NEW YORK, Sept. 8, 2008
Limited Oversight Doomed Mortgage Giants
CBS News Investigation Finds Political Privileges Masked Fannie Mae And Freddie Mac Downfall
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Mortgage Rates Tumble
The government takeover of mortgage giants, Fannie Mae and Freddie Mac sent mortgage rates tumbling to 6.2 percent. As Anthony Mason reports, rates should continue to fall within the next few weeks.
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(AP)
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Fast Facts
Fannie & Freddie
A look at the government-sponsored siblings and their role in the mortgage market.
Whenever Fannie and Freddie found themselves in trouble they would invariably point the finger to a government mandate that dates back to the depression: The need to provide affordable housing to every American.
To help make that happen, the government granted them privileged status, including:
Those are powers that would only expand over the years.
"You'd have people in Congress that would make it very clear they wanted nothing to touch Fannie and Freddie," said former Rep. Jim Leach.
He said he tried to hold Fannie and Freddie's feet to the fire - with little or no success.
"At one point in time, they had more lobbyists in their employ that any other institution ever," Leach said.
In fact, CBS News has learned, Fannie and Freddie now boast nearly 150 lobbyists, spending almost $175 million combined over the past decade alone. That's more than pharmaceutical giant Pfizer and defense contractor Boeing.
The mortgage giants doled out $2 million more over the last four years through political action committees. It was money used to fend-off regulation that would have required it to maintain deeper financial reserves to act as a cushion to the kind of risky loans that led to their undoing.
"Fannie and Freddie were thuggish," said Amity Shlaes, the deputy director of the Council on Foreign Relations. "People who worked there misled other people. They used political power in an ugly way."
A few years ago, Fannie was fined nearly $400 million after an investigation revealed it overstated earnings by $10 billion to maximize executive pay. That cost former CEO Franklin Raines his job but not $65 million of the $90 million he received in bonuses.
Now the CEO's who presided over the demise of Fannie and Freddie are out the door as well, walking away with some $30 million.
While every American, it seems, is paying the price.
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See all 67 Comments'' .. even when public education was a vandate, people were still largely uneducated and impoverished, and still had to be paid even just to travel and browse opportunitys to volunteer, lest they should curl up in some dark lonely alley cavern and just die .. ''
The purported management of Fm2 was little more than "Animal House" in the executive suite.
As an incorporated entity, FM2 management had a legal obligation to conduct a tight operation, well and efficiently run.
Elsewhere, their misconduct would be prosecuted to the fullest extent of the law. But the high-rolling honchos of FM2 knew their congressional patrons could care less-- up to a point-- so long as the principals at FM2 stayed out of the press.
This too, happened with the S&L (Savings & Loans) in the 80''s.
If we had not deregulated the industries to the degree where greed can corrupt it, things would be better today. The greediest prove that less government costs us and the losses are not recoverable. Had a fraction of the revenues been expended policing the industry, (Yes More Government) our Mortage Lending industry would be sound, today.
Less government calls the corrupted to rob the craddle...and it is the craddle because it is our children who have to work to pay this bill for things bought in 2008 with our taxes.
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same sob''s who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same sob''s who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same sob''s who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same sob''s who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same sob''s who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same sob''s who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Rates will go up after November as will gas prices.
Meanwhile, it''s the ordinary American that will continue to be the cash cow for the con artists in charge.
Where did all that money go? You know, the trillions that were and continue to be lost due to the mortgage con job? That money didn''t just disappear, lots of people became filthy rich off of that scam......and now they get more taxpayer money to bail them out once again.
The government had no business setting these up.
Imagine an economy where if you lent money you actually had to HAVE THE MONEY TO LEND!!! What a radical concept.
If that means no 30 year mortgages; then so much the better.
Now the same crooks who made billions on the scam, will buy up all the foreclosed properties in time to pump things up again in time for the 2012 elections.
Don''t ya get it folks? We''re being played.
Meanwhile pollution and global warming just might kill the whole species in the next century.....but hey, what does John McCain care....he''ll be long gone by then eh? And Palin, hey, she don''t care either as she''ll be "Raptured" into heaven.
Where have all the brain cells gone? When will we ever learn?
Its the greed of the lender executives preying on the greed of the McMansions crowd that has caused the bulk of this mess.
i want a golden parachute at my job too!
LOL
no way!
oh....and remember all those bridges to nowhere in alaska when you cast your votes this november!
let me see now....who''s the governor of alaska?
This too, happened with the S&L (Savings & Loans) in the 80''''s.
Posted by Pensacola98
Funny you should mention the S&L scandal. The OTHER Bush thingee was president for that one.
This isn''t just national...it could have global implications. And exactly how many years did it take to wise up to what was going on? HOW MANY YEARS? I heard of this back in the 1990s. And this whole thing was left unchecked. Oh yea....
If you''re a Repub or a DEM...your brand of politics and hoodwinking has got to end.
You can look at the candidates (Look at BIDEN) and see where endless government corruption will end-the guy is a player.
OIL..OIL..OIL
Posted by maxify55 at 06:33 AM : Sep 09, 2008"
I used to think nearly exact to that, but you have to realize one thing, not everybody''s as smart / successful as everybody else. Hell, next to Bill Gates you and I probably look like trailer park bums.
Point is, people make mistakes...that will never end. Everybody, from every level of society, makes mistakes. You''re not exempt, even if the mistakes you make are different than somebody else''s.
These types of companies should have insurance against the "unnaccountable Americans" you speak of. I certainly have auto/home insurance, why shouldn''t the companies insure their very existence? Its their fault for being greedy and corrupt, period.
Posted by maxify55 at 06:33 AM : Sep 09, 2008
Then why are there so many prosecutions for predatory loan practices and misconduct inside the industry instead of prosecutions of borrowers alone. Because of the Republican less regulation and less government (enforcement) policies that allowed the industry to operate out of control and who must pick up the tab for their mistakes -- we the taxpayers. McCain''s platform calls for more of the same less regulation and less government -- vote against more of the same failed policies that cost taxpwyers money.
I''m definitely with ya on most of that...but companies / businesses have forever misled and flat out lied to customers and consumers. I have no pity for them, particular when they can walk away from ruining a company with $65M in compensation.
And, the Bushites have repeated the cycle. More Republican bailouts for the rich.
And everyone else?
"Let them eat cake".
Agree...Ron Paul unfortunately is too good at America to get elected by modern-America.
________________________________________
Posted by LibH8er at 08:59 AM : Sep 09, 2008
If privatization is the answer how do you explain the failure of Enron and the bailout of Bears Stearn? You blinder wearing right wingers are all the same, screw the little guys, and grab all you can get. And you think corporate welfare is the same as free enterprise.
The CEOs of these and other underperforming companies still make their insane salaries. All while skilled educated workers see their salaries remaining flat or declining, if they can even hold onto their jobs. Our country is in trouble and the leadership at the top is to blame. Bush and his policy of non-regulation will continue to haunt this country long after he is gone. You can%u2019t let the fox guard the henhouse.
Ya that''s probably the best summarization (is that a real word or Bushism?) about the whole deal. Government oversight is a joke at best. Most agencies assigned to watch other organizations are just as corrupt/lazy as the ones being watched. The fox isn''t just in the hen-house...he built it, financed the mortgage for it, and herded the masses into it.
the ever present god spewing hockybiitch is in da house, time to go drop a few friends off at the pool.
------------------------------------------------------
Posted by gophockeymom at 08:58 AM : Sep 09, 2008
+ report abuse
Yes, yes deregulate everything said the GOP VP candidate from the podium. The rest of her speech was unintelligible after she started speaking in tongues.
Ronnie used to rapturize about the "magic of the marketplace". Actually it was a formula to let the predators plunder the people.
And the Bushites have carried on with a vengeance.
Can''t let any pesky law enforcement get in the way of Bushit''s Billionaires making tons of money by *** the American people!
That how the Republicans have ruined our economy and destroyed the financial security of millions of Americans.
Hope you''re happy, Bushites!
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