Rewriting History – $6.5 TRILLION collapse and all I got was this lousy Taxpayer Funded t-shirt?

Former Enron CEO and Bush Contributor Ken Lay presided over a measly $65 Billion collapse and no taxpayer bailout. Meanwhile Fannie Mae CEO’s, weighing in with a $6.5 Trillion collapse and with a taxpayer bailout. The Center for Responsive Politics keeps track of which politicians get Fannie and Freddie political contributions. The top three U.S. Senators getting big Fannie and Freddie political bucks were Democrats and number two is Senator Barack Obama.

Two guys who presided over the biggest financial disaster in modern times are shielded by Democrats who’s policies they supported and encouraged. Ken Lay (deceased) became famous and was the subject of numerous SNL skits. Will the same fate befall these two, and what the hell do they look like? Jim Johnson, Former Fannie Mae CEO/Lehman Executive and now Obama Campaign Advisor/Contributor – Beginning in January of 1990 and continuing through December 1999 he was employed by Fannie Mae. He served as Vice Chairman (1990), Chairman and CEO (1991-1998), and Chairman of the Executive Committee (1999). Prior to joining Fannie Mae, Johnson was a managing director in corporate finance at Lehman Brothers. Before joining Lehman (now defunct), he was the president of Public Strategies, a Washington-based consulting firm he founded to advise corporations on strategic issues. Jim Johnson who was asked by Senator Barack Obama to start the search for a viable Vice Presidential candidate. Johnson did the same job for John Kerry in 2004 and Walter Mondale in 1984.

Franklin Raines, Former Fannie Mae CEO who served as White House budget director under President Bill Clinton, is currently employed by Barack Obama’s Presidential Campaign as an economic adviser. In 2005 Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 Billion accounting scandal. The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
In 2005 there was an itty-bitty oopsie $10.6 Billion problem.
In 2006, the OFHEO announced a suit against Raines in order to recover some or all of the $50 million in payments made to Raines based on the overstated earnings [4] initially estimated to be $9 billion but have been announced as 6.3 billion.[2]. In June 2008 Wall Street Journal reported that Franklin Raines was one of several politicians who received below market rates loans at Countrywide Financial (now in ruins) because the corporation considered the officeholders “FOA’s”–“Friends of Angelo” (Countrywide Chief Executive Angelo Mozilo). He received loans for over $3 million while CEO of Fannie Mae. [5] Franklin Raines is currently one of Barack Obama’s chief economic advisers. (my emphasis) Just going on how they so successfully glommed onto huge amounts of personal gain and cash-money, I’d say they were Uniters, united in the spirit of gainfulness…

That’s who’s advising Mr. Barak Obama on political policy and finance issues, not Ken Lay (who’s dead), who’s Non-Taxpayer-Bailout scandal was worth only a fraction of a percentage of these guy’s.

In short: Ken Lay, Enron, $65 Billion, no public bailout, congressional lynching – now he’s dead.
Compared to: Jim Johnson and Franklin Raines, CEO’s Fannie Mae, $6.5 TRILLION, taxpayer bailout to preserve a longtime Democrat-run DC feifdom and social engineering program, no hearings – Barak Obama’s advisors in politics, finance, and housing…

Oh great, just great.

UPDATE: Source/Cite – OpenSecrets.Org Link (and above) of top Fannie Mae and Freddie Mac recipients – Barak’s #2!
Heh.
What about Clinton’s own Jamie Gorelick, Mistress of Disaster? Reportedly an Obama choice for Attorney General?
Author of the “Don’t Ask, Don’t Tell” policy – and also author of The Wall, the policy which prevented the foreign intelligence and criminal investigative communities from collaborating, easing the path for terrorists to 9/11.
Jamie Gorelick who also had a direct hand in the mortgage securitization debacle.

In 1999 Fannie Mae announced that it would purchase $10B in CRA loans. In 2001 they reached that target as Ms. Gorelick announced that they would roll these into special security issues.

“Our approach to our lenders is `CRA Your Way’,” Gorelick said. “Fannie Mae will buy CRA loans from lenders’ portfolios; we’ll package them into securities; we’ll purchase CRA mortgages at the point of origination; and we’ll create customized CRA-targeted securities. This expanded approach has improved liquidity in the secondary market for CRA product, and has helped our lenders leverage even more CRA lending. Lenders now have the flexibility to use their own, customized loan products,” Gorelick said.

ChangeHope? I don’t think so…

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About NotClauswitz

The semi-sprawling adventures of a culturally hegemonic former flat-lander and anti-idiotarian individualist, fleeing the toxic cultural smug emitted by self-satisfied lotus-eating low-land Tesla-driving floppy-hat wearing lizadroid-Leftbat Califorganic eco-tofuistas ~

4 thoughts on “Rewriting History – $6.5 TRILLION collapse and all I got was this lousy Taxpayer Funded t-shirt?

  1. I’m not convinced that we’re going all the way to another Great Depression, but we’re not going to enjoy living in these times. We’d have been in much better shape if we’d taken the smaller beating we were due after the .com bust.

  2. WOW. Just Wow!I had no idea.Thanks for getting the skinny on this one.I’m really wondering if all of this overt market manipulation, both the secret stuff behind the curtains, and the congressional meetings, are going to throw us into another depression.Interesting times.

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