rep. Jack Kemp, R-N.Y., deputy press secretary during the Reagan-Bush 1984 campaign, and press secretary to Lewis Lehrman when he ran for governor of New York. He hails from the political Buckley family, his uncles being William F. and James.

Moving back across the aisle, let’s say hello to Mr. Democrat James A. Johnson, who ran Fannie Mae from 1991 to 1998, served as vice chairman from 1990 to 1991, and earlier worked as a managing director at Lehman Bros. and for Vice President Walter F. Mondale. He currently leads the American Friends of Bilderberg and made news earlier this summer when he had to resign as vice-presidential-candidate vetter for Barack Obama “as new details emerged about loans Mr. Johnson received from mortgage lender Countrywide Financial Corp.,” according to the Wall Street Journal. In his 1997 profile of Johnson, “The Velvet Fist of Fannie Mae,” by Richard W. Stevenson writes that Johnson “hires lobbyists from both sides of the political aisle—last year the company had 36 registered lobbyists making its case in the hallways and hearing rooms of Congress. ... And Mr. Johnson has made Fannie Mae both a launching pad and a landing strip for officials moving in and out of politics and Government in Washington.” According to the voluminous “Report of the Special Examination of Fannie Mae” by the Office of the Federal Housing Enterprise Oversight (warning, extra large PDF!), Johnson earned nearly $21 million from Fannie Mae in 1998.

Moving down the Democratic Party food chain, we meet William M. Daley, son of former Chicago Mayor Richard J. Daley and brother of current Chicago Mayor Richard M. Daley. Daley worked as special counsel to President Clinton and chairman of Al Gore’s 2000 presidential campaign. He also served as a Clinton secretary of commerce from 1997 to 2000, and earlier as president of Amalgamated Bank in Chicago. He is now an executive at JPMorgan Chase & Co. Daley was appointed to the Fannie Mae board in 1993 by President Clinton.

As part of the “leave no Democrat behind” campaign, Johnson’s Fannie Mae hired Walter Hubbell, son of Webster L. Hubbell, in 1994. Walter Hubbell got his job, the Times’ Stevenson reports, “after Mr. Johnson and other executives received calls from Administration officials—including Mickey Kantor, who was then the United States trade representative—urging them to do so. At the time, the White House had undertaken an effort to help the Hubbell family financially after the senior Mr. Hubbell’s resignation from the Justice Department.” He got a slot in the marketing department, where Johnson said he was an ‘’outstanding” employee.

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.