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LAWMAKER ACCUSED OF FANNIE MAE CONFLICT OF INTEREST

 
 
Baldimo
 
Reply Mon 6 Oct, 2008 12:01 pm
Quote:
LAWMAKER ACCUSED OF FANNIE MAE CONFLICT OF INTEREST

WASHINGTON " Unqualified home buyers were not the only ones who benefitted from Massachusetts Rep. Barney Frank’s efforts to deregulate Fannie Mae throughout the 1990s.
So did Frank’s partner, a Fannie Mae executive at the forefront of the agency’s push to relax lending restrictions.
Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannie’s assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie.
Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical.
"It’s absolutely a conflict," said Dan Gainor, vice president of the Business & Media Institute. "He was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive. How is that not germane?
"If this had been his ex-wife and he was Republican, I would bet every penny I have - or at least what’s not in the stock market - that this would be considered germane," added Gainor, a T. Boone Pickens Fellow. "But everybody wants to avoid it because he’s gay. It’s the quintessential double standard."
A top GOP House aide agreed.
"C’mon, he writes housing and banking laws and his boyfriend is a top exec at a firm that stands to gain from those laws?" the aide told FOX News. "No media ever takes note? Imagine what would happen if Frank’s political affiliation was R instead of D? Imagine what the media would say if [GOP former] Chairman [Mike] Oxley’s wife or [GOP presidential nominee John] McCain’s wife was a top exec at Fannie for a decade while they wrote the nation’s housing and banking laws."
Frank’s office did not immediately respond to requests for comment.
Frank met Moses in 1987, the same year he became the first openly gay member of Congress.
"I am the only member of the congressional gay spouse caucus," Moses wrote in the Washington Post in 1991. "On Capitol Hill, Barney always introduces me as his lover."
The two lived together in a Washington home until they broke up in 1998, a few months after Moses ended his seven-year tenure at Fannie Mae, where he was the assistant director of product initiatives. According to National Mortgage News, Moses "helped develop many of Fannie Mae’s affordable housing and home improvement lending programs."
Critics say such programs led to the mortgage meltdown that prompted last month’s government takeover of Fannie Mae and its financial cousin, Freddie Mac. The giant firms are blamed for spreading bad mortgages throughout the private financial sector.
Although Frank now blames Republicans for the failure of Fannie and Freddie, he spent years blocking GOP lawmakers from imposing tougher regulations on the mortgage giants. In 1991, the year Moses was hired by Fannie, the Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for two- and three-family homes, even though they were defaulting at twice and five times the rate of single homes, respectively.
Three years later, President Clinton’s Department of Housing and Urban Development tried to impose a new regulation on Fannie, but was thwarted by Frank. Clinton now blames such Democrats for planting the seeds of today’s economic crisis.
"I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently.
Bill Sammon is FOX News' Washington Deputy Managing Editor.

http://www.foxnews.com/story/0,2933,432501,00.html


http://www.foxnews.com/story/0,2933,432501,00.html

This article is spot on. Why no mention of this in the media other then what I read on Fox News. As noted if there were a R instead of a D in front of his name this would have been aired nonstop since the begining of this issue.
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Type: Discussion • Score: 3 • Views: 2,740 • Replies: 28
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Cycloptichorn
 
  1  
Reply Mon 6 Oct, 2008 12:06 pm
@Baldimo,
I think, the fact that it is only tangential to our true financial problems is the reason you haven't seen much written about it....

Cycloptichorn
Foxfyre
 
  1  
Reply Mon 6 Oct, 2008 12:14 pm
@Baldimo,
Fox News seems to be the only mainstream media outlet that has much interest in getting to the facts of all this, Baldimo, at least for now. Most of the MSM so desperately wants Obama to win in November that they aren't giving any more than the most cursory coverage to anything negative about any Democrat and even then they make comments that play it down. To wit the NYT's story about Obama's relationship to Bill Ayers but leaving out the most damning information re that relationship and adding a comment--which the Obama campaign is using to blow off the story--that Obama and Ayers were never close. One of the facts the NYT conveniently left out of its story, for instance, was the fact that Ayers was instrumental in launching Obama into the mainstream by hosting a fund raiser for Obama in Ayres' living room.

And there are the difficulties with Obama helping direct large chunks of money toward Ayers interests, something that was that long before Obama went to the US Senate.

All the MSM are carefully avoiding mentioning the huge campaign contributions that Barney Frank and Barack Obama received from Fannie Mae/Freddie Mac too. They are #1 and #2 on the contribution list even.

Obama is probably going to win the election in November and more of this stuff might subsequently come out after he is safely inaugerated. For now, it is up to the very few brave media sources willing to report this stuff, talk radio, and more conservative types on the internet to get the information out. It's probably too little too late but we have to try.
0 Replies
 
Walter Hinteler
 
  1  
Reply Mon 6 Oct, 2008 12:26 pm
If that is illegal - why doesn't the prosecution act?
Baldimo
 
  1  
Reply Mon 6 Oct, 2008 01:49 pm
@Walter Hinteler,
Not as concerned with someone going to jail as I am with the lack news coverage on the issue. It wasn't listed in the article as being illegal just a lack of notice from the liberal news media. Plus the fact that they were gay had something to do with it.
Walter Hinteler
 
  1  
Reply Mon 6 Oct, 2008 01:55 pm
@Baldimo,
Well, in that case ... certainly the Washington Times will have a report about that, for instance.
0 Replies
 
Foxfyre
 
  1  
Reply Mon 6 Oct, 2008 01:57 pm
@Walter Hinteler,
Walter Hinteler wrote:

If that is illegal - why doesn't the prosecution act?


Currently the Congress, and therefore authorization for special prosecutors, are in the control of Democrats. You can bet your bippy they ain't calling for special prosecutors on any of this stuff when the fingers are pointing mostly at them.
Cycloptichorn
 
  1  
Reply Mon 6 Oct, 2008 01:59 pm
@Foxfyre,
Foxfyre wrote:

Walter Hinteler wrote:

If that is illegal - why doesn't the prosecution act?


Currently the Congress, and therefore authorization for special prosecutors, are in the control of Democrats. You can bet your bippy they ain't calling for special prosecutors on any of this stuff when the fingers are pointing mostly at them.


Naturally, the FBI and the DoJ do not require a special prosecutor to act. If there truly were mountains of evidence pointing to malfeasance on the part of Dems, they could go right at them at any time.

Cycloptichorn
0 Replies
 
Foxfyre
 
  1  
Reply Mon 6 Oct, 2008 02:02 pm
I imagine they are sniffing around. And I imagine the oversight committees from Congress are encouraging them to do that rather sparingly. And without efforts of an independent prosecutor or a serious Congressional investigation on a mess of the scope and magnitude of this one, there is unlikely to be conclusive evidence warranting arrests and/or indictments. So long as the Democrats are in power, expect there to be no independent prosecutor or any serious Congressional investigatons that could in any way implicate any Democrat.

Barney Frank, for instance, has blood dripping off his hands in this, but he arrogantly blames it on the Republicans and the media and his cronies in Congress will dutifully report anything he says about it and won't do any digging on their own.
dyslexia
 
  1  
Reply Mon 6 Oct, 2008 02:05 pm
@Foxfyre,
well foxfyre, by now it should be obvious that democrats are pure as the driven snow while everyone knows republicans are crooks and liars.
Walter Hinteler
 
  1  
Reply Mon 6 Oct, 2008 02:11 pm
@Foxfyre,
Forgot about that.

In Germany, the prosecutor’s office has the duty to investigate and pursue any matter in its jurisdiction as soon as it learns that a criminal offence has been -possibly- committed. ("Principle of mandatory prosecution of offenses", 'Legalitätsprinzip' in German = the reverse of nullum crimen, nulla poena sine lege.)
dyslexia
 
  1  
Reply Mon 6 Oct, 2008 02:19 pm
@dyslexia,
dyslexia wrote:

well foxfyre, by now it should be obvious that democrats are pure as the driven snow while everyone knows republicans are crooks and liars.
I guess I should have added a smiley face to the above but I do really tire of the Democrats are ***** or Republicans are ***** when the truth is no party as a lock on corruption. I find it distasteful when I see posters generalize with such extremism that their posts are rendered absurd and devoid of merit.
Foxfyre
 
  1  
Reply Mon 6 Oct, 2008 02:21 pm
@Walter Hinteler,
Walter Hinteler wrote:

Forgot about that.

In Germany, the prosecutor’s office has the duty to investigate and pursue any matter in its jurisdiction as soon as it learns that a criminal offence has been -possibly- committed. ("Principle of mandatory prosecution of offenses", 'Legalitätsprinzip' in German = the reverse of nullum crimen, nulla poena sine lege.)


Actually our Attorney General also has that authority, Walter, but President Bush, I think often to his own detriment, has taken the position that the President should be above finger pointing and playing the blame game and has chosen to try to work on a bipartisan basis and rarely involves the administration. All that has earned him is a reputation for poor leadership and an embarrasingly low approval rating. I hope future Republican presidents are watching that and vowing to themselves, "Never again".
0 Replies
 
Cycloptichorn
 
  1  
Reply Mon 6 Oct, 2008 02:22 pm
@Foxfyre,
Foxfyre wrote:

I imagine they are sniffing around. And I imagine the oversight committees from Congress are encouraging them to do that rather sparingly. And without efforts of an independent prosecutor or a serious Congressional investigation on a mess of the scope and magnitude of this one, there is unlikely to be conclusive evidence warranting arrests and/or indictments. So long as the Democrats are in power, expect there to be no independent prosecutor or any serious Congressional investigatons that could in any way implicate any Democrat.

Barney Frank, for instance, has blood dripping off his hands in this, but he arrogantly blames it on the Republicans and the media and his cronies in Congress will dutifully report anything he says about it and won't do any digging on their own.


Gosh, I suppose you now have a slight inkling of what the last 8 years have been like for the Democrats, Fox. Not too pleasant, eh?

Cycloptichorn
Foxfyre
 
  1  
Reply Mon 6 Oct, 2008 02:23 pm
@dyslexia,
I have said from the outset that neither party has clean hands on this. The Republicans failed to develop the backbone to get it done in face of heavy Democrat and media opposition--plus a few Republicans are also implicated--but in truth, the Democrats have the greater culpability in this whole financial debacle and they won't get their fair share of the blame. And there is absolutely nothing anybody is likely to be able to do about that at this time.
Foxfyre
 
  1  
Reply Mon 6 Oct, 2008 02:28 pm
I would sure like to follow the money (and political affiliation) of all these guys who got caught up in all this and lost their jobs while walking away with mega millions as their punishment:

(The dollar amounts are the golden parachutes they were paid as they left.)

•Alan Fishman
Total: $19 million
Company: Washington Mutual
Fishman was paid $19 million for three weeks of work. He joined WaMu on Sept. 8 and left on Sept. 25, 2008. The bank was seized by the FDIC -- the largest bank failure in US history -- and parts of it were bought by JPMorgan Chase.

•Stanley O'Neal
Total: $161 million
Company: Merrill Lynch
Merrill Lynch ousted O'Neal from his position on Oct. 28, 2007 shortly after the company reported $8 billion in write-downs. John Thain replaced him as CEO.

•Charles Prince
Total: $105 million
Company: Citigroup
Prince resigned from his position on Nov. 4, 2007 after the company announced $11 billion in write-downs.

•Angelo Mozilo
Total: $56 million
Company: Countrywide
Mozilo stepped down from the CEO spot on July 1, 2008 after leading Countrywide for 39 years. Bank of America bought the troubled mortgage lender in Jan. 2008.

•Kerry Killinger
Total: $44 million
Company: Washington Mutual
Killinger was removed as CEO on Sept. 8, 2008. He was replaced by Alan Fisherman, who led the company for three weeks until the bank was seized by the FDIC and sold to JPMorgan Chase.


•Ken Thompson
Total: $42 million
Company: Wachovia
Thompson was removed from his position on June 1, 2008 following questions about a major acquisition as well as heavy losses. Once the fourth largest bank in the US, Wachovia was later bought by Citigroup in Sept. 2008.

•Richard Fuld
Total: $24 million
Company: Lehman Brothers
Fuld's four-decade career with Lehman took a hit on Sept. 15, 2008 when the investment bank filed for Chapter 11 bankruptcy protection, the largest such case in US history.

•Richard Syron
Total: $16 million
Company: Freddie Mac
Freddie Mac, led by Syron until Sept. 8, 2008, was taken over by the federal government along with Fannie Mae.

•James Cayne
Total: $13 million
Company: Bear Stearns
Several months after two hedge funds collapsed, Cayne stepped down from the CEO position on Jan. 8. Bear Stearns was bought by JPMorgan Chase in a Fed-engineered deal in March.

•John Thain
Total: $9 million
Company: Merrill Lynch
Thain served as CEO of Merrill Lynch for less than a year, before Bank of America bought the investment bank for $50 billion on Sept. 14, 2008.

•Daniel Mudd
Total: $8 million
Company: Fannie Mae
Fannie Mae, led by Mudd until Sept. 8, 2008, was taken over by the federal government along with Freddie Mac.

And one (maybe) man of honor:
•Robert Willumstad
Total: $22 million (was declined)
Company: AIG
Willumstad reportedly rejected a $22 million severance package from troubled insurance giant AIG. He was replaced as CEO on Sept. 17, 2008 after the company received an $85-billion loan from the federal government in exchange for a 79.9 percent stake in the company.


I pulled these off the AOL news site just now and the link probably won’t work for long, if at all.
http://money.aol.com/creditdebt/credit-crunch-cash-kings?icid=200100125x1210636017x1200615925
0 Replies
 
Baldimo
 
  1  
Reply Mon 6 Oct, 2008 02:29 pm
@Foxfyre,
I hope McCain brings this up in the debate tomorrow night. Will be interesting to see Obama squirm when it is mentioned that he has the 2nd most money donations from the May company and the #1 guy is also a dem. McCain can claim the high ground because he tried to do something about it 2 years ago and Frank stood up and said nothing was wrong.
Foxfyre
 
  1  
Reply Mon 6 Oct, 2008 02:32 pm
@Baldimo,
But Frank is denying any culpability he has and is steadily accusing the Republicans and John McCain for being the villains. And it is HIS words that the media is reporting every hour on the hour just about while the damning story--the really INTERESTING damning story--is not getting much if any play at all.
revel
 
  1  
Reply Mon 6 Oct, 2008 04:26 pm
Since this is not the first I have head about Barney Franks interest in the Fannie Mae deal, I don't think the media is silent. Merely recongnizing that people on both sides of aisle (including McCain's compaign staffers) have been mixed up with the steps that led to meltdown which compases more than just Fannie Mae and Freddie Mac. If Barney Franks did something wrong or illegal then he should be held accountable.

As for the whole Ayers connection it really wasn't much of a connection and by the time Obama has any kind of dealings with him it has been in such settings as school boards and school reform projects and one coffee fund raiser Ayers hosted. Again mentioned in the media, in fact I heard it on CNN on a clip first thing this morning when Palin brought it up again as though it was something new.

Quote:
Twenty-six years later, at a lunchtime meeting about school reform in a Chicago skyscraper, Barack Obama met Mr. Ayers, by then an education professor. Their paths have crossed sporadically since then, at a coffee Mr. Ayers hosted for Mr. Obama’s first run for office, on the schools project and a charitable board, and in casual encounters as Hyde Park neighbors.


http://www.nytimes.com/2008/10/04/us/politics/04ayers.html?_r=3&hp&oref=slogin&oref=slogin&oref=slogin
ebrown p
 
  1  
Reply Mon 6 Oct, 2008 05:03 pm
@Foxfyre,
Foxfyre and Friends haven't considered the possibility that Fox news is biased (which explains why ONLY Fox News is reporting this silly story).

There is simply nothing here other than another vague insinuation of a Republican talking point.

Have you noticed that the words "Republican" and "smear" now seem to go together?
 

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