This one gets filed under throwing rocks from glass houses.
Jim Johnson, a prominent Democrat and former Fannie Mae CEO, is evidently back working on the Obama campaign after he was very publicly dumped a few weeks ago.
Johnson, who was paid millions while he ran Fannie Mae into bailout mode, is reported by Politico’s Ben Smith to be working with Obama insider Tom Daschle on a special meeting of former Hillary supporters next month.
Smith’s political blog reports Daschle sent out an e-mail Wednesday afternoon to a select list of D.C. Hillary supporters, including John Kerry, James Carville and Richard Holbrooke, inviting them to be updated on the Obama campaign in a special breakfast huddle.
Daschle’s note says: “Jim Johnson and I have scheduled another informal breakfast discussion and update on the campaign early next month.”
Johnson has been named in press reports lately as one of three prominent Democrats who ran Fannie Mae and made millions in bonuses during Fannie’s drunken sailor mortgage binge, when it bought billions in bad mortgages which led to today’s economic meltdown.
Johnson was forced to step aside from Obama when it was revealed he had helped himself to a sweetheart insider personal mortgage from Countrywide CEO Anthony Mozilo.
So who else? Well, former Fannie Mae CEO Franklin Raines, another million-dollar bonus baby, was advising Obama on housing issues.
The Obama campaign — and Democrats in general — are up to their eyeballs in the Fannie and Freddie meltdown.
Meanwhile the Obama campaign is attacking McCain campaign manager Rick Davis for once doing lobbying work for Fannie Mae and Freddie Mac.
So why is Jim Johnson still working for the Obama campaign while it is throwing rocks at McCain? Should Obama move out of that glass house?
Why am I reporting this? Because the mainstream media won’t.
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Fannie Mae CEO to Democrats: You Are Our ‘Family’ and ‘Conscience’
By P.J. Gladnick (Bio | Archive)
September 18, 2008 – 09:22 ET
this video of the interim Fannie Mae CEO, Daniel Mudd, addressing the Congressional Black Caucus, including Barack Obama, at their swearing-in ceremony in 2005. Although this video is spreading quickly in the blogosphere, you have yet to see or hear anything about it in the MSM. As you can see in the video, Mudd talks about the problems of Fannie Mae yet that didn’t keep Obama and other Democrats from taking large contributions from that organization or doing anything to try to fix it. Here is a transcript of CEO Mudd addressing the Democrats:
Good morning members of the Congressional Black Caucus. I am humbled to come here today to reaffirm the friendship and partnership between Fannie Mae and the Congressional Black Caucus. Fannie Mae is determined to keep tearing down the barriers to deliver on the American dream and that means we need to work together with the CBC. So many of you have been good friends to Fannie Mae and our mission. You’ve been friends through thick and thin. We have indeed come upon a difficult time for Fannie Mae. There is much to be done inside my company and I humbly ask you to help us and to help me. If there are areas where we are missing. If there are areas where we could do better, we’d like to hear it from our friends and I’d be so bold as to say our family first.
It is true that Fannie Mae has lent more money to more minorities and more underserved individuals than any single company in history.
We will work hard inside our company to resolve the serious matters before us to put our house in order and to forge a new future. And all the while you will see Fannie Mae reaching out and listening to the caucus. Over a century of endeavor you have earned the reputation as the conscience of Congress. In many ways I want to tell you today you are also the conscience of Fannie Mae. Keeping us on course to serve those who need serving the most.
As of this writing, a check on Google News shows NO news outlet has so much as mentioned this video despite the fact of Obama being present and later receiving $126,349 from Fannie Mae. Ask yourself this, if the CEO of Fannie Mae had addressed a similar “family” speech to a group of congressional Republicans who had received big donations from that organization, do you not think the video would have already appeared on the nightly news of the major networks?
Five Key Players In Washington who had chances to prevent the Financial Crisis but who, by their actions or inactions helped to bring down Wall Street.
Senator Christopher Dodd,
Democrat from Connecticut. Dodd has been in the Senate for 28 years. Dodd has served as Chairman of the Democratic National Committee. Dodd is Chairman of the Senate Banking Committee. As Chairman he had responsibility for acting as a “watch-dog” of Fannie Mae and Freddie Mac. Dodd has responsibilty for assisting in the selection of the CEO’s who run Fannie Mae and Freddie Mac. Dodd was a leading contender to be Obama’s Vice Presidential selection until his receipt of VIP loans from Countywide Financial were disclosed. http://www.nydailynews. com/news/us_world/2008/06/14/2008-06- 14_dems_deny_knowing_loans_had_vip_rates.html
It has been reported that Dodd received $7,000,000 in loans from Countywide. Dodd’s Committee was responsible for overseeing Banks in the United States. Countrywide is one of the leading culprits responsible for the lending policies that brought on this Crisis. Countrywide is under FBI investigation for Securities Fraud. http://www.nydailynews.com/news/us_world/2008/06/14/2008-06-14_dems_deny_knowing_loans_had_vip_rates.html
The Government Watchdog Group, The Center For Responsive Politics, reports that Senator Dodd received more campaign contributions from Fannie Mae and Freddie Mac than any other Senator.
Dodd was a consistent opponent of the attempts to increase regualtion over Fannie Mae and Freddie Mac. Dodd opposed similar legislation that would have prevented the Enron collapse. Enron & Fannie Mae are examples of what happens when proper Accounting Practices are ignored. Both organizations collapsed. Dodd opposed accounting practices that would have prevented “NINJA” or “Liar” loans. To read about specific accounting practices see: http://www.foxnews.com/story/0,2933,424945,00.html
Wikipedia, a non-partisan web site, states the following about Dodd; The Center for Public Integritycriticized Dodd for “being the leading advocate in the Senate on behalf of the accountingindustry.”[11][12] Political consultant and commentator Dick Morriswrote that Dodd had received more from accounting firm Arthur Andersenthan any other Democrat and bore responsibility for trying to shield accounting firms from investor fraud liability in cases such as the Enron scandal.[13] Arthur Anderson was forced to surrender its license to conduct CPA business in the US. http://en.wikipedia.org/wiki/Christopher_Dodd.
Representative Barney Frank
Democrat Massachusetts, Frank has been in Congress for 27 years. As Chairman of the House Financial Services Committee, Frank “sits at the center of power”. http://en.wikipedia.org/wiki/Barney_Frank
In 2003, Frank rejected Bush administration and Congressional Republican efforts for the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis. [29] of the 1980′s. Under the plan a new agency would have been 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.[30]http://en.wikipedia.org/wiki/Barney_Frank
The site where this boast is posted, suggests that his action in opposing the regulation is a “badge of honor”. Imagine that – Barney Frank, the de-regulator.
“These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis,” Frank said. He added, “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
The legislation in question was aimed at creating additional “watchdogging” of Fannie Mae and Freddie Mac, watchdogging that would have prevented this Crisis. Frank also opposed the “watchdog” reforms presented by John McCain in 2002 and 2006. http://www.govtrack.us/congress/record.xpd?id=109-s20060525-16&bill=s109-
WATCH VIDEO REPORT: Johnson back with Obama Campaign:
A former aid to Walter Mondale, a former executive at Goldman Sachs andLehman Brothers, Johnson was an Executive Assistant for Vice President Walter Mondale (1977-1981) and a U.S. Senate staff member. Johnson also helped screen running mates for Democratic presidential nominees Walter Mondale in 1984 and John Kerry in 2004. http://www.associatedcontent.com/article/781141/barack_obama_taps_former_fannie_mae.html
The National Review suggested – “Look at the former Fannie Mae Chief Obama choose for the job (selecting Biden). …. specifically, look at the Office of Federal Housing Enterprise Oversight’s May 2006 report on mismanagement and corruption inside Fannie Mae, and you’ll see some interesting things about Johnson. Investigators found that Fannie Mae had hidden a substantial amount of Johnson’s 1998 compensation from the public, reporting that it was between $6 million and $7 million when it fact it was $21 million.”http://corner.nationalreview.com/post/?q=NWM3MDFkM2QwNzRjODk3NWZhZTc3OGIxNDQ4Nzc2NDc=
While he was at the in charge at Fannie Mae, Johnson acknowledged his goal, “”We are on course to meet the $1 trillion target we set, we’re ahead of schedule on the 11 initiatives put in place to carry out the commitment, and our efforts already have fundamentally transformed how millions of American families now gain access to the mortgage credit system.” The Trillion dollar commitment included the use of “NINJA” and “Liar Loans” http://www.highbeam.com/doc/1G1-18094342.html
In order to meet this 1 trillion target, Johnson oversaw the implementation of the accounting schemes that came to light during his successor, Franklyn Raines, term as Fannie CEO. http://www.minnpost.com/stories/2008/06/03/2078/obama_turns_to_trusted_political_insider_jim_johnson_for_key_campaign_role
Johnson hid part of his income, received preferential loans from a major lender invoved in this crisis and fostered the implementation of accounting practices that masked the sub-prime losses by stating the losses as assets.
Raines was forced to retire from this position at Fannie Mae when Regulators discovered severe irregulaties in accounting activities. At the time of his departure The Wall Street Journal noted, “Raines, who long defended the company’s accounting despite mounting evidence that it wasn’t proper, issued a statement conceding that “mistakes were made” and that he would assume responsibility as he had earlier promised. Reports indicate the company was under growing pressure from regulators to shake up its management in the wake of findings that the company’s books ran afoul of generally accepted accounting principles for four years.” http://www.washingtonpost.com/wp-dyn/content/discussion/2006/02/23/DI2006022301805.html
The Government noted, “The 101 charges reveal how the individuals improperly manipulated earnings to maximize theirbonuses, while knowingly neglecting accounting systems and internal controls, misapplying over twenty accounting principles and misleading the regulator and the public. The Notice explains how they submitted six years of misleading and inaccurate accounting statements and inaccurate capital reports that enabled them to grow Fannie Mae in an unsafe and unsound manner.” http://housingdoom.com/2006/12/18/fannie-charges/
Raines has been reported to be an Economic Advisor in the Barack Obama Campaign. At present the Obama Campaign denies that Raines is associated with the Campaign. At least two web sites have re-written prior bigraphies on Raines. The WikipediaBiography on Raines has been rewritten, deleting a claim that Raines was an Obama Advisor.http://en.wikipedia.org/wiki/Franklin_RainesThe Web site “Top Blacks, Positive Profiles of People of Color” has not only rewritten the Raines profile to delete such a reference, the profile is no longer available at the site.http://www.topblacks.com/Home.aspx
On June 16, 2006, Rep. Richard Baker, R-La., asked the Justice Department to investigate his allegations that two former Fannie Mae executives lied to Congress in October 2004 when they denied manipulating the mortgage-finance giant’s income statement to achieve management pay bonuses.http://www.usatoday.com/money/industries/banking/2006-06-14-fannie-execs_x.htm
