US charges ex-Fannie, Freddie CEOs with fraud

[edthecynic]

Don't you mean BUSH in chains?

These crooks are Bush appointees and Mudd was part of Bush's 2004 reelection campaign, which centered around no down payment loans to minorities.

That would be Clinton you fucking Bozo...

Mudd to Fannie in 2000.
Syron to Freddie in 2003.

So maybe we stop this partisan BS? Well of course not!

Mudd became CEO of Fannie in 2005, he was interim CEO in 2004!!! Clinton was long gone. Bush owns the housing crisis.

 

[Mustang]

US charges ex-Fannie, Freddie CEOs with fraud - Yahoo! Finance


Anyone else hoping this leads to a Merry Christmas with Franks in chains?

Or is it just me?

It's a civil, not a criminal case. But I wonder how F & F could be guilty considering that they weren't (and are not) mortgage originators.

 

[edthecynic]

Recall who "engineered" the financial crisis......Bill Clinton, Dodd, Frank. They passed the "Community Reinvestment Act" whereby the unqualified were given mortgages, by banks forced by the government to give the loans, who promptly defaulted, which directly led to the financial crisis.

If this is NOT the root cause of the financial crisis, please post an alternate theory. I have tons of facts to provide.

The CRA had nothing to do with the Bush Housing Crash, and you know it. The CRA stopped banks from refusing to give loans to QUALIFIED minorities, but to racists no minority is ever qualified for anything.

It was Bush's Dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules to allow no downpayment loans for more than the house was worth to people with bad credit who could not keep up with the payments and who were at least 20% below the standard of living for the neighborhood they were buying into. Bush will always own the housing crash.

 

[Two Thumbs]

Recall who "engineered" the financial crisis......Bill Clinton, Dodd, Frank. They passed the "Community Reinvestment Act" whereby the unqualified were given mortgages, by banks forced by the government to give the loans, who promptly defaulted, which directly led to the financial crisis.

If this is NOT the root cause of the financial crisis, please post an alternate theory. I have tons of facts to provide.

CRA only applied to chartered banks, not investment entities. The firms responsible were never affected by it.

Shame on you for "Thanking" that idiocy, TT.

bite me fuzzy pig boi!



CRA was a piece of a pie that has many slices in it.

The CYA came later and made it hard to figure out what was the last straw and who knew what when.

Franks had to know though. He was the G-man in charge and should have blown the whistle.

 

[Two Thumbs]

US charges ex-Fannie, Freddie CEOs with fraud - Yahoo! Finance


Anyone else hoping this leads to a Merry Christmas with Franks in chains?

Or is it just me?

It's a civil, not a criminal case. But I wonder how F & F could be guilty considering that they weren't (and are not) mortgage originators.

Thanks for bursting my holiday cheer bubble.


they would be acting like money launderers. they, allegedly, knew what they were doing was wrong, Franks sat as over site.... etc

 

[Dot Com]

I notice that no Rightie has mentioned Gingrich getting his obscene wad of cash on the deal

 

[Intense]

It's about time it's brought to light. How else do we correct course?

From your link.

WASHINGTON (AP) -- Two former CEOs at mortgage giants Fannie Mae and Freddie Mac on Friday became the highest-profile individuals to be charged in connection with the 2008 financial crisis.

In a lawsuit filed in New York, the Securities and Exchange Commission brought civil fraud charges against six former executives at the two firms, including former Fannie CEO Daniel Mudd and former Freddie CEO Richard Syron.

The executives were accused of understating the level of high-risk subprime mortgages that Fannie and Freddie held just before the housing bubble burst.

"Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was," said Robert Khuzami, SEC's enforcement director.

Khuzami noted that huge losses on their subprime loans eventually pushed the two companies to the brink of failure and forced the government to take them over.

US charges ex-Fannie, Freddie CEOs with fraud - Yahoo! Finance

 

[Intense]

US charges ex-Fannie, Freddie CEOs with fraud - Yahoo! Finance


Anyone else hoping this leads to a Merry Christmas with Franks in chains?

Or is it just me?

It's a civil, not a criminal case. But I wonder how F & F could be guilty considering that they weren't (and are not) mortgage originators.

The Mortgages would not have happened without them Insuring them.

 

[Intense]

I notice that no Rightie has mentioned Gingrich getting his obscene wad of cash on the deal

Which deal? Do you have links? Can you show any violations or laws being broken?

 

[kiwiman127]

I notice that no Rightie has mentioned Gingrich getting his obscene wad of cash on the deal

Which deal? Do you have links? Can you show any violations or laws being broken?

You are right! It's impossible to tie Newt with any laws broken.
It's just like people whining about Dodd-Frank, all it's political driven assumptive folklore.

 

[PoliticalChic]

Recall who "engineered" the financial crisis......Bill Clinton, Dodd, Frank. They passed the "Community Reinvestment Act" whereby the unqualified were given mortgages, by banks forced by the government to give the loans, who promptly defaulted, which directly led to the financial crisis.

If this is NOT the root cause of the financial crisis, please post an alternate theory. I have tons of facts to provide.

The CRA had nothing to do with the Bush Housing Crash, and you know it. The CRA stopped banks from refusing to give loans to QUALIFIED minorities, but to racists no minority is ever qualified for anything.

It was Bush's Dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules to allow no downpayment loans for more than the house was worth to people with bad credit who could not keep up with the payments and who were at least 20% below the standard of living for the neighborhood they were buying into. Bush will always own the housing crash.

BeetsAndSpinach is a gift!
A gift, I tell you!

So wrong, so often!
And, he's done it again....

Here, the actual truth and the actual blame: Democrats.

Read it and weep.
1. 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.

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.
New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NYTimes.com

2. Democrats blocked both attempts to reform Fannie Mae.
Thanks to Sweetness &Light which has printed these two articles in full.

Barack Obama is out trying to blame this all on the Bush Administration, as usual, and scare people as much as he can, — so that he can promise to “rescue” them. But his solutions are the worst possible, and his speeches are irresponsible.

First Trust economists note that:


The most important thing to remember is that the emphasis belongs on the word financial. These financial market problems are not a result of general market weakness, otherwise known as a recession. In fact, real GDP has grown 2.2% in the past year and accelerated to a 3.3% annualized growth rate in the second quarter.

The economy is not taking down investment banks; lousy lending standards and the excessive use of leverage are taking down investment banks.

This whole thing had its’ beginnings in a well-intentioned law during the Carter Administration, The Community Redevelopment Act, which was designed to encourage minority homeownership. President Clinton, influenced by multiculturalism, encouraged it further by dictating where mortgage lenders could lend. Tough new regulations required that lenders increase their lending in high-risk areas where they had no choice but to lower lending standards to make loans that sound business practices had previously rejected. Clinton cronies Franklin Raines and Jamie Gorelick became multimillionaires through their supervision of the quasi-governmental agencies that came to manage the real estate market in America.

Low interest rates in the marketplace persuaded Investment banks to purchase packages of sub-prime loans, and risky decisions and a little greed, of course, let them use too much leverage.

This is not the first time that Investment Banks have failed and disappeared. E.F. Hutton, Goodbody & Company, and Kidder Peabody are three of the vanished. Today’s Investment Banks did not do anything against the law, they just exercised bad business judgment.

Unemployment in the economy is largely confined to the housing crisis with home builders and related trades suffering, as well as the auto industry and related trades and now there will be some investment bankers on the unemployment line.

They are in trouble because they are affected by unfortunate laws made by a Congress that does not always understand what they do. Remember that most congressmen never read the bills that they sign. Congress has long been inclined to well-intentioned regulation to help the poor and save the planet. They fall in love with the goals, and never consider or learn about the consequences of what they do.

It seems kind to help a poor family get into a house larger than they can really afford, with less of a down payment, but it isn’t really kind. Kindness would be helping them to learn how to work hard and save their money, and how to move up to better jobs. Government can make it easier for private industry to build smaller, more affordable houses, without telling them what kind of houses to build, where to build them and under what qualifications to sell them.

The great problem with Socialism is their pursuit of “social justice”. They believe that they can make the poor — not poor — by taking money from the well-to-do and giving it to the poor. Never works. Though there is extraordinary mobility in our society, those who are induced into dependency on government are inclined to lose that mobility.

Barack Obama, in all his economic plans, is extraordinarily invested in the pursuit of “social justice”. That should be a serious warning.
Bush and McCain each tried to reform Fannie Mae. Democrats Blocked them both times. « American Elephants

 

[PoliticalChic]

I notice that no Rightie has mentioned Gingrich getting his obscene wad of cash on the deal

Which deal? Do you have links? Can you show any violations or laws being broken?

You are right! It's impossible to tie Newt with any laws broken.
It's just like people whining about Dodd-Frank, all it's political driven assumptive folklore.

So sad....here you are trying to keep up, yet it remains impossible as you understand
neither politicis nor the differences between the two sides.

Keep plodding along in that 'Can't We All Just Get Along' miasma.

 

[Quantum Windbag]

US charges ex-Fannie, Freddie CEOs with fraud - Yahoo! Finance


Anyone else hoping this leads to a Merry Christmas with Franks in chains?

Or is it just me?

Wait a minute, I thought Fannie and Freddie had nothing to do with the mess and that it was all Wall Street's fault.

 

[edthecynic]

Recall who "engineered" the financial crisis......Bill Clinton, Dodd, Frank. They passed the "Community Reinvestment Act" whereby the unqualified were given mortgages, by banks forced by the government to give the loans, who promptly defaulted, which directly led to the financial crisis.

If this is NOT the root cause of the financial crisis, please post an alternate theory. I have tons of facts to provide.

The CRA had nothing to do with the Bush Housing Crash, and you know it. The CRA stopped banks from refusing to give loans to QUALIFIED minorities, but to racists no minority is ever qualified for anything.

It was Bush's Dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules to allow no downpayment loans for more than the house was worth to people with bad credit who could not keep up with the payments and who were at least 20% below the standard of living for the neighborhood they were buying into. Bush will always own the housing crash.

BeetsAndSpinach is a gift!
A gift, I tell you!

So wrong, so often!
And, he's done it again....

Here, the actual truth and the actual blame: Democrats.

Read it and weep.
1. 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.

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.
New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NYTimes.com

2. Democrats blocked both attempts to reform Fannie Mae.
Thanks to Sweetness &Light which has printed these two articles in full.

Barack Obama is out trying to blame this all on the Bush Administration, as usual, and scare people as much as he can, — so that he can promise to “rescue” them. But his solutions are the worst possible, and his speeches are irresponsible.

First Trust economists note that:


The most important thing to remember is that the emphasis belongs on the word financial. These financial market problems are not a result of general market weakness, otherwise known as a recession. In fact, real GDP has grown 2.2% in the past year and accelerated to a 3.3% annualized growth rate in the second quarter.

The economy is not taking down investment banks; lousy lending standards and the excessive use of leverage are taking down investment banks.

This whole thing had its’ beginnings in a well-intentioned law during the Carter Administration, The Community Redevelopment Act, which was designed to encourage minority homeownership. President Clinton, influenced by multiculturalism, encouraged it further by dictating where mortgage lenders could lend. Tough new regulations required that lenders increase their lending in high-risk areas where they had no choice but to lower lending standards to make loans that sound business practices had previously rejected. Clinton cronies Franklin Raines and Jamie Gorelick became multimillionaires through their supervision of the quasi-governmental agencies that came to manage the real estate market in America.

Low interest rates in the marketplace persuaded Investment banks to purchase packages of sub-prime loans, and risky decisions and a little greed, of course, let them use too much leverage.

This is not the first time that Investment Banks have failed and disappeared. E.F. Hutton, Goodbody & Company, and Kidder Peabody are three of the vanished. Today’s Investment Banks did not do anything against the law, they just exercised bad business judgment.

Unemployment in the economy is largely confined to the housing crisis with home builders and related trades suffering, as well as the auto industry and related trades and now there will be some investment bankers on the unemployment line.

They are in trouble because they are affected by unfortunate laws made by a Congress that does not always understand what they do. Remember that most congressmen never read the bills that they sign. Congress has long been inclined to well-intentioned regulation to help the poor and save the planet. They fall in love with the goals, and never consider or learn about the consequences of what they do.

It seems kind to help a poor family get into a house larger than they can really afford, with less of a down payment, but it isn’t really kind. Kindness would be helping them to learn how to work hard and save their money, and how to move up to better jobs. Government can make it easier for private industry to build smaller, more affordable houses, without telling them what kind of houses to build, where to build them and under what qualifications to sell them.

The great problem with Socialism is their pursuit of “social justice”. They believe that they can make the poor — not poor — by taking money from the well-to-do and giving it to the poor. Never works. Though there is extraordinary mobility in our society, those who are induced into dependency on government are inclined to lose that mobility.

Barack Obama, in all his economic plans, is extraordinarily invested in the pursuit of “social justice”. That should be a serious warning.
Bush and McCain each tried to reform Fannie Mae. Democrats Blocked them both times. « American Elephants

BULLSHIT! As usual from you. The Dems didn't block anything. The bill passed in the house, but the GOP controlled Senate didn't even bring the bill up for a vote. That's right, the GOP blocked the bill in the senate.
Try again with some more right-wing copy and paste bullshit.

 

[Mustang]

US charges ex-Fannie, Freddie CEOs with fraud - Yahoo! Finance


Anyone else hoping this leads to a Merry Christmas with Franks in chains?

Or is it just me?

It's a civil, not a criminal case. But I wonder how F & F could be guilty considering that they weren't (and are not) mortgage originators.

The Mortgages would not have happened without them Insuring them.

Fannie and Freddie provide a secondary market in home mortgages, purchasing mortgages from the lenders who originated them. They hold some of these mortgages, and some are "securitized" -- sold in the form of securities which Fannie and Freddie, which are Gov't Sponsored Entities (GSEs), guaranteed.

But the mortgages did NOT originate with F or F, and rating agencies were complicit in giving mortgage based derivatives triple A ratings because THEY GOT PAID TO DO SO by the mortgage originators.

 

[JoeB131]

A stupid kid can rob a 7-11, and get 10 to 20. These millionaires robbed millions of Americans of their jobs and homes. And got 10 to 100 million in bonuses. Good ol' American Justice.

Yes, that is wrong.

Although the kid usually used violence to rob the 7-11, the millionaires did it "legally".
Frankly, I'm all for prosecuting them, but let's not pretend we weren't all part of the larger problem.

Maybe..maybe not.

The fact that the government hasn't pursued any sorts of investigations into the private side of the calamity really stinks.

How come in your unique universe, any problem that occurred between 2001 and 2008 is "The Bush Administrtaion", but anything that happens or fails to happen 2009 and after is some shadowy organization called "the government"?

The OBAMA Administration hasn't persued any sorts of investigations into the private side of the calamity. Probably because they are amongst his biggest donors.

But when he's bought, he stays bought. It's the Chicago Way.

 

[PoliticalChic]

The CRA had nothing to do with the Bush Housing Crash, and you know it. The CRA stopped banks from refusing to give loans to QUALIFIED minorities, but to racists no minority is ever qualified for anything.

It was Bush's Dec 2003 American Dream Downpayment Initiative (ADDI) that changed the rules to allow no downpayment loans for more than the house was worth to people with bad credit who could not keep up with the payments and who were at least 20% below the standard of living for the neighborhood they were buying into. Bush will always own the housing crash.

BeetsAndSpinach is a gift!
A gift, I tell you!

So wrong, so often!
And, he's done it again....

Here, the actual truth and the actual blame: Democrats.

Read it and weep.
1. 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.

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.
New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NYTimes.com

2. Democrats blocked both attempts to reform Fannie Mae.
Thanks to Sweetness &Light which has printed these two articles in full.

Barack Obama is out trying to blame this all on the Bush Administration, as usual, and scare people as much as he can, — so that he can promise to “rescue” them. But his solutions are the worst possible, and his speeches are irresponsible.

First Trust economists note that:


The most important thing to remember is that the emphasis belongs on the word financial. These financial market problems are not a result of general market weakness, otherwise known as a recession. In fact, real GDP has grown 2.2% in the past year and accelerated to a 3.3% annualized growth rate in the second quarter.

The economy is not taking down investment banks; lousy lending standards and the excessive use of leverage are taking down investment banks.

This whole thing had its’ beginnings in a well-intentioned law during the Carter Administration, The Community Redevelopment Act, which was designed to encourage minority homeownership. President Clinton, influenced by multiculturalism, encouraged it further by dictating where mortgage lenders could lend. Tough new regulations required that lenders increase their lending in high-risk areas where they had no choice but to lower lending standards to make loans that sound business practices had previously rejected. Clinton cronies Franklin Raines and Jamie Gorelick became multimillionaires through their supervision of the quasi-governmental agencies that came to manage the real estate market in America.

Low interest rates in the marketplace persuaded Investment banks to purchase packages of sub-prime loans, and risky decisions and a little greed, of course, let them use too much leverage.

This is not the first time that Investment Banks have failed and disappeared. E.F. Hutton, Goodbody & Company, and Kidder Peabody are three of the vanished. Today’s Investment Banks did not do anything against the law, they just exercised bad business judgment.

Unemployment in the economy is largely confined to the housing crisis with home builders and related trades suffering, as well as the auto industry and related trades and now there will be some investment bankers on the unemployment line.

They are in trouble because they are affected by unfortunate laws made by a Congress that does not always understand what they do. Remember that most congressmen never read the bills that they sign. Congress has long been inclined to well-intentioned regulation to help the poor and save the planet. They fall in love with the goals, and never consider or learn about the consequences of what they do.

It seems kind to help a poor family get into a house larger than they can really afford, with less of a down payment, but it isn’t really kind. Kindness would be helping them to learn how to work hard and save their money, and how to move up to better jobs. Government can make it easier for private industry to build smaller, more affordable houses, without telling them what kind of houses to build, where to build them and under what qualifications to sell them.

The great problem with Socialism is their pursuit of “social justice”. They believe that they can make the poor — not poor — by taking money from the well-to-do and giving it to the poor. Never works. Though there is extraordinary mobility in our society, those who are induced into dependency on government are inclined to lose that mobility.

Barack Obama, in all his economic plans, is extraordinarily invested in the pursuit of “social justice”. That should be a serious warning.
Bush and McCain each tried to reform Fannie Mae. Democrats Blocked them both times. « American Elephants

BULLSHIT! As usual from you. The Dems didn't block anything. The bill passed in the house, but the GOP controlled Senate didn't even bring the bill up for a vote. That's right, the GOP blocked the bill in the senate.
Try again with some more right-wing copy and paste bullshit.

I can always tell when you know you are wrong by the language you use...

Here's some more for you to chew on:

"That Democrats in Congress blocked attempts to reform Freddie and Fannie. The Bush Administration wemt to Congress on three separate occasions asking that regulation of Freddie and Fannie be tightened.

"Prominent Democrats ran Fannie Mae, the same government-sponsored enterprise (GSE) that donated campaign cash to top Democrats. … According to an article by Kathleen Day in the Oct. 8, 2003, Washington Post, Frank opposed giving the Bush administration the right to approve or disapprove business activities that "could pose risk to the taxpayers." He told the Post he worried the Treasury Department "would sacrifice activities that are good for consumers in the name of lowering the companies’ market risks."

Just a month before, Frank had aggressively thwarted reform efforts by the Bush administration. He told The New York Times on Sept. 11, 2003, Fannie Mae and Freddie Mac’s problems were "exaggerated," a gross miscalculation some five years later with costs estimated to be in the hundreds of billions.

"These two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis," Frank said to the Times. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." http://www.businessandmedia.org…

Democrats took over Congress in 2006 and not only failed to recognize the economic problems rooted in Fannie and Freddie, they completely blocked Bush Administration efforts to regulate these out-of-control institutions."
FactsPlusLogic: What past policies got us into the financial crisis?


BeetsAndSpinach....the eternal error!

 

[kyzr]

p.s "follow the money" from F & F to their political protectors, list the donation amounts and to whom they went...

 

[Quantum Windbag]

It's a civil, not a criminal case. But I wonder how F & F could be guilty considering that they weren't (and are not) mortgage originators.

The Mortgages would not have happened without them Insuring them.

Fannie and Freddie provide a secondary market in home mortgages, purchasing mortgages from the lenders who originated them. They hold some of these mortgages, and some are "securitized" -- sold in the form of securities which Fannie and Freddie, which are Gov't Sponsored Entities (GSEs), guaranteed.ou?

But the mortgages did NOT originate with F or F, and rating agencies were complicit in giving mortgage based derivatives triple A ratings because THEY GOT PAID TO DO SO by the mortgage originators.

You live in a fantasy world.

 

[whitehall]

Maybe Barney Frank saw it coming and that's why he bailed out. Congressman Frank wasn't a CEO but as chairman of the powerful House Banking committee he had oversight responsibility for Fannie during the time it collapsed. Shouldn't somebody ask him why he told the American public that Fannie was doing fine when it was on the verge of failure?