Obama's $26 Million Fannie Mae Be-atch
Her name is Jamie Gorelick. She was the principal architect of Al Qaeda’s ability to plan and execute the 9-11 attacks under US intel’s radar. She took $26 Million in six years from Fannie Mae by ordering accountants and internal auditors to falsify records and forge documents so ensure that she, Jim Johnson, Franklin Raines, and other Democrat executives at Fannie received maximum bonuses.
Lehman Brothers collapse is traced back to Fannie Mae and Freddie Mac, the two big mortgage banks that got a federal bailout a few weeks ago.
Fannie and Freddie have also been places for big Washington Democrats to go to work in the semi-private sector and pocket millions. The Clinton administration’s White House Budget Director Franklin Raines ran Fannie and collected $50 million. Jamie Gorelick – Clinton Justice Department official – worked for Fannie and took home $26 million. Big Democrat Jim Johnson, recently on Obama’s VP search committee, has hauled in millions from his Fannie Mae CEO job.
Jamie Gorelick is considered the front runner for Attorney General should Barack Obama win. She needs that job to keep herself out of prison.
The Virginia Patriot exposes the scam that Obama’s chief legal and economic advisors ran at Fannie Mae–the scam that, according to Obama, has brought the world to the brink a great economic depression:
This flexibility also gave Fannie the ability to manipulate earnings to hit – within pennies – target numbers for executive bonuses. Ofheo details an example from 1998, the year the Russian financial crisis sent interest rates tumbling. Lower rates caused a lot of mortgage holders to prepay their existing home mortgages. And Fannie was suddenly facing an estimated expense of $400 million.
Well, in its wisdom, Fannie decided to recognize only $200 million [of losses], deferring the other half. That allowed Fannie’s executives – whose bonus plan is linked to earnings-per-share – to meet the target for maximum bonus payouts. The target EPS for maximum payout was $3.23 and Fannie reported exactly . . . $3.2309. This bull’s-eye was worth $1.932 million to then-CEO James Johnson, $1.19 million to then-CEO-designate Franklin Raines, and $779,625 to then-Vice Chairman Jamie Gorelick.
As for other losses, they were routinely mischaracterized so that they could be amortized over years, not realized fully as they were supposed to be. By this method, the Fannie Mae management siphoned off millions of dollars in excess compensation to top management, including Gorelick. [source]
When he ran for president in 1996, Pat Buchanan spoke of “peasants with pitchforks” demanding retribution for the excesses of American power merchants like Gorelick, Raines, and Johnson, and their customers like Barack Obama.
Some will argue that Gorelick, Raines, and Johnson were not criminals, but mere incompetents. Okay, then who appointed such idiots? How did they get jobs so powerful that they could destroy the US economy?
I don’t buy the idiot argument. Gorelick is a master manipulator who got herself appointed to the 9-11 Commission so she could cover her lethal tracks. She as similarly positioned herself to become AG so she can prosecute the innocent, protecting herself and her enablers in the Democrat party, including Barack Obama, the veritable Senate slave purchased for $42,000 a year. (BTW, Obama was the most expensive Congressman Fannie Mae and Freddie Mac purchased viewed from a cost-per-year perspective.)
According to WSJ.com, Gorelick was also a kingpin in the Countrywide-Fannie Mae-Democrat money laundering operation that contributed to the current crisis:
Countrywide Financial Corp., the biggest U.S. mortgage lender, made large, previously undisclosed home loans to two additional executives of Fannie Mae, the government-chartered firm at the center of the U.S. credit crisis.
One of Countrywide’s previously undisclosed customers at Fannie was Jamie Gorelick, an influential Democratic Party figure whose $960,000 mortgage refinancing in 2003 was handled through a program reserved for influential figures and friends of Countrywide’s chief executive at the time, Angelo Mozilo. Ms. Gorelick was Fannie Mae’s vice chairman at the time.
The Fannie loans – including a series of already reported preferential loans to former Fannie chief executives James Johnson and Franklin Raines – underscore the close connections between Countrywide and Fannie Mae and raise potential conflict-of-interest issues.
Here is breakdown of those preferential loans from the Wall Street Journal:
In 2002, Gorelick defended Fannie Mae and attacked Republicans for threatening investigations into FNMA in light of Enron’s downfall. From BusinessWeek:
In the wake of the Enron disaster, Federal National Mortgage Assn. (Fannie Mae) and Federal Home Loan Mortgage Corp. (Freddie Mac), the federally chartered mortgage banks that experienced explosive growth in 2001, have come under increased scrutiny. Once again, Republicans in Congress are threatening to conduct an investigation into the activities of the two – No. 7 and No. 2, respectively, on this year’s BusinessWeek 50 list of top performers – some say in hopes of revoking the portions of the Fannie and Freddie charters that gives an implicit government guarantee to their borrowing.
Gorelick’s select responses:
We believe we are managed safely. We are very pleased that Moody’s gave us an A-minus in the area of bank financial strength – without a reference to the government in any way. Fannie Mae is among the handful of top-quality institutions. Also, we are very highly regulated. We have auditors. We have examiners here on premises every day. And we have consistently exceeded every standard that the examiners have set for us.
Of course–except that Democrats in Congress accused those regulators of racism for even looking at Fannie Mae’s books. Regulations do no good of regulators aren’t allowed to report their results.
We are very well protected against credit losses, which fell to their lowest level in a generation – since 1983 – last year. They went from four basis points [0.04%] down to under one basis point [0.01%] of our outstanding portfolio. We believe that while credit losses may rise somewhat in the aftermath of the recession, they are likely to remain quite low in 2002.
We now know that all of the numbers Gorelick cited were lies–manipulations to maximize her bonuses.
Well, our business is backed by homes with a considerable amount of equity. When I tell people that our portfolio consists of homes with an average equity exceeding 40% of market value, they are astonished.
I bet they were astonished, particularly since we now know that Gorelick was inventing these numbers from whole cloth. Anyone who knew her business would have been astonished.
We also follow the trends in credit. We follow all the macroeconomic indicators to most effectively manage credit losses. So we’re pretty confident that we should do fine. Obviously we don’t have a crystal ball here, but we are basing our projections, which have been pretty accurate over the years, on the numbers we currently have available to us.
Whatever. Criminal or criminally incompetent, Gorelick has no business walking the streets a free woman, much less as chief law enforcement officer in the free world.
Perhaps when families are living in “Obamavilles” that used to be city parks, the American people will finally grab their pitchforks and descend upon the White House and Capitol.
Two years later, Franklin Raines resigned in disgrace and agreed to give back his worthless stock options. His bought-and-paid-for Democrats in Congress ensured neither he nor Gorelick would see jail time because of their blatant fraud at Fannie Mae. Nor was either miscreant required to return the millions they stole from tax payers. Nor are they on the hook for the $200,000,000,000 in bailouts directly to Fannie and Freddie nor the $700,000,000,000 in bailouts to the rest of the mortgage industry they destroyed.