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Obama in Corrupt Pocket of Freddie Mac, Sallie Mae

Discussion in 'U.S. Politics' started by asur, Sep 16, 2008.

  1. asur

    asur New Member

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    On Sunday the government completely took over the two government-sponsored enterprises. Current members of Congress have received a total of $4.8 million from Fannie Mae and Freddie Mac, with Democrats collecting 57 percent of that. OpenSecrets has posted a list of all Recipients of Fannie Mae and Freddie Mac Campaign Contributions, between 1989 and 2008. Guess who comes in second on this list? Thats right! Mr. Blame all the problems on the Republicans, Barack HUSSEIN Obama, at $126,349. Don’t expect to read about this on any of the major media outlets, as the far left MSN will just bury this story too. Yet another bad mark against Obama.

    Don't expect there to be an investigation into the source of collapse either, since Democrats were the root of the problem. By all accounts it's one of the worst financial scams in American history.
     
  2. XCALIDEM

    XCALIDEM Active Member

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    you're raising a great point here. I've heard of this in the past. I don't see why McPalin isn't taking advantage of this in a moment like this....:mad:
     
  3. bododie

    bododie New Member

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    Investor’s Business Daily, September 15, 2008

    Obama in a statement yesterday blamed the shocking new round of subprime-related bankruptcies on the free-market system, and specifically the “trickle-down” economics of the Bush administration, which he tried to gig opponent John McCain for wanting to extend.

    But it was the Clinton administration, obsessed with multiculturalism, that dictated where mortgage lenders could lend, and originally helped create the market for the high-risk subprime loans now infecting like a retrovirus the balance sheets of many of Wall Street’s most revered institutions.

    Tough new regulations forced lenders into high-risk areas where they had no choice but to lower lending standards to make the loans that sound business practices had previously guarded against making. It was either that or face stiff government penalties.

    The untold story in this whole national crisis is that President Clinton put on steroids the Community Redevelopment Act, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but “predatory.”

    Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the ‘90s by Clinton and his social engineers. They were the political catalyst behind this slow-motion financial train wreck.

    And the worst is far from over. By the time it is, we’ll all be paying for Clinton’s social experiment, one that Obama hopes to trump with a whole new round of meddling in the housing and jobs markets. In fact, the social experiment Obama has planned could dwarf both the Great Society and New Deal in size and scope.

    There’s a political root cause to this mess that we ignore at our peril. If we blame the wrong culprits, we’ll learn the wrong lessons. And taxpayers will be on the hook for even larger bailouts down the road.
     
  4. Pandora

    Pandora Well-Known Member

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    The followers of the one true messiah of the ultra left will not accept this, and it doesnt matter if its true!


    Gosh if they really throw out Biden to put in Hillary, I feel sorry for her, this is a whole lot of baggage to have to carry for "the ONE"
     
  5. top gun

    top gun New Member

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    That's the silliest thing I've ever heard!:D And that goes just as much if the contribution story is true or false.

    A contribution to a campaign has nothing to do with the Republican deregulation that helped cause the colapse.

    I'm guessing if there were totally legitamate donations to Senator Obama it's because the contributors are betting on him to WIN!

    From your standard of logic Ron Paul is a racist Klan lover because some Klan websites supported him. Come on... there's nothing to see here.
     
  6. Pandora

    Pandora Well-Known Member

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    both gave more money to Chris Dodd than any person in congress, and Messiah Lord Obama got the second most. McCain in 2005 tried to bring a co sponsered bill about this exact problem but he was shot down. I am not a huge McCain fan but he did have it right, and YOUR Messiah is in the pockets of this curruption

    He will never have to be accountable for this like he wont for anything else but it makes it no less true :)
     
  7. Pandora

    Pandora Well-Known Member

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    John McCain in 2005 speaking to Congress about Fannie Mae and Freddie Mac.
    GovTrack: Senate Record: FEDERAL HOUSING ENTERPRISE REGULATORY REFORM... (109-s20060525-16)

    http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16


    Sen. John McCain R-AZ on the McCain - Federal Housing Enterprise Regulatory Reform Act of 2005

    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.
     
  8. Pandora

    Pandora Well-Known Member

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    Bush Admin also talked about this in 2003



    September 11, 2003
    New Agency Proposed to Oversee Freddie Mac and Fannie Mae
    By STEPHEN LABATON
    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.

    Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.

    The administration's proposal, which was endorsed in large part today by Fannie Mae and Freddie Mac, would not repeal the significant government subsidies granted to the two companies. And it does not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enables them to issue debt at significantly lower rates than their competitors. Nor would it remove the companies' exemptions from taxes and antifraud provisions of federal securities laws.

    The proposal is the opening act in one of the biggest and most significant lobbying battles of the Congressional session.

    After the hearing, Representative Michael G. Oxley, chairman of the Financial Services Committee, and Senator Richard Shelby, chairman of the Senate Banking Committee, announced their intention to draft legislation based on the administration's proposal. Industry executives said Congress could complete action on legislation before leaving for recess in the fall.

    ''The current regulator does not have the tools, or the mandate, to adequately regulate these enterprises,'' Mr. Oxley said at the hearing. ''We have seen in recent months that mismanagement and questionable accounting practices went largely unnoticed by the Office of Federal Housing Enterprise Oversight,'' the independent agency that now regulates the companies.

    ''These irregularities, which have been going on for several years, should have been detected earlier by the regulator,'' he added.

    The Office of Federal Housing Enterprise Oversight, which is part of the Department of Housing and Urban Development, was created by Congress in 1992 after the bailout of the savings and loan industry and concerns about regulation of Fannie Mae and Freddie Mac, which buy mortgages from lenders and repackage them as securities or hold them in their own portfolios.

    At the time, the companies and their allies beat back efforts for tougher oversight by the Treasury Department, the Federal Deposit Insurance Corporation or the Federal Reserve. Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families. This year, however, the chances of passing legislation to tighten the oversight are better than in the past.

    Reflecting the changing political climate, both Fannie Mae and its leading rivals applauded the administration's package. The support from Fannie Mae came after a round of discussions between it and the administration and assurances from the Treasury that it would not seek to change the company's mission.

    After those assurances, Franklin D. Raines, Fannie Mae's chief executive, endorsed the shift of regulatory oversight to the Treasury Department, as well as other elements of the plan.

    ''We welcome the administration's approach outlined today,'' Mr. Raines said. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company's 18 board members.

    Company executives said that the company preferred having the president select some directors. The company is also likely to lobby against the efforts that give regulators too much authority to approve its products.

    Freddie Mac, whose accounting is under investigation by the Securities and Exchange Commission and a United States attorney in Virginia, issued a statement calling the administration plan a ''responsible proposal.''

    The stocks of Freddie Mac and Fannie Mae fell while the prices of their bonds generally rose. Shares of Freddie Mac fell $2.04, or 3.7 percent, to $53.40, while Fannie Mae was down $1.62, or 2.4 percent, to $66.74. The price of a Fannie Mae bond due in March 2013 rose to 97.337 from 96.525.Its yield fell to 4.726 percent from 4.835 percent on Tuesday.

    Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators.

    ''The regulator has not only been outmanned, it has been outlobbied,'' said Representative Richard H. Baker, the Louisiana Republican who has proposed legislation similar to the administration proposal and who leads a subcommittee that oversees the companies. ''Being underfunded does not explain how a glowing report of Freddie's operations was released only hours before the managerial upheaval that followed. This is not world-class regulatory work.''

    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.


    http://query.nytimes.com/gst/fullpa...2575AC0A9659C8B63&sec=&spon=&pagewanted=print
     
  9. top gun

    top gun New Member

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    First you're silly with all the "Messiah & Lord" stuff. The fact Senator Obama is intelligent and the best candidate for a job doesn't make him anything more than that... but that's kinda important right now if you look around and see what Republican policy and George Bush has done to our country... and McSame is worse because he's all that with an itchy trigger finger and ZERO competent back up in Palin.

    I mean how bad is the republican Party when they acknowledge that their only hope is to run against THEMSELVES!:D

    I mean that is pretty bad you have to admit.

    REPUBLICAN CAMPAIGN AD:

    Who's been running this show, how'd everything get so F'd up. We will fight every day to undo the terrible mistakes of our former President and the Republicans. 6 years out of the last 7+ these yahoos in control of Congress have helped this President take us down this road of destruction and I won't take it anymore!


    I'm John McSame a member of that Republican Congress and biggest supporter of George Bush and I approved this message.:D
     
  10. Pandora

    Pandora Well-Known Member

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    McCain knew this fanny mae and Freddy Mac stuff was coming, he warned us in 2005. Even Bush talked about them by name in 2003

    Now it’s true your messiah was not in the Senate in 2003 but he was in 2005, how do you think he voted on McCain’s bill?

    Funny that you totally ignored that in your post

    And you think lord messiah is silly, probably so but it was 4 uber dems who reminded us last week and continue to remind us over and over that he is unlike everyone else. I have come to truly believe you all worship him.

    Jesus was a community organizer like Obama.......

    Ok fine, If Lord Obama’s "followers" want to keep reminding me they think he is a freaking messiah I will keep giving them what they want. Apparently you personally don’t like to be reminded that your Messiah actually likes being treated like a messiah, sorry but get used to it.
     
  11. The Scotsman

    The Scotsman Well-Known Member

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    ............M'kay.........In order to be taken seriously on this board please make some form of non-partisan explanation that could possibly explain this................and I'm sorry to say this but .........this stupid statement!!!!!!!!!!!!!!
     
  12. top gun

    top gun New Member

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    Oh pleeeeeeeease! John McSame can't find his own shoes let alone anything else and if everybody knew all about it this DEPRESSION they were leading us to... how about stopping it? Because it's just a fact that Republicans have had absolute power 6 of the last 7+ years and still have a Republican President in office.

    These guys are as asleep at the wheel on the economy as they were on 9-11. Totally incompetent and you know it!


    That's a true statement to point out to everyone how ignorant it is for Republicans to be bashing hard working at little pay people who do outreach work & provide help to people less fortunate or who have had their job shipped overseas.

    Doesn't bother me... just makes you look mean spirited and clueless because nobody thinks that way.

    There are 2 candidates. One is George Bush with even a more itchy trigger finger... that would be John McSame.

    The other is a highly intellegent, calm, deliberate rational person providing some hope that we can turn around what is now on the front page every single day called THE REPUBLICAN BUSH MESS!

    I don't see the religious context in any of that. I think if you're seriously looking for a fair comparison let's go to the cartoon world.

    John Elmer Fud McCain v. Bugs Bunny Obama! Be vairwe vairwe quiet... he's hunting wabits... he he he he!
    :)
     
  13. Pandora

    Pandora Well-Known Member

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    If you don’t like your Messiah to be called lord, you should write a letter to your higher ups and tell them to quit comparing him to Jesus, and quit talking about him like he can walk on water. The rest of us will follow suit.


    Congress has been run by Nancy Pelosi for the last 2 years. It’s not helped. They have passed the least amount of legislation in her congress than any congress in history, it’s actually a record on two fronts, its also the most unpopular congress in history. John McCain co sponsored a bill that would have kept Freddy and Fanny from doing what they did. He can’t make the rest of congress vote for it. Read his proposal, it was dead on.
     
  14. Pandora

    Pandora Well-Known Member

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    Did you even read it? If it were possible I would say he wrote it yesterday it was dead on.

    Top Gun, Go through what he said and show me where he was wrong ok? I would like to know where you think he was off base.
     
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