Gingrich, Romney hit each other over involvement in Fannie Mae and Freddie Mac

A question from an audience member about the future of Fannie Mae and Freddie Mac at Thursday night's CNN debate turned into a slugfest between House Speaker Newt Gingrich and former Massachusetts governor Mitt Romney. The two Florida front-runners hit each other over investments and relationships to the mortgage giants taken over by the government at the height of the financial crisis in 2008.

"We should have had a whistle blower not a horn tooter," Romney said about the former House speaker, who worked as an adviser to Freddie Mac, the smaller of the two organizations.

Gingrich accused Romney of "cheerfully" making attacks "inaccurately," noting that he was not a registered lobbyist for the firm.

Gingrich turned the table back on the former Massachusetts governor for his investment portfolio.

"We discovered to our shock, Governor Romney owns shares of both Fannie Mae and Freddie Mac. Governor Romney made a million dollars off of selling some of that," Gingrich said.

The two firms have taken close to $150 billion in taxpayer funds since they were seized.

Gingrich also said Romney "has an investment in Goldman Sachs" which is behind many of the foreclosures taking place in Florida.

"Maybe Governor Romney in the spirit of openness should tell us how much money he's made off of how many households that have been foreclosed by his investments," Gingrich said.

Romney said he did not control how his money was invested because a "blind trustee" manages his investments, adding that he did not own shares in Fannie Mae and Freddie Mac but rather had purchased their mortgage bonds, in effect lending money to the two beleaguered firms.

The firms, which were privately run until 2008, were frequently criticized because they could borrow money more cheaply than their private competitors because those who lent them money knew that their special status meant that the government would step in if trouble emerged.

He then turned his attention to Gingrich.

More from the debate:

Gingrich, Romney at each other's throats over immigration
Gingrich, Romney agree to blame the Palestinians, Obama for lack of progress in the peace process
Gingrich hints at making Marco Rubio VP
Romney tells Gingrich: I'd fire you for your moon proposal

"What the speaker did is work as a spokesperson. He got paid $1.6 million to do that," Romney said, noting that Gingrich said his first contract indicated there would be no lobbying.

"But his second contract didn't have that prescription taken out of it. And so you have to ask yourself why is that? What he was doing was clearly promoting Fannie Mae and Freddie Mac," Romney said.

Rep. Ron Paul and former Senator Rick Santorum declined engaging in the back and the forth. Paul said the topic of Gingrich and Romney's business ties "doesn't interest me very much."

Santorum called it "petty, personal politics" and said Gingrich working for the mortgage lenders "is not the worst thing in the world."

Three of the four candidates failed to address the role of Fannie and Freddie in the housing market. Mitt Romney briefly touched on it but offered few details. "Are they a problem today? Absolutely," Romney said.

The Obama administration has proposed a slow wind-down of the firms over time, but has been reluctant to implement any quick changes for fear of doing further damage to the still struggling housing market.

[phyllissmithz]

One reason existing refinancing efforts have fallen far short of their goals is that Fannie and Freddie continue to charge homeowners high, risk-based fees up front to refinance their loans you can avoid this if you check your rates and fees at 123 Refinance before you sign

[starving1968-3]

by RobAla January 26, 2012 10:38 PM EST
However , all were in agreement that Freddie and Fannie is a colossal mess of mismanaged and corrupt practices, and that they should eventually be done away with. To add to that, it was a Democrat led Congress that pushed Freddie and Frannie to participate in unsound lending practices that resulted in the mortgage collapse. The federal government needs to get out of the housing business, as it has proved to make it almost as incompetent and mismanaged is the federal government is.







You don't even understand or comprehend what Fannie and Freddie do.

How do you feel that your inability to comprehend the companies, makes you an expert on whether they should be allowed to exist or not?

[starving1968-3]

by RobAla January 26, 2012 10:19 PM EST
Both Gingrich and Romney should have refused to play Blitzer's silly game of petty questions. They should have stood there in silence until Blitzer actually asked a question of substance.







They can't ANSWER questions of substance, and they constantly go off on tangents trying to dodge the question.

Gingrich was asked on a Spanish language station how his affairs differed from Clintons, and his answer was that he "didn't lie under oath about them".

That doesn't answer the question: "How is YOUR cheating on YOUR wife, different from Clinton cheating on his?"

[starving1968-3]

Obama hopes that they have a LOT MORE debates!!

He's CRUSHING the competition!!

[dzaffina]

so these two clowns are the best of the best the republican party has to offer the american people? are you freaking kidding me?

[dzaffina]

hahahaha, the hypocrisy of the republican party just keeps giving and giving.i heard all the comedians have given their writers vacations, they don't need them.

[RobAla]

I listened to the President Obama's third State of the Union Address, and I have come to the conclusion that he is a schizophrenic. He talked about everyone playing by the same rules, after giving out $100s of billions of taxpayer dollars to corporations of his choice while allowing other businesses to fend for themselves. He talked about reducing federal regulations on business, after burying American businesses under increased regulations contained in his disastrous health care law, He talked about national unity, after he has divided Americans and pitted one group of Americans against another for three years. He announced that "America is back", after burying the nation under deficit spending like no other President in American history. He announced "no more bailouts", after being the king of bailouts. He talked about energy independence, after stopping a oil pipeline that would have made American less dependent on middle-eastern oil and would have created more than 20,000 jobs. I have never heard a more twisted, muddled, and conflicted speech in all my life

[JoeLoerzel]

@RobAla - I thought the State of the Union was actually pretty good. However, I disagree with him on the pipeline because you're right - we need it; well, as long as its not near in my back yard:-)

[tmn]

Rick "Frothy Mixture" Santorum WHO??

Ron "Wacko" Paul WHO??

Let's someone get a pool going as to which one of these bottom feeders will drop out first...

[RobAla]

However , all were in agreement that Freddie and Fannie is a colossal mess of mismanaged and corrupt practices, and that they should eventually be done away with. To add to that, it was a Democrat led Congress that pushed Freddie and Frannie to participate in unsound lending practices that resulted in the mortgage collapse. The federal government needs to get out of the housing business, as it has proved to make it almost as incompetent and mismanaged is the federal government is.

[prs5]

I suppose if they are going to throw dirt and mud at each other it helps to have spent a lifetime piling it all up in their own personal political playground.These kids need to grow up as they are an embarrassment to the American political system.Anyone who thinks these two jokers have something to offer as president and are worthy of high office in the most powerful nation on earth is bereft of acceptable standards of adult behavior and has no regard for any semblance of veracity.This infantile performance should make any half intelligent person cringe with excruciating embarrassment.If this is the best that the Republican party has to offer then it reflects badly on anyone who would vote for a Republican anything.Presenting a viable program of intended policy solutions is one thing but petty squabbling and venal character assassination is unconscionable when the country is in desperate need of real leadership in order to save it from potential economic disaster.The stakes have never been higher and a unfortunately neither has the pile of mud and dirt.

[RobAla]

Both Gingrich and Romney should have refused to play Blitzer's silly game of petty questions. They should have stood there in silence until Blitzer actually asked a question of substance.

[dzaffina]

what, like hows the family ? you'll have to wait for the next faux debate for those kind of questions

[RobAla]

No- stupid questions like "Why would your wife make the best First Lady?" Actually, that was one of Blitzer's better questions.