Wednesday, October 29, 2008

Timeline of a Housing Disaster

With thanks to whomever assembled all this information, and to Dave Peterson for passing it along to me:

  • Congress and President Clinton loosen Home Loan Requirements.[ed.]

  • Fannie Mae is a GSE (Govt. Sponsored Entity) regulated by CONGRESS.

  • Fannie Mae buys mortgages from other companies.

  • It is backed by the TAXPAYERS for all losses, but keeps all profits.

  • Banks begin making thousands of bad loans, zero down, no documentation, for 120% (1998-2008).

  • Executives at Fannie Mae receive huge bonuses if loan targets are met.

  • Franklin Raines & Jamie Garelick from the Clinton Administration are appointed to run Fannie Mae.

  • President Bush proposes a new oversight committee to clean-up Fannie Mae, Congress derails the effort.

    (Rep. Melvyn Watt {D-NC} Committee on Financial Institutions & Consumer Credit, stated, "I don't see much other than weakening the bargaining power poorer families to get affordable housing.")

  • Raines receives $100 million in bonuses.

  • Garelick receives $75 million in bonuses.

  • In 2004, ENRON collapses, Congress investigates, Executives Skilling & Lay go to jail, for fraudulent bookkeeping. Congress responds with the Sorbanes-Oxley Act, more heavy regulation of Corporations.

  • An OMB investigation finds massive fraudulent bookkeeping at Fannie Mae.

  • False numbers triggered executive bonuses every year.

  • Congress held NO hearings, NO ONE goes to jail, or is punished.

  • WHY NOT?

1999 - 2005
  • Fannie Mae gives millions to Democratic causes, examples: Jessie Jackson & ACORN!

  • Fannie Mae pays millions to 354 Congressmen and Senators from both Parties. Who got the most money?
    1. Sen. Christopher Dodd, {D-CT} Chairman Banking, Housing, & Urban Affairs Committee.

    2. Sen. Barack Obama {D-IL} Federal Financial Management Committee.

    3. Sen. Chuck Schumer {D-NY} Chairman Finance Committee.

    4. Rep. Barney Frank {D-MA} Chairman House Financial Services Committee.

  • Franklin Raines & Top Execs are forced to resign from Fannie Mae.

  • They do not go to Jail.

  • There is NO Media "perp. walk."

  • They keep their bonuses.

  • They finally pay $31.4 million in Civil Fines.

  • The Federal Housing Enterprise Regulatory Reform Act is sponsored by: Sen. John McCain {R-AZ} Armed Services, Commerce, Science, and Transportation.
    1. Senator McCain is 325th on the Fannie Mae Pay List.

    2. He stated, "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."

  • None of the top Four on the Fannie Mae Pay List supported the legislation.

  • The Reform Act is blocked by Democrats, never even making it out of the committee.

  • None of the Politicians on the Fannie Mae Pay List return any of the money, tainted by Fraud.

  • Fannie Mae & Freddie Mac go bankrupt and the Govt. Takes them over COMPLETELY.

  • Lehman Brothers, goes bankrupt from investing in bad mortgages.

  • AIG gets 85 million in Loan Guarantees, after insuring bad Loans and Projects.

  • Taxpayers will ultimately pay BILLIONS.

  • Franklin Raines is now an advisor to the "OBAMA CAMPAIGN" which wants the govt. to take over more of the economy.

  • Did Government involvement in the mortgage market work out?

  • How will even MORE government involvement make things better? Do you want to be Sweden?

  • McCain favors revising regulations and loan standards and selling off Fannie and Freddie.

  • New York Times, 9/13/2003.

  • Congressional Record, 5/25/2006.

  • Herald Tribune, 4/18/2008.

  • Hannity & Colmes, Fox News, 9/16-9/17/2008.

  • 9/17/2008. Prof. Dennis Jantz, 2008

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