THE TRUTH, THE WHOLE TRUTH
Financial chaos laid squarely at the door of Clinton Democrats: Frank, Dodd, Raines, Gorelick, Obama, Rubin, Johnson. Some Republicans bear responsibility including President Bush, who failed to overcome Democrat resistance to reform during the last seven years.
This collection of stories require no commentary other than a request all Americans step back, study, and make an informed decision concerning who should be held accountable for running our country into the ground. Note many experts trace the origins of our financial meltdown to mismanagement of Fannie Mae and Freddie Mac.
Barack Obama’s Fannie Mae/Freddie Mac Connection
Tuesday, September 16, 2008
By John Gibson
“Fannie and Freddie have been creations of the congressional Democrats and the Clinton White House, designed to make mortgages available to more people and, as it turns out, some people who couldn’t afford them.
Fannie and Freddie have also been places for big Washington Democrats to go to work in the semi-private sector and pocket millions. The Clinton administration’s White House Budget Director Franklin Raines ran Fannie and collected $50 million. Jamie Gorelick — Clinton Justice Department official — worked for Fannie and took home $26 million. Big Democrat Jim Johnson, recently on Obama’s VP search committee, has hauled in millions from his Fannie Mae CEO job.
Sen. Barack Obama: No. 2 on the Fannie/Freddie list of favored politicians after just four short years in the Senate.”
Democrats’ Silencing Is Deafening
Friday, September 19, 2008
John Gibson, www.gibsonradio.com
“It looks to me like Fannie Mae and Freddie Mac — the twin $1 trillion disasters — were the creation of congressional Democrats and a Democrat White House.
So where are the Democrats? Why no news conferences explaining themselves?
Barney Frank — who who insisted Fannie and Freddie had to buy loans made to the unqualified — has had nothing substantial to say, though he did wisecrack yesterday in a Hi-Ho Silver voice: The “loan arranger” is on the way. He was referring to the administration riding in to save him.
Nancy Pelosi denied years of Democrat-sponsored easing of lending standards at Fannie and Freddie and simply said, no, not our fault.
Harry Reid over in the Senate promised Democrat action and immediately adjourned Congress to get out of town right away.
Bob Rubin, the Clinton economic genius who oversaw the launch of Fannie and Freddie drunken sailor’s decade, stood with Obama today. He’s the one who went from the White House to Citibank where he lost a billion dollars.”
Rules ‘bent’ to provide Obama advisers loans
September 24, 2008
September 22, 2008
By Jerome R. Corsi
NEW YORK – Two Barack Obama advisers, Franklin Raines and James Johnson, received preferential home loans as industry favors, apparently in deference to their executive positions heading Fannie Mae.Raines and Johnson, as “friends of Angelo Mozilo,” the chief executive of Countrywide Financial Corp. – the now bankrupt high-flying loan originator in the sub-prime mortgage debacle – were funneled millions of dollars for personal home loans. Mozilo himself made exceptions from Countrywide policy to provide the two Fannie Mae CEO’s “sweetheart deals.”
Fannie Mae, Freddie Mac execs now offering advice to Obama
Senator’s links to mortgage giants also include campaign contributions
September 17, 2008
By Jerome R. Corsi
NEW YORK – Campaign contributions from Fannie Mae and Freddie Mac made to Barack Obama may backfire if the Democratic presidential hopeful wages an aggressive campaign to cast blame on rival John McCain and the Republicans in Congress for the mortgage-related losses that forced the U.S. Treasury to take over the quasi-governmental mortgage giants.
A review of Federal Election Commission records back to 1989 reveals Obama in his three complete years in the Senate is the second largest recipient of Freddie Mac and Fannie Mae campaign contributions, behind only Sen. Christopher Dodd, D-Conn., the powerful chairman of the Senate banking committee. Dodd was first elected to the Senate in 1980.
According to OpenSecrets.com, from 1989 to 2008, Dodd received $165,400 in Fannie Mae and Freddie Mac campaign contributions, including contributions from PACs and individuals, followed by Obama, who received $126,349 in such contributions since being elected to the Senate in 2004.
In contrast, McCain warned of the coming mortgage crisis as he pressed in 2005 for regulatory reform of Fannie Mae and Freddie Mac.
“For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac – known as government-sponsored entities or GSEs – and the sheer magnitude of these companies and the role they play in the housing market,” McCain said on the floor of the Senate in 2005, speaking in favor of the Federal Housing Enterprise Regulatory Reform Act of 2005.
How the Democrats Created the Financial Crisis: Kevin Hassett
Wall Street’s Unraveling
By Robert J. Samuelson
Wednesday, September 17, 2008
Washington must heed fiscal alarm bell
By David Walker, former comptroller general
September 22 2008
“Greed was rampant. Fannie Mae and Freddie Mac strayed from their original mission, becoming too focused on profit and personal gain rather than their public purpose. Lax oversight was facilitated by powerful Wall Street lobbies and the lobbying of Fannie Mae and Freddie Mac.”
How A Clinton-Era Rule Rewrite Made Subprime Crisis Inevitable
By TERRY JONES
INVESTOR’S BUSINESS DAILY | Posted Wednesday, September 24, 2008 4:30 PM PT
One of the most frequently asked questions about the subprime market meltdown and housing crisis is: How did the government get so deeply involved in the housing market?
The answer is: President Clinton wanted it that way.
Fannie Mae and Freddie Mac, even into the early 1990s, weren’t the juggernauts they’d later be.
While President Carter in 1977 signed the Community Reinvestment Act, which pushed Fannie and Freddie to aggressively lend to minority communities, it was Clinton who supercharged the process. After entering office in 1993, he extensively rewrote Fannie’s and Freddie’s rules.
In so doing, he turned the two quasi-private, mortgage-funding firms into a semi-nationalized monopoly that dispensed cash to markets, made loans to large Democratic voting blocs and handed favors, jobs and money to political allies. This potent mix led inevitably to corruption and the Fannie-Freddie collapse.
ROBERT RUBIN: Obama advisor, Clinton treasury secretary
“Rubin’s remarks seemed glib given that the financial world looks very much ready to melt down. To wit: Standard & Poor’s issued a report, also Wednesday, saying that financial institutions -including credit unions and some Asian banks – could lose more than $265 billion as a result of subprime mortgage contagion, up from an earlier estimated $130 billion.”
From January 20, 1993, to January 10, 1995, Robert Rubin served in the White House as Assistant to the President for Economic Policy. In that capacity, he directed the National Economic Council, which Bill Clinton created after winning the presidency.
Upon leaving the Clinton Administration, Mr. Rubin joined the Board of The Local Initiatives Support Corporation (LISC), the nation’s leading community development support organization as Chairman.
Reflecting on his decision to join an institution devoted to bringing economic activity to neglected areas of the country, the Chicago Tribune said the following in an editorial: “Even before he became Bill Clinton’s treasury secretary, during his days as a high-powered Wall Street executive, Rubin was passionate about fostering business investment as the way to fight poverty in depressed city and rural areas. That made him somewhat unusual among Democrats, who generally emphasized government anti-poverty programs.”
In 1999, affirming his career-long interest in markets, Mr. Rubin joined Citigroup. Of note, the supermerger between Travelers Group and Citicorp was facilitated by the repeal of the Glass Steagall Act (Gramm-Leach-Bliley Act). This legislation was passed under the Clinton administration, days before Rubin’s resignation. Consolidation of investment, commercial banking, and insurance services as practiced by Citigroup under the direction of Rubin, has been implicated in the subprime mortage crisis. He sparked controversy in 2001 when he contacted an acquaintance at the Treasury Department and asked if the department could convince bond-rating agencies not to downgrade the corporate debt of Enron, a debtor of Citigroup. Rubin wanted Enron creditors to lend money to the troubled company for a restructuring of its debt; a collapse of the energy giant might have serious consequences for financial markets and energy distribution. The Treasury official refused. A subsequent congressional staff investigation cleared Rubin of any wrongdoing, but he was still harshly criticized by political opponents.