Posts Tagged ‘fannie mae’

One of the problems with LAWS in the USA…

December 21, 2011

This morning I was reading an article on FoxNews, about how the Attorney General of California was suing Fannie Mae and Freddie Mac, and I read the following paragraph:

“Harris also called on Fannie Mae and Freddie Mac to disclose whether they have complied with civil rights laws protecting minorities and members of the Armed Forces against unlawful convictions and foreclosures.”

Here is ONE of the problems that I see with respect to laws in the USA.  Do the Legislators that write these laws even think about what they say??  Do they even consider the Constitution??  Go ahead, read the quote again.

“Harris also called on Fannie Mae and Freddie Mac to disclose whether they have complied with civil rights laws protecting minorities and members of the Armed Forces against unlawful convictions and foreclosures.”

Here is my question.  What about us middle class white guys??  Do we have a DIFFERENT “Civil Rights” law that protects US from UNLAWFUL convictions and foreclosure?? 

In the Constitution, all men are created EQUAL!!  We ALL have the right to equal protection under the law.  No one is “more equal” than anyone else!!!  WHY is there a law that ONLY protects “minorities” and members of the Armed Forces??  These are the problems with these types of laws, they single out a group of people and “appear” to give them preferential treatment.  In my opinion, ALL of these laws need to be repealed.  Let’s go back to everyone is EQUAL, and deserves to be treated fairly.  I understand that some groups were not, perhaps are not, treated fairly.  In current cases, we need to PUNISH the perpetrator, to protect EVERYONE, NOT single out a group for special treatment.  We need to attempt to be “fair” to EVERYONE, and treat everyone for laws as EQUALS.

Let me know what you think.

P.S.  The “all men are created equal”, is not to disparage women.  When this was written, the English language used the descriptor “men” to include everyone in a group, including women, if there was one man present in the group.  It was accepted as correct language usage.  Many “romantic” languages (Spanish, French, Italian, etc.) continue in this tradition today.  The tradition may be changing in the English language today, but please, do not apply todays “politically correctness” to another time period, that did NOT have those concerns.

Fannie Mae and Freddie Mac CONTINUE to LOSE your money…

December 1, 2011

Here are some updates on Fannie Mae and Freddie Mac.  Here is my previous post.

“Fannie Mae, the biggest source of money for U.S. home loans, on Tuesday said it needed a further $7.8 billion in federal aid to stay afloat…”

“The government-controlled mortgage giant Freddie Mac has requested $6 billion in additional aid after posting a wider loss in the third quarter.”

That is NOT for the year!!!  That is for ONE QUARTER!!!  90 DAYS!!!

“Taxpayers have spent about $169 billion to rescue Fannie and Freddie.”

I understand that not everyone has heard about this situation and I understand that not everyone cares/is interested/understands the how/what/where/when/why we, as taxpayers, bailed them out.  But here is where I have a serious problem.  The “Executives” of these “companies” have been getting paid BONUSES for LOSING money!!  Here are links to articles from PBS, FoxNews, LATimes, and Business Week.  There are MANY others, just google bonus at fannie mae.  Also, I think I have shown that this is a NON PARTISAN issue.  I mean, if you do not think that PBS and Fox News are political opposites, then you can stop reading this blog and find somewhere else to get your information.  Thanks for your time.

“When Congress learned that 12 executives at Fannie and Freddie were paid some $35 million in salary and bonuses over the last two years, that was the last straw.”

“The total compensation for the top six executives at Fannie and Freddie for 2009 and 2010 was $35.4 million, with Williams and Haldeman receiving about half of that. Each of them could take home as much as $6 million apiece in salary and bonuses in 2011.”

“Edward J. DeMarco, chief regulator of the two firms, approved packages in 2009 that awarded a total of $17 million over two years to chief executive officers Michael J. Williams of Fannie Mae and Ed Haldeman of Freddie Mac.”

Bonuses??!!  For what??  ONLY losing $169 BILLION!!!  Can I have that “job”??  I’ll do it for half!! 

These numbers do NOT include the $100’s of MILLIONS or BILLIONS that were given to “executives” prior to 2009, when they were making these fraudulent loans that were a main contributing factor to the HOUSING CRASH that has caused the global economy to grind to a stop, sent unempoyment above 9%, and caused so much pain and suffering for Americans.  STILL, no one has gone to JAIL for this fiasco!!  I will leave you with the best quote from these articles, this question is directed at the CEO’s of Fannie and Freddie:

“REP. DARRELL ISSA, R-Calif., Oversight and Government Reform Committee chairman: You made $9.3 million the last two years while the president made $800,000. Do you think that’s — that’s OK?”

That is basically what I have said previously.  If you work for the Government, you do NOT “deserve” to earn more than the President!!  Any questions??

The VAMPIRES that run Fannie and Freddie….

November 2, 2011

So everyone should know by now that I have a problem with Fannie Mae and Freddie Mac.  (Here is a great article with footnotes from 2003) These two companies started out as GSE’s, meaning they received preferential treatment from the Government.  During this time they “made” BILLIONS of dollars that were distributed to shareholders and EMPLOYEES.  Then they ran into trouble (because they were IDIOTS and did not understand the RISKS they were taking, or they were THIEVES because they knew the risks and did  not CARE and STOLE the money from the company) and were BAILED out by the Government with OUR MONEY.

The following is the problem that I am having:

Here is an article from February 2011 from CNN:

“When the dust settles, the federal bailout of Fannie Mae and Freddie Mac will be the most expensive government rescue of the financial crisis — it already stands at $153 billion and counting.” (my emphasis)

And here is an article from the Huffington Post on October 28, 2011:

“The government has already spent $169 billion to bail out the two companies.” (my emphasis)

So, in less than 8 months, WE have given these two companies ANOTHER $16 BILLION!!!  This does NOT include the latest quarter.  HEre is the problem I am having.  IF we, THE AMERICAN TAXPAYER, did NOT give any money to these two companies they would have to file for bankruptcy.  Yet the management is STILL receiving bonuses!! 

Here is an article from FoxNews:

“A Republican senator is calling on President Obama to cancel the $12.8 million in bonuses that were approved for 10 executives at the government-seized mortgage giants…”

The people who “work” for these companies are LUCKY to have a job!!!  If We did not bail them out the companies would likely have been sold off.  WE own these companies!!!  I want to know WHO approved these “bonuses”!!!  President Obama is DIRECTLY responsible for these companies!!!  HE bought them for US!!  Whomever “approved” these bonuses needs to hear two words……..”You’re FIRED”!!!  Also, President Obama needs to answer questions as to why this was allowed to get this far.  What is President Obama going to do about the money that was “paid” to prior management of Fannie and Freddie??  I am especially interested in ANY monies paid as bonuses!!

What say you Mr. “President”???

I will leave you with a few more quotes from the above referenced articles:

“The Federal Housing Finance Agency, the government body that oversees the two mortgage giants, has estimated that losses through 2013 will require Treasury to pour another $68 billion to $210 billion into the firms on top of the money already used to prop-up the firms and the housing market.”

“But while the government has kept the firms alive by pumping money into them since then, there has been no plan on reforming their operations going forward.”

“It will cost taxpayers at least $51 billion more to support the mortgage companies through 2014, and as much as $142 billion in the most extreme case.”

In case you missed it…………THEY ARE STILL LOSING MONEY!!!

Rep. Frank Pushes For Prosecutions Over Meltdown

March 26, 2009

First read this article that has been posted at CNBC.

In an interview with CNBC, Representative Barney Frank says he wants to push for prosecution of the people who caused the country’s financial meltdown.

The Massachusetts Democrat says he has no specific targets in mind, but says the most significant thing lawmakers can do is make past bad practices illegal.

Frank also said that he was glad some U.S. banks had been returning government TARP money and said that was a sign that the banks were feeling more stabilized.

Earlier in the day, Frank, who is chairman of the U.S. House Financial Services Committee, told reporters that he plans to move legislation this month on mortgage origination, predatory lending and credit cards. Vowing to turn his focus from stabilizing the financial system to reshaping it, Frank said he will hold hearings to examine creating “a strongly empowered systemic risk regulator.”

Hearings are set for March 17, 20, 24 and 26.

Frank has said in the past that he expects the Federal Reserve may be handed the new role of monitoring the financial system for risk.

Some lawmakers are concerned such duties could distract the Fed from its core role as manager of the nation’s monetary policy.

“While we will continue to work with the Obama administration on stabilization, it is now essential that we continue work on our reform agenda and address the need for financial regulatory restructuring,” Frank said in a statement distributed ahead of a news conference.

“Perhaps most importantly, the American public has the right to know what enforcement actions are contemplated against those irresponsible and, in some cases, criminal actions that lead to the current situation,” he said.

At a House financial services subcommittee hearing on Thursday, Wall Street groups agreed there should be one one risk regulator but were split on who should have that role.

The Financial Services Roundtable, which represents the largest financial services firms, advocates giving the Fed the responsibility for looking across the entire financial system and identifying risks.

But the Securities Industry and Financial Markets Association, said it has not decided whether the Fed should play that role.

The National Association of Insurance Commissioners, a collection of state regulators, oppose the creation of one super regulator.

And some key lawmakers have reservations giving the Fed more powers, citing potential conflicts with the board’s current responsibilities of setting monetary policy and supervising banks.

“Are any of you troubled with giving the Fed so much power?” asked Alabama Rep Spencer Bachus, the top Republican on the full House Financial Services committee.

Lawmakers at the subcommittee hearing also expressed reservations about rushing ahead with a plan to create a systemic risk regulator.

“We have to get this one right. We can’t just hurry to expeditiously conclude something that appears to be a fix, when it does not accomplish something of a significant nature,” said Pennsylvania Rep Paul Kanjorski, the Democratic chairman of the House subcommittee on capital markets and insurance.

http://www.cnbc.com/id/29532023

I agree wholeheartedly with this article and Rep. Frank, and since Rep. Frank does NOT(?) know where to start, let me make a suggestion. 

I believe that we should start with the criminally negligent behavior and obvious conflicts of interest that are associated with Rep. Frank.

 The following are a few links to details of the specifics.

http://www.businessandmedia.org/printer/2008/20080924145932.aspx

and from U.S. News and World Report:

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.”

http://www.usnews.com/blogs/sam-dealey/2008/9/10/barney-franks-fannie-and-freddie-muddle.html

Democrat Barney Frank, then ranking member and now chairman of the House Financial Services Committee, said, “I want to roll the dice a little bit more in this situation towards subsidized housing

http://www.usnews.com/blogs/barone/2008/10/06/democrats-were-wrong-on-fannie-mae-and-freddie-mac.html

From the Boston Globe:

http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2008/09/28/franks_fingerprints_are_all_over_the_financial_fiasco/

And from Fox News:

Detailing the fact that Frank was dating/living with an Executive of Fannie Mae.

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

And the Wall Street Journal:

http://online.wsj.com/article/SB122091796187012529.html?mod=googlenews_wsj

And the Tax Foundation:

http://www.taxfoundation.org/blog/show/23617.html

And Barney Frank was one of the Top 30 politicians receiving campaign contributions from Fannie Mae

http://www.opensecrets.org/news/2008/09/update-fannie-mae-and-freddie.html

Along with Christopher Dodd and John Kerry and (although he only voted present, so maybe this does not count) Barack Obama.

Lets start with Representative Barney Frank in front of a Congressional Inquiry and Independent Prosecuter and we will go from there.

And for those that need more information from the beginning of the problem, here is an article from the New York Times, dated 1999 (Thank you President Clinton), written by Steven Holmes.

“But the government-subsidized corporation (Fannie Mae) may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.” (emphasis added)

http://query.nytimes.com/gst/fullpage.html?res=9C0DE7DB153EF933A0575AC0A96F958260&sec=&spon=&partner=permalink&exprod=permalink