Tag Archives: Franklin Raines

Fannie Mae wants more money

What’s new from Fannie Mae?  Well, guess what, they are now asking the U. S. Treasury for $15.2  billion more and this is (after the bailout).

The US government-controlled Fannie  Mae reported a loss of 25.2 billion dollars in the fourth quarter driven mainly by the effects of a prolonged housing slump and a global financial crisis.

It had a third-quarter loss of 29.0 billion dollars. For the full year of 2008, the company posted a loss of 58.7 billion dollars, almost 27 times higher than the 2007 loss of 2.1 billion dollars.

Fannie Mae said it submitted a request Wednesday for 15.2 billion dollars from the Treasury “in order to eliminate our net worth deficit as of December 31, 2008.”

“We expect the market conditions that contributed to our net loss for each quarter of 2008 to continue and possibly worsen in 2009, which is likely to cause further reductions in our net worth,” the company said in a statement.

For the rest of the story. (RIP Paul Harvey)

Now, watch the video below from late 2004 how the regulatory guy who was trying to put a stop to the lending practices and fraud in Fannie Mae – how he is being berated and attacked by these people who are supposed to be representing the people of America.  We have been had.  And had bad.

Note:  Mr. Arthur Davis shown on this video was a man and stepped up and said he was wrong in his comments at the time and for that he has my admiration.  I don’t know of any other person who is shown who has done that.

H/T:  Jammie Wearing Fool

Posted:  03.01.09

1 Comment

Filed under Barack Obama, Financial Crisis, Human Interest, politics, President Barack Obama, Uncategorized

What Caused Our Economic Crisis? Money For Nothing and Your Houses For Free (Repost)

This was first posted in September of 2008.

This video made it to the Mainstream Media.  New Media, the internet, and American citizens, are doing the legwork and investigative reporting so lacking in the Mainstream.

I’m not sure what version of the video this is, but what about this attempt to shut this video down?  More strong arm tactics?  That freedom of speech really does rub some people the wrong way.  And we sure don’t want them in the White House.  (Too late now)

ALERT 09/30 15:00 pm ET: YouTube has now taken down not only the first version of the Burning Down the House video produced by TheMouthPiece, but has also taken down versions 2 (9/27) and 3 (9/29).  The version directly below is now removed.

http://therealbarackobama.wordpress.com/2008/09/26/burning-down-the-house-what-caused-our-economic-crisis/

HERE’S THE NEW VERSION BELOW:

The current mess would never have occurred in the absence of ill-conceived federal policies. The federal government chartered Fannie Mae in 1938 and Freddie Mac in 1970; these two mortgage lending institutions are at the center of the crisis. The government implicitly promised these institutions that it would make good on their debts, so Fannie and Freddie took on huge amounts of excessive risk.

Worse, beginning in 1977 and even more in the 1990s and the early part of this century, Congress pushed mortgage lenders and Fannie/Freddie to expand subprime lending. The industry was happy to oblige, given the implicit promise of federal backing, and subprime lending soared.

This subprime lending was more than a minor relaxation of existing credit guidelines. This lending was a wholesale abandonment of reasonable lending practices in which borrowers with poor credit characteristics got mortgages they ere ill-equipped to handle.

http://www.cnn.com/2008/POLITICS/09/29/miron.bailout/index.html?iref=mpstoryview

Reposted:  02.27.09

3 Comments

Filed under Barack Obama, Financial Crisis, Human Interest, life, Media, politics, President Barack Obama, Uncategorized

Shocking Video! Democrats Covering Up Fannie/Freddie Scam That Has Caused Our Economic Crisis (Repost)

THE DEMOCRATS SCAM AMERICA!.

This video (below) shows excerpts from a hearing to investigate Fannie Mae and Freddie Mac’s illegal bookkeeping practices that was held in 2004.

Representative Richard Baker, (R), Louisiana, Chairman of Government Sponsored Enterprises Subcommittee said, “It is a troubling report but a report of extreme importance, not only to those who wish to own a home, but to the taxpayers of this country who would pay the cost of the clean-up of an enterprise failure.”

Maxine Waters (D), said, “…..trying to fix something that wasn’t broke.  We do not have a crisis at Freddie Mac and particularly Fannie Mae under the outstanding leadership of Mr. Frank Raines.”  Notice how they cover for each other.  She continues, praising the use of innovative financing from “desk top loans to 100% financing.”

And Representative Meeks (D) is “pissed off” because they are bringing these activities up and he is berating those who were trying to get some accountability, and particularly the OPHEO Chairman, Armondo Falcon.

And then you have Mr. Lacy Clay (D) who plays the race card, calling the investigation of the illegal activity by Frank Raines, Fannie’s CEO, a political lynching.

And remember Franklin Raines?  The very same Franklin Raines who is a financial advisor for the Obama campaign and who walked off from Fannie Mae with a $22 million dollar severance package.

I mean, just play the video because there is much more “in their own words” verification of what has actually caused this financial crisis for which some $700 billion dollars of taxpayer money is now being requested to bail out our country from financial ruin.

I cannot even say how bad this is.

For starters, I think they should go after every single asset of these people on this video who are speaking against the attempt to avert this crisis.  We know who they are and we know where to find them.  In fact, some have been brazenly making appearances on the national media lately trying to blame republicans for this mess.

Things do have a way of disappearing…..

So Note:  01.03.12 – This video can be seen at http://www.youtube.com/watch?v=ebWJ892h5dA

Barney Frank (D) and Chris Dodd (D) are major players at fault.  This is so disgusting.  How do you know when Chris Dodd is lying?  So absolutely disgusting.
http://avenue-of-rememberance.blogspot.com/2008/09/how-do-you-know-when-chris-dodd-is.html

More verification in this presentation below:

http://video.yahoo.com/watch/3592766?fr=yvmtf

Posted 09.27.08

33 Comments

Filed under Barack Obama, Media, politics, Uncategorized

Bush and McCain Proposed Oversight of Fannie Mae and Freddie Mac

Okay.  Now somebody is not telling the whole story here.  This September 17, 2008, article in the Washington Post, begins by stating this:

A decade ago, Sen. John McCain embraced legislation to broadly deregulate the banking and insurance industries, helping to sweep aside a thicket of rules established over decades in favor of a less restricted financial marketplace that proponents said would result in greater economic growth.

It goes on to state:

In 2002, McCain introduced a bill to deregulate the broadband Internet market, warning that “the potential for government interference with market forces is not limited to federal regulation.” Three years earlier, McCain had joined with other Republicans to push through landmark legislation sponsored by then-Sen. Phil Gramm (Tex.), who is now an economic adviser to his campaign. The Gramm-Leach-Bliley Act aimed to make the country’s financial institutions competitive by removing the Depression-era walls between banking, investment and insurance companies.

But there is no mention whatsoever of the following from the New York Times in September of 2003 and this is why the credibility of most of the media is at risk because they slant the story to say what they want it to say and not even try to give an overall truthful picture:

New Agency Proposed to Oversee Freddie Mac and Fannie Mae

By Stephen Labaton

September 11, 2003

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac — which together have issued more than $1.5 trillion in outstanding debt — is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.

”There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,” Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.

Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing. ”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank 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.” Representative Melvin L. Watt, Democrat of North Carolina, agreed. ”I don’t see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,” Mr. Watt said.

And it is more than a little disturbing that there was no mention of John McCain’s words before congress in 2006:

Federal Housing Enterprise Regulatory Reform Act of 2005

The United States Senate May 25, 2006 Sen. John McCain [R-AZ]: Mr. President, this week 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. The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

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. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay. I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole. I urge my colleagues to support swift action on this GSE reform legislation.

The Democrats killed this measure in Committee preventing the full Senate Vote.

Now, does this tell the whole story of what is happening to the housing and financial system in the United States?  I’m sure it does not.  Mostly what I hear is that it is “complex.” But it sure is unfair and misleading, to say the least, to note something that happened ten years ago without also stating what happened in 2003 and 2006.  The truth is in there somewhere.

Check this link http://cbs2chicago.com/business/fannie.mae.franklin.2.703253.html for some interesting facts about the aforementioned Franklin Raines, former CEO of Fannie Mae, or just Google him.  According to Wiki, Raines is currently employed by Barack Obama’s Presidential Campaign as an economic adviser. Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008 Top Three:

Dodd, Christopher J S CT D $165,400
Obama, Barack S IL D $126,349
Kerry, John S MA D $111,000

See all: http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html

September 19, 2008 update “In 2005– Barack Obama and the Congressional Black Caucus met with Fannie Mae for a “family” event. In 2005 Democrats also blocked reform of Fannie Mae”  And this little piggy went to market. This video is a must see. click link below:

http://www.youtube.com/watch?v=cLQU7uNR5bM

https://bellalu0.wordpress.com/2008/10/17/shocking-video-democrats-covering-up-fanniefreddie-scam-that-has-caused-our-economic-crisis/

http://sarah-palin-2008.blogspot.com/2008/09/busted-video-of-fannie-mae-ceo-in-2005.html

…..

http://sweetness-light.com/archive/bush-mccain-tried-to-reform-housing-finance

House of Representatives Committee on Financial Services: The Committee oversees all components of the nation’s housing and financial services sectors including banking, insurance, real estate, public and assisted housing, and securities. The Committee continually reviews the laws and programs relating to the U.S. Department of Housing and Urban Development, the Federal Reserve Bank, the Federal Deposit Insurance Corporation, Fannie Mae and Freddie Mac…..

http://financialservices.house.gov/who.html

Chairman, Barney Frank (D) and members which include both democrats and republicans

…..

U.S. Senate Committee On Banking, Housing, and Urban Affairs

http://banking.senate.gov/public/index.cfm?FuseAction=Information.Membership

Christopher Dodd, Chairman (D). Members, both democrats and republicans.

http://hennessysview.com/2008/09/15/franklin-raines-criminal-enterprise-and-barack-obama-his-accomplice/

…..

Posted:  09.17.08  Updated:  09.19.08  Updated:  09.24.08

52 Comments

Filed under John McCain, politics, Uncategorized