New York Post: Rahm Emanuel Freddie Mac board member during fraud years.

Funny how this sort of thing takes forever to make the papers. From Dick Morris and Eileen McGann:



Consider: Emanuel served on the Freddie Mac board of directors during the time that the government-backed lender lied about its earnings, a leading contributor to the current economic meltdown.

The Federal Housing Enterprise Oversight Agency later singled out the Freddie Mac board as contributing to the fraud in 2000 and 2001 for “failing in its duty to follow up on matters brought to its attention.” In other words, board members ignored the red flags waving in their faces.

The SEC later fined Freddie $50 million for its deliberate fraud in 2000, 2001 and 2002.

Meanwhile, Emanuel was paid more than $260,000 for his Freddie “service.” Plus, after he resigned from the board to run for Congress in 2002, the troubled agency’s PAC gave his campaign $25,000 – its largest single gift to a House candidate.

That’s what friends are for, isn’t it?

Well, during Democratic administrations, that is. During Republican ones the equivalent revelation would have probably shown up in the analogue’s first Congressional bid.

What complicates the issue is that it’s probably impossible to prove that Obama Chief of Staff Emanuel was actively involved in anything actually illegal. Nonetheless… he does have a certain willingness to push the envelope, doesn’t he? The NYP article notes the free rent, notes the fact that it was never disclosed – and even notes that the guy giving Emanuel the free rent made over six hundred thousand dollars in contracts that Emanuel oversaw. The authors end by asking:

The president’s chief of staff isn’t subject to Senate confirmation, but his ethics still matter. Is this the change that we can depend on?

The answer is: No, this isn’t change at all. This is John Edwards’ Two Americas, and Rahm Emanuel is merely living his life by the rules of the America that isn’t yours or mine. Wasn’t that obvious already?

Moe Lane

Crossposted at Moe Lane.