History is being made. We are in the midst of a Left Wing Coup d’état.
The financial markets were timed to crash down just in time forthis election. Obama the left wing poster boy was meeting with Clintonon 9-11 to trigger the poison pill. When it looks like all hope is lost for Obamahere comes “Black” Monday. Now Obama is blaming 8 years of a Republican Presidency.The left has been working for years to drain as much capital from the markets as possible. They have a war chest that they are using to pay off industry, media and military concerns. Fannie Mae’s Franklin Raines, who served as White House budget director under President Bill Clinton, resigned under serious allegations of corrupt management. In 2006, the OFHEO announced a suit against Raines in order to recover some or all of the $50 million in payments made to Raines based on the overstated earnings initially estimated to be $9 billion but have been announced as 6.3 billion.Civil charges were filed against Raines and two other former executives by the OFHEO in which the OFHEO sought $110 million in penalties and $115 million in returned bonuses from the three accused. On April 18, 2008, the government announced a settlement with Raines together with J. Timothy Howard, Fannie’s former chief financial officer, and Leanne G. Spencer, Fannie’s former controller. The three executives agreed to pay fines totaling about $3 million, which will be paid by Fannie’s insurance policies. Raines also agreed to donate the proceeds from the sale of $1.8 million of his Fannie stock and to give up stock options. The stock options however have no value. Raines also gave up an estimated $5.3 million of “other benefits” said to be related to his pension and forgone bonuses.An editorial in The Wall Street Journal called it a “paltry settlement” which allowed Raines and the other two executives to “keep the bulk of their riches.” In 2003 alone, Raines’s compensation was over $20 million.A statement issued by Raines said of the consent order, “is consistent with my acceptance of accountability as the leader of Fannie Mae and with my strong denial of the allegations made against me by OFHEO.”In a settlement with OFHEO and the Securities and Exchange Commission, Fannie paid a record $400 million civil fine. Fannie, which is the largest American financier and guarantor of home mortgages, also agreed to make changes in its corporate culture and accounting procedures and ways of managing risk. In June 2008 Wall Street Journal reported that Franklin Raines was one of several politicians who received below market rates loans at Countrywide Financial because the corporation considered the officeholders “FOA’s”–“Friends of Angelo” (Countrywide Chief Executive Angelo Mozilo). He received loans for over $3 million while CEO of Fannie Mae. And now Raines is an advisor to Obama!In the four years since he stepped down as Fannie Mae’s chief executive under the shadow of a $6.3 billion accounting scandal, Franklin D. Raines has been quietly constructing a new life for himself. He has shaved eight points off his golf handicap, taken a corner office in Steve Case’s D.C. conglomeration of finance, entertainment and health-care companies and more recently, taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters! Sounds like the script for the next McCain TV spot!
*Enter stage left – *
Barney Frank. The New York Times reported on July 20, 1990 that the House Ethics Committee recommended “that Representative Barney Frank receive a formal reprimand from the House for his relationship with a male prostitute.” Attempts to expel or censure Frank, led by Republican member Larry Craig (who himself was later embroiled in his own homosexual scandal) failed. Rather, the House voted 408-18 to reprimand him. This condemnation was not reflected in Frank’s district, where he won re-election in 1990 with 66 percent of the vote, and has won by larger margins ever since. Frank is known for his witty, self-deprecating sense of humor. He once famously quipped that he was unable to complete his review of the Starr Report detailing President Bill Clinton’s relationship with Monica Lewinsky, complaining that it was “too much reading about heterosexual sex”.
Soon after Nancy Pelosi became was voted to become the next Speaker of the House. Nancy Pelosi nominated her good friend Rep. John Murtha as House Majority Leader. Rep. Steny Hoyer was also nominated and won over Pelosi’s hand-picked successor, 149-86. Of Pelosi’s endorsement of Murtha, Rep. Barney Frank said, “She’s a very smart woman who made an error in judgment.” Democrats also selected James Clyburn of South Carolina as majority whip.Rahm Emanuel of Illinois was named as their caucus chair post, the No. 4 position for Democrats.Frank will become chairman of the House Financial Services Committee.
As Chairman of the House Financial Services Committee, Frank “sits at the center of power”. Thomas Mann, a senior fellow at the Brookings Institution, was quoted as saying, “He is one of the giants of Congress, a real legislator,” in his new role.In 2003, Frank *rejected Bush administration and Congressional Republican efforts for the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis. Under the plan a new agency would have been created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry. *“These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis,” Frank said. He added, “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”
*Enter Stage Right – *
S. 190 [109th]: Federal Housing Enterprise Regulatory Reform Act of 2005
Senator John McCain, R, Arizona: Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
I urge my colleagues to support swift action on this GSE reform legislation.
Quick InfoS. 190 [109th]: Federal Housing Enterprise Regulatory Reform Act of 2005Last Action: Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.Status: Dead
Killed by the Democrats who had HUGE financial reasons to kill it (and it will cost taxpayers BILLIONS).
From: Federal Housing Enterprise Regulatory Reform Act of 2005SEC. 111. LIMIT ON GOLDEN PARACHUTES.Section 1318 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4518) is amended by adding at the end the following:
(c) AUTHORITY TO REGULATE OR PROHIBIT CERTAIN FORMS OF BENEFITS TO AFFILIATED PARTIES-(1) GOLDEN PARACHUTES AND INDEMNIFICATION PAYMENTS- The Agency may prohibit or limit, by regulation or order, any golden parachute payment or indemnification payment.(2) FACTORS TO BE TAKEN INTO ACCOUNT- The Agency shall prescribe, by regulation, the factors to be considered by the Agency in taking any action pursuant to paragraph (1), which may include such factors as–
(A) whether there is a reasonable basis to believe that the affiliated party has committed any fraudulent act or omission, breach of trust or fiduciary duty, or insider abuse with regard to the enterprise that has had a material affect on the financial condition of the enterprise;(B) whether there is a reasonable basis to believe that the affiliated party is substantially responsible for the insolvency of the enterprise, the appointment of a conservator or receiver for the enterprise, or the enterprise’s troubled condition (as defined in the regulations prescribed pursuant to section 32(f));
(C) whether there is a reasonable basis to believe that the affiliated party has materially violated any applicable Federal or State law or regulation that has had a material affect on the financial condition of the enterprise;(D) whether the affiliated party was in a position of managerial or fiduciary responsibility; and
(E) the length of time the party was affiliated with the enterprise, and the degree to which--(i) the payment reasonably reflects compensation earned over the period of employment; and`(ii) the compensation involved represents a reasonable payment for services rendered.
What more proof does the American public need! The democrats are out of controland must be stopped. The new financial crisis before us was created bygreed, corruption at the highest levels and an American public that is asleepat the election booth.
OK, here is their theory.Left Wing Nutters