Fannie Mae Democratic Liberals – Back to Work In Washington

Jim Johnson – Former Fannie CEO is back with Obama Campaign:

THE WALL STREET JOURNAL 

October 14, 2004     

Fannie Mae Liberals

There were many moments of high entertainment during last week’s House hearings on Fannie Mae’s creative accounting. But our favorite was the Mister Magoo performance given by Barney Frank (D., Massachusetts) after learning that Fannie had handed out $245 million in bonuses over five years. Mr. Frank chided Fannie CEO Frank Raines and CFO Tim Howard, saying, “At the level of compensation you get, we ought to be able to count on you to do your very best without additional incentives.”

Here’s a case of misplaced moral outrage if we’ve ever seen one. Mr. Franks is mad about the salaries when he really should be mad at the rigged political game that has made them possible. Fannie’s regulator, the Office of Federal Housing Enterprise Oversight, has reported that Fannie has been cooking its books. Add that to the increasing evidence that Fannie has been ignoring its mission to provide affordable housing, and we wonder if Mr. Frank doesn’t need an eye checkup.

Ditto for the good liberals in the Congressional Black Caucus. Members of this group are often the loudest defenders of Fannie and her brother, Freddie Mac. Can it be that the annual donations made by the Fannie Mae Foundation to the Caucus have blurred their vision too?

Maxine Waters (D., California) cooed all over Mr. Raines, and Clay Lacy (D., Missouri) played the race card by calling the hearings a “political lynching” of Mr. Raines, who is African-American. Are CEOs not supposed to be accountable simply because they’re persons of color? By the way, Roger Barnes, the whistle-blower who was fired by Fannie after complaining about its accounting procedures, is also black. In a more consistent world — where political principles mean something — these liberals would be scorching a company that used a government subsidy to enrich its own executives. Instead, they’re defending it.

The default position for Fannie’s defenders is that the giant mortgage finance company provides more affordable housing. At least that’s Fannie’s declared mission and that’s why the government offers it an implicit subsidy. But as study after study has demonstrated, Fannie does not provide homeowners with significant savings.

The Federal Reserve found that about half of the government subsidy going to Fannie and Freddie is retained by the company. Studies conclude that the tiny amount of subsidy that actually reaches borrowers does not increase homeownership.

To be sure, Mr. Franks is right that Fannie’s executive compensation is rich by any standards. When a government-sponsored company pays its top 21 executives more than $1 million each in 2002 (and three of them are lobbyists), that fact does bear some reflection.

And, aside from the evidence that Fannie was cooking its books to trigger big bonuses, there’s also the issue of performance. Mr. Raines’s 2003 compensation was over $20 million. That’s about $14 million more than the median for CEOs of very large companies. What did Mr. Raines do to deserve this giant sum? Not much. In the five years that Mr. Raines has been at the helm, Fannie’s cumulative shareholder return, including reinvested dividends, has been 4% compared with the 23% achieved by the S&P financial sector.

The evidence is overwhelming that Fannie only pretends to be a tribune of the poor. Not only does the company use its implicit subsidy to enrich its executives, some of that money is funneled into the Fannie Mae Foundation, which, no surprise, motors it back out to favorite charities of Fannie board members. It’s an odd sort of liberal principle that endorses private profits at public risk.

Breaking News: Democrat Barney Frank Confirms There Never Was A Deal – That Dems Lied

The Democratic Chairman of the House Banking Committee has now confirmed that there was NO DEAL as previously announced. That Democratic Spin concerning Senator John McCain and the scheduled meeting at the White House was in fact false.

In a joint interview with Democratic Speaker of The House Pelosi, Frank admitted that House Republicans were “boycotting” the negotiations and had not attended several negotiating sessions. House Republicans welcomed McCain’s trip to Washington.

At least the incredible spin on Thursday’s “DEAL – NO DEAL” can be put to rest – at least it can be put to rest when the Democratic Surrogates for Obama get their new talking points.

Its tough to get caught telling a whopper like “We have a Deal” when 1/2 of the Republicans in Washington are not even attending the negotiations.

Republican Senator Shelby: There was no deal – http://www.foxnews.com/video-search/m/21023332/real_structural_change.htm?q=Bailout+deal

What is Congress Thinking – “Bailout” Doesn’t Prohibit “NINJA” Or “LIAR LOANS”

It may have taken years to get any publicity about the loans nicknamed “NINJA” (No Income, No Job, No Assets) and LIAR (where a lender does not require “documentation” of employment, income or credit history) but now that these loans have been publicized one might imagine that the Congress would “prohibit” lending institutions from continuing to follow the practices that allowed these loans to be issued.

Watch how this got started: http://www.foxnews.com/video-search/m/20997113/blame_game.htm?q=blame+game

If you assume that such a prohibition would be included in a $700 Billion bailout, your wrong.

The Boston Federal Reserve wrote a Manual to provide “Mortgage Underwriting Guidelines”. Those guidelines “loosened” the traditional practices used to determine who qualified for a mortgage and how much they could borrow. READ THE INTERESTING STORY HERE: http://www.foxnews.com/story/0,2933,424945,00.html

Fannie Mae and Freddie Mac actually used these guidelines to threaten banks with litigation if they did not adopt the ideologically developed guidelines. You might ask which banks were the biggest supporters – you could start with Countywide and run down the list to Bear Stearns. They are all gone now and we, the Taxpayers, are being asked to pick up the bill  ….   http://www.foxnews.com/story/0,2933,424945,00.html  

The Democrats refuse to acknowledge that “NINJA” and “LIAR LOANS” need to end – They won’t admit that there great ideologic experiment has failed. 

While there may have been all sorts of other horrendous behaviors associated with this Crisis, the Crisis started with handing out bad loans.

If we don’t stop handing the bogus loans that caused this Crisis in the first place, Congress might as well throw our $700 Billion down a rat hole.

To use a medical anology – the proposed “Bailout” treats the patients symptoms but not the illness. The patient will look better, but the disease will kill the patient if the real disease isn’t treated. You can’t cure a cancer with aspirin.

Contact Your Congressperson & Senator And Tell Them No More NINJA Or LIAR LOANS:

Contact Your Senators Here:  http://www.emailyoursenator.com/senators.html  Click on your Senators, Select the Contact Folder and then  click on the email address.

Contact Congresspeople: http://www.house.gov/zip/ZIP2Rep.html You’ll need your zip  code

BREAKING VIDEO: Jim Johnson, of Fannie Mae Infamy, Back With Obama Campaign?

Jim Johnson Back With Obama Campaign?

Thursday, September 25, 2008

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.

Call the “John Gibson Radio Show” starting at 6 p.m. ET. Find it at XM 168 or Sirius 145 or go to www.gibsonradio.com.

And, send your comments to myword@foxnews.com, we post many of them at John Gibson Radio.

VIDEO: Letterman Pokes Fun At McCain For Cancelling “Late Show” Appearance

NEW YORK – “Late Show” host David Letterman kept up a verbal assault on John McCain Thursday, saying he felt like an “ugly date” because the GOP presidential candidate backed out of a scheduled appearance on his talk show.

The comic was unhappy when McCain sat for an interview with Katie Couric instead of him Wednesday — and even more perturbed to learn that McCain didn’t leave New York until Thursday.

He said he felt like a “patriot” to let McCain off his commitment to deal with the economy and “now I’m feeling like an ugly date.”

“That’s what I feel like, I feel like an ugly date,” he said. “I feel used. I feel cheap. I feel sullied.”

McCain spokeswoman Nicolle Wallace said Thursday that the campaign “felt this wasn’t a night for comedy.”

“We deeply regret offending Mr. Letterman, but our candidate’s priority at this moment is to focus on this crisis,” Wallace said on NBC’s “Today” show.

The late-night comic banged away at McCain on Thursday from the opening of his monologue.

“You’re here on a good night,” he told the audience. “So far none of our guests have canceled.”

He talked about daredevil David Blaine’s feat of hanging upside down in New York’s Central Park for 60 hours.

“They just left the guy hanging there,” he said. “It’s the same thing McCain did to me last night.”

He described socialite Paris Hilton — Thursday’s guest whose celebrity was once used in a McCain campaign ad to mock Obama — as McCain’s first choice for a running mate.

“Here’s how it works: you don’t come to see me? You don’t come to see me? Well, we might not see you on Inauguration Day,” Letterman said.

Noting that McCain wanted to postpone Friday’s first debate with Barack Obama, Letterman said running mate Sarah Palin wanted to put off her debate with Democrat Joe Biden until after Election Day. Letterman said McCain taking Palin to meet world leaders at the United Nations was like “take-your-daughter-to-work day.”

Letterman’s Top 10 list was “surprising facts about Sarah Palin,” read by citizens of Wasilla, Alaska, where she was once mayor.

No. 10: Palin “sometimes calls John McCain grandpa.”

Later in the show, Letterman couldn’t resist another mention of “that John McCain” while chatting with Hilton, who replied, “I heard he dissed you. He dissed me.”

Milking the moment, Letterman consoled her: “You had a little run-in with him, too, didn’t you?”

Watch the Video: http://lateshow.cbs.com/latenight/lateshow/

VIDEO – The Financial Mess Timeline – Who did what when – Hear Barney Frank “No Problems With Fannie”

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