WHy aren't Fannie MAe/Freddy Mac execs being prosecuted like Enron's?

Grokmaster · #1 (**permalink**) 09-09-2008, 07:05 PM

Just curious; Enron's execs knowingly misreported their earnings by $578 million to produce higher bonus $$ for themselves,and went to prison.
Fannie Mae and Freddy Mac's execs did the same thing ,except to the tune of about $6 billion in 2004,and even more most recently,and are not only not being prosecuted,but are being allowed to take their money and leave,or REMAIN ON AS CONSULTANTS for the government takeover !!!???
Huh?
Doesn't have a anything to do with ALL OF THEM being politically connected,such as Clinton Adm. Justice Dept Ast. Attorney General Jamie Gorelick,or Carter Adm. member Frank Raines, does it? Naaaah...couldn't be.

http://blog.heritage.org/2008/07/14/...ilism-exposed/

http://mrmortgage.ml-implode.com/200...aud-breakdown/

retepger · #2 (**permalink**) 09-09-2008, 07:07 PM

Because they have donated over $ 1 Million to Reverend Jackson and other political causes.

Grokmaster · #3 (**permalink**) 09-09-2008, 07:15 PM

Quote:

Originally Posted by retepger

Because they have donated over $ 1 Million to Reverend Jackson and other political causes.

Ahhh.... that 'splains it! Silly me....

PS- They've donated to a LOT more than Rev. Jacksuuuuuuuuun-uh; check out the donations list from this election cycle:

http://www.opensecrets.org/news/2008...-of-fanni.html

"Dodd", "Clinton", "OBAMA" and "Kerry" are the top four Senate reciprients. Dodd obviously got more than favorable loans terms....

jhffmn · #4 (**permalink**) 09-09-2008, 07:42 PM

The way I understand it, neither is ENTIRELY responsible for the fiasco.

I think they just back the mortgage brokers, perhaps someone with a good understanding can explain it in more depth.

But this whole thing has a lot of players. I blame the federal reserve and gov for making it all possible. I am a bit shaky on the inner workings of it all after that.

Quote:

Fannie also bought off activist groups such as the corrupt Association of Community Organizations for Reform Now (ACORN), which has been indicted, multiple times across the country, for vote fraud (Obama worked closely with ACORN as a street organizer in Chicago). Fannie’s lobbying efforts paid off as liberal politicians such as Sen. Chuck Schumer (D-N.Y.) and Rep. William Clay (D-Mo.) worked to kill any real reform of Freddie and Fannie. The Washington Post reports: “In an internal memo in 2004, Fannie Mae executive Daniel H. Mudd affirmed what the company’s critics had long contended: In the political arena, ‘we always won’ and ‘we took no prisoners.’”

Fannie was created during the New Deal to make homes more affordable for lower- and middle-income Americans. Freddie was added years later for the same purpose. Fannie and Freddie have long outlived their purpose as the market for repackaging loans as securities is now well developed. When the housing market is booming, they are not needed, and they have both gone well beyond their original mission and are now backing loans for wealthy (witness Speaker Nancy Pelosi’s continued efforts to raise the cap on the size of the loans that Fannie and Freddie can buy).

Well, I guess they really can't blame bush for the economy huh.

Grokmaster · #5 (**permalink**) 09-09-2008, 07:52 PM

Quote:

Originally Posted by jhffmn

The way I understand it, neither is ENTIRELY responsible for the fiasco.

I think they just back the mortgage brokers, perhaps someone with a good understanding can explain it in more depth.

But this whole thing has a lot of players. I blame the federal reserve and gov for making it all possible. I am a bit shaky on the inner workings of it all after that.

Well, I guess they really can't blame bush for the economy huh.

I blame the execs who falsely reported earnings to pump up their bonuses= FRAUD.

JeffLV · #6 (**permalink**) 09-09-2008, 11:38 PM

Quote:

Originally Posted by Grokmaster

I blame the execs who falsely reported earnings to pump up their bonuses= FRAUD.