Diary

Chaffetz and Issa Seek Information on Fannie Mae Executives Inventing New Cap & Trade System

Now here’s a real mystery for you all. Why would Fannie Mae want to take out a patent for a Cap and Trade system? After all, this is a GRE, or Government Regulated Enterprise. If you don’t believe me, here is the patent. If you notice, it says “Raines et al.” June 7, 2005. I have to admit to you all I’ve been out of the news the last couple of weeks, but I am under the assumption this has to do with Glenn Beck’s exposure of CCX in Chicago.

Two US Reps think this is pretty strange as well. They are Rep. Chaffetz (R-UT) and Rep. Issa (R-CA). This is a patent for a “System and Method for Residential Emissions Trading.” They sent a letter on May 13, 2010 to David Kappos, the Director of the U.S. Patent and Trademark Office, as well as Michael Williams, President and CEO of Fannie Mae, seeking information about this patent. As you can see by looking at the patent the “inventors” include Frank Raines, Robert Sahadi, Kenneth Berlin, Michelle Desiderio, Scott Lesmes, Elizabeth Arner Cavey, and Carlton Bartels and the Assignee is Fannie Mae, Washington D.C.

Page 10 of the patent describes the “invention” as a “method of residential emissions trading commodity. It is a method of identifying, quantifying and aggregating reductions in residential emissions into a form which can be traded for consideration.”

The letter from Chaffetz and Issa state:

We are troubled by evidence that, while Fannie Mae was funding hundreds of billions of dollars in risky mortgages that were a primary cause of the financial crisis, it was simultaneously pursuing a patent to capitalize on the potential of legislative efforts that would have the effect of increasing costs to millions of Americans.

The two Reps are requesting information no later than close of business on May 27, 2010. Rep. Chaffetz webpage states that Rep. Issa is quoted as saying:

Fannie Mae appears to have served as a full-blown liberal think tank for crony-capitalist ideas. While the crony-capitalist Democrats who ran Fannie Mae like Franklin Raines and Jim Johnson used these kinds of ideas to enrich themselves, it was the American taxpayers who were left holding the bag after they failed. It’s disturbing that Fannie Mae executives were positioning themselves in 2005 for financial gain from an Obama Administration cap-and-trade system, but given the huge amount of campaign contributions Fannie Mae poured over President Obama it should be no surprise.

How much you wanna bet May 27 comes and goes with no response from Kappos?

Frank Raines, former CEO of Fannie Mae
Frank Raines, former CEO of Fannie Mae

Betcha got your fingers crossed behind your back Frank so the “I swear” doesn’t count.

Crossposted