New Twist in Countrywide Loan Probe

Mortgage Giant Gave VIP Status to Powerful Democrat Who Heads Committee Investigating Its More Questionable Lending Practices

(CBS)  Add Congressman Edolphus Towns to the growing list of influential Democratic and Republican VIP's who received loans from Countrywide Financial. That's significant because Towns, a Democrat, heads the committee investigating the mortgage giant's practices. And he personally is blocking the effort to subpoena Countrywide documents, reports CBS News correspondent Sharyl Attkisson.

Republican Darrell Issa is behind the subpoena effort.

"It's really about what Countrywide sought to do, how vast it was, what they got for their millions of dollars in discounts and how do we make sure it doesn't happen again," Issa said.

A Countrywide whistleblower says the company aggressively courted those in position to influence regulations as it made billions by giving out risky loans, then selling them to government-backed Fannie Mae. Billions of dollars worth of those loans defaulted at taxpayer expense.

Today, the Senate Ethics Committee cleared Senators Kent Conrad and Chris Dodd of violating Senate gifts rule for getting VIP Countrywide loans. But they added that they, "should have exercised more vigilance" and their VIP loan status "should have raised red flags."

Internal Countrywide emails leave no doubt as to why some congressional staffers received favorable loans, calling them "a big supporter of Countrywide's" or "responsible for... legislation of interest and importance to Countrywide."

Towns received three loans from Countrywide - and Countrywide is listed as the mortgage holder for his Brooklyn property.

Towns declined our interview request, his office saying he neither sought nor received any special mortgage benefits. For now, he continues to block the subpoena of documents that could list all the VIP's given special treatment by Countrywide - and what, if anything, Countrywide sought in return.

[swin5]

Look folks, we may not have the right to expect our elected officials to always know what to do to solve any given problem. But we sure should have the right to expect that at least our elected officials are honest and tell the truth. You can pull some 18 year old naive bearded American kid pretending to be an Islamic terrorist out of a cave in Afghanistan and say he's guilty of treason. But the real threat to our country is internal and it lies in our corrupt government officials who undermine any faith and trust the people may have in their government.

Add an amendment to the constitution. Make corruption in government by an elected official an act of treason and make it punishable by death.

[speakinup22]

Normally I take a Conservative's approach, but I feel that ANYONE that thinks they are above the law, or deserves special deals as a result of their position, should be not allowed to be in politics, period.

We don't need people that: cheat on their spouses, knowingly takes bribes, accepts 'favors', or breaks laws in our government. There are pleanty of good people to administer our country. Vette out this low-life scum before they get into the primary, or accept the loss at the poll.

It is time to bring honest, good statesmen/women to our service. DEMAND IT!!! Because if they are willing to treat someone else dishonestly, they sure as hell will do it to you.

You ain't 'special' in their book.

[ffoulkes-2009]

How long, exactly does it take a politician to go from someone wanting to do good for his country to being a greedy bribe-taking dirt-low scumbag of a fat cat idiot?

I don't think I'll ever be wanting to run for office...My wife would have me dead in a month if I became like the rest of 'em.

[42848004]

Just another corrupt politician in a position of power, a la Rangel. We voted for 'change', but the crooks are still in the catbird seat. The only diff is that they wear blue rather than red and, as they ran on a platform of 'change' they are bigger hypocrites that those they replaced.

These losers should be ousted from their chairmanships, ousted from office, and (hopefully) convicted.

It won't happen tho. The crooks are in control.

[EndEarMarks]

We the people must make our voices heard, no more just sitting by and watching those elected officals so easily and blantly enrich themself's at the expense of you and I, the workers. We all pay the goverment employees salary's and give them health benefits we can only dream about.

I e-mailed my State's congressman asking what health benefits he had and why we working American's are not worth the same - he sent me a form letter(what an insult) they think we are stupid.

They also think we have a short memory, come election day these people need to GO.

[speakinup22]

A-MEN!!!

BTW, I like the pen name. Let's not spend money to help the incumbent, when it could be spent on something that really needs it.

[xlib]

I have contacted my so called representatives by phone and told them I do not want a response by mail. I do not want my tax dollars to go towards some form letter being mailed. I have also told one idiot to stop sending updates on his doings in Congress by mail.

[tincup356]

LOBBY DOLLARS = paid conspiracy by BOTH parties.They are loyal only to the color GREEN,,,,NOT Red White and Blue.

[speakinup22]

Truer words were never spoken.

Some in both parties are corrupt.

[xlib]

Gee, in the first paragraph it states "democrat & Republican VIP's" but I don't see any Republican names. I do know just from following the mortgage mess that the dems are knee deep in it but if there were any Republican to be named you bet your arse the state run media would run them.
Now, I'm not saying Republicans are never wrong, unlike the dems who do nothing but make excuses and blame others when one of thier own messes up. I did read an article in Politico that this town's jerk was all in the face of Issa for having the AUDACITY to persue this matter.
Gotta love the thugs in charge. It's the Chicago way.

[surfcity5150]

Blind Faith in your government "the Obama socialist party" will lead you into a downward spiral that you will not be able to overcome.

[gwwelch]

For all those that put the democrats in power. I told you so.

[semanoj]

Oh, come off it. Is it against the law to (re)suggest that this country is A. too socially complex, B. too corrupt, and C. too polarized to remain a single state? I wonder whether Republica's main enemy would continue to be Islam terrorists, or would become, instead, Demostate. We could have live shootouts fighting over who gets DC, much more exciting than reality TV. Might bring the networks back.

[maistir]

The great joke in all this is that Congressman Towns chairs a committee that has "Government Reform" as part of its title.

He is a fairly typical product of urban, machine politics. There is one-party rule in most of the districts that produce corrupt officeholders from Phila., NYC, Chicago, etc. Since these dirty influence-peddlers never face a serious challenge at the ballot box, the only way to get them out of office is to get them into prison.

[jetranger7]

"READ THIS" - How many of you who are old enough remember a man down in Tenneesee, who Carried a Big Ol' Stick, and cleaned up his town of all the Fraud and Corruption ? He was known as Sheriff Buford Pusser, known for carrying that Big Oak Stick, and literally breaking peoples arms, legs and cracking open a few Skulls, to achieve his point, and that he did ! So to all the Corrupt Corporate Banking CEO's sitting in their little Pathetic Offices up in some high rise in New York, thinking of more ways to screw over the American people with your fraudulent phony Mortage Scams and are unwilling to help the home owners after you've clearly recieved financial help from us - the Tax Payers, this message or letter is to suffice, that your days have come, and your fixing to pay the Piper ~!

[xlib]

I'd go for that but you are leaving out the scum politicians who are in bed with the Wall St types & bankers. Your anger is misguided by this thug administration and the media. You appear to be blaming Countrywide and giving a pass to the politicians. Open your eyes, do a bit of research. Goldman-Sachs donated millions to the democratic party exclusively. Madoff donated a ton to rangle, schumer, clinton and the democratic party. You better wake up and see what's really going on.

[tincup356]

To xlib,,,, just remember the Republicans are just as crooked when it comes to taking money under the table in the form of LOBBY DOLLARS, Americans need to wake up LOBBY DOLLARS are the very same thing as bribery,,,only on a grander scale ,encompassing BOTH PARTIES AND CORPORATE AMERICA,,,which makes the practice ,,,A CONSPIRACY against "We the People",,,,,,and that adds up to HIGH TREASON.

[xlib]

tincup-Lobby dollars, you say!! You mean the lobbyists that the thug administration swore would not be permitted in his administration, those lobbyists. Like the one in the Pentagon and many others. What I strongly object to is the way this is treated in your media. When a Republican screws up it's all over the place for days. However, if it's a dem,well, you are hard pressed to find the party affiliation, if at all. I object to the fact that Goldman-Sachs is so closely tied to this administration it's disgusting. I also point to the fact that GE will profit greatly if cap & trade passes. Do a bit of research,please.
I totally agree that both parties are filled with crooks, that's not new. What I don't like is the free pass this administration is getting. We better start looking real hard at the ties with the big time unions, too.

[kindrox]

Wow what a bunch of neive congressmen we have, all getting sweetheart loans and not a single one aware of it! I am sure Countrywide never said a single word to them about it either.

[xlib]

Yea, and the dems keep telling us how very smart & intelligent they are and how stupid conservatives are. Amazing how they always get roped in, isn't it?

[speakinup22]

xlib, as much as I'd like to agree with you about some self-righteous posts from the left, I have to say...

No matter WHAT political affiliation the person has - I want them out of office if they feel they are entitled to special treatment or above the law.

If libs and Conservatives can't agree on this, we allow filth to run our country. Politics are necessary, and they are bad enough - let's NOT endorse corruption in our own parties too.

[co2user]

Way to go ending the Culture of Corruption, Nancy. Open the pages, let everyone, no matter the party, defend their position.

[Policy_Before_Politics]

Really? Nancy Pelosi is to blame for this too? Does nancy Pelosi sit on this committee? Is she responsible for the actions of others even if she had nothing to do? Your post would be like me kicking your poor defenseless mother for the stupidity of her children.

Anyone who would smear the good character and integrity of another person without evidence is him- or herself a person without good character or integrity. If you had either you would know their value. You would know that these kinds of attacks are the act of a cowardly dog.

[ffoulkes-2009]

Policy_Before_Politics,

I believe you are the stupid one here...tho I disagree with co2user, I believe he/she is congratulating Nancy on cleaning house.

[mropinion]

Please tell all politicians that playing ignorance on their behalf to any wrongful activity would be like a lawyer saying Gee, I did not know the offense was against the law. Better yet a doctor not knowing what to prescribe for a sickness or a common malady. If they who write the rules do not know whether to follow them or not then what about those whom they had expected to reach, by such. (would they know?).

[whosaid1]

Countrywide documents need to be made public..."we" need to have identified for us...those elected officials that got the "sweetheart deals"....regardless of party....

[tincup356]

Both parties are corrupt, and NEITHER represents the people of America . when you leave the investigations under the authority of those involved,,,,,there is no thorough investigation and justice is NOT served. Government corruption goes much deeper than just this story,it goes all the way to conspiracy when lobby dollars turn to BILLION dollar payouts in which corporate management rewards themselves with performance bonuses for FAILING. The most appalling thing is ,,,,OUR government agreed to the bailouts AFTER accepting BILLIONS in lobby dollars. Every one of this countries problems are the fruit of over 50 years of lobby tainted legislation from BOTH parties,expecting the same crooks to straighten out the mess THEY made, while collecting personal gains,,,,,Is sheer insanity. It would be like having the fox try to replace ALL the chickens he ate while guarding the hen house.