Senator Christopher Dodd: Business as usual!
The downhill race to create ski helmet laws ...


Fannie Mae and Freddie Mac have traditionally been tied to the policies and politics of the democrat party. And perhaps that explains why former executives of both government sponsored entities (GSEs) managed to avoid jail for allegedly “cooking the books” for the purposes of painting a false picture of their performance for Wall Street and the regulatory agencies – as well as earning multi-million dollar bonuses.

Both GSEs  are operating under the government’s conservatorship and using taxpayer funds to make their deals. So why are the democrats not screaming about the hypocrisy of excoriating AIG executives and letting the GSE executives slide under the political radar?  

And, why are these entities still allowed to trade their stock on the New York Stock Exchange when their share price has fallen below the one dollar minimum listing requirement?

Politics, pure and simple. The very same politics which the media ignores when the perpetrators have a “D” after their names.

“Both companies were seized by federal regulators last fall. Fannie has requested $15.2 billion in government aid, while Freddie has asked for nearly $31 billion in additional aid on top of the $13.8 billion it received last year.”

Retention of top-level executives whose performance was abysmal – and who have outrageous compensation packages for running government-sponsored and government-guaranteed enterprises – is unconscionable.

Perhaps the public should demand a nationwide job search to find competent mortgage executives without political connections.

And, why is Barney Frank, shouting loudly about mortgage industry problems when he, himself, was complicit in killing attempts to regulate the GSEs and was involved in a gay love affair with a Fannie Mae executive whose duties were impacted by “The Barney’s” legislation? Perhaps it is time to investigate the Congressional democrats whose influence over Fannie Mae and Freddie Mac may have resulted in the loosening of credit standards for the loans purchased and securitized by both GSEs.

-- steve

Research Links:

Fannie plans bonuses of up to $611K for 4 execs - Yahoo! Finance

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