According to OpenSecrets.com, from 1989 to 2008, Dodd received $165,400 in Fannie Mae and Freddie Mac campaign contributions, including contributions from PACs and individuals, followed by Obama, who received $126,349 in such contributions since being elected to the Senate in 2004.

In contrast, McCain warned of the coming mortgage crisis as he pressed in 2005 for regulatory reform of Fannie Mae and Freddie Mac.

"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," McCain said on the floor of the Senate in 2005, speaking in favor of the Federal Housing Enterprise Regulatory Reform Act of 2005.

McCain pointed out Fannie Mae's regulator had stated 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 bill passed the House but was never brought up for a vote in the Senate, largely because of Democratic opposition to change in the Fannie Mae and Freddie Mac regulatory structure that remained in place until the Treasury takeover two weeks ago.

As evidenced by the failure to pass the Federal Housing Enterprise Regulatory Reform Act of 2005, the Democrats in Congress have repeatedly fought back Republican Party efforts to reform the two mortgage banking giants.

Instead, Democrats in Congress have sought to preserve the quasi-governmental status of the mortgage giants, seeing Fannie Mae and Freddie Mac as places to locate former top Democratic Party operatives, where they have earned millions in compensation, despite a continuing series of financial scandals. Enron-like accounting manipulation, for example, boosted earnings to a level at which massive executive bonuses could be paid.

In the aftermath of the U.S. government takeover, attention has focused on three Democrats with close ties to Obama who served as Fannie Mae executives: Franklin Raines, former Clinton administration budget director; James Johnson, former aide to Democratic Vice President Walter Mondale; and Jamie Gorelick, former Clinton administration deputy attorney general.

All three Obama-related executives earned millions in compensation from Fannie Mae.

Johnson earned $21 million in just his last year serving as Fannie Mae CEO from 1991 to 1998; Raines earned $90 million in his five years as Fannie Mae CEO, from 1999 to 2004; and Gorelick earned an estimated $26 million serving as vice chair of Fannie Mae from 1998 to 2003, according to author David Frum, a fellow at the American Enterprise Institute.

All three have been involved in mortgage-related financial scandals.

In 1998, according to the Washington Post, Gorelick, as Fannie Mae vice chairman, received a bonus of $779,625, despite a scandal in which employees falsified signatures on accounting transactions to manipulate books to meet 1998 earning targets. The moves, in turn, triggered multi-million-dollar bonuses for top executives.

Gorelick was embroiled in another controversy over an alleged conflict of interest when a 1995 memo she authored as deputy attorney general surfaced while she was a member of the 9/11 commission.

The memo, which became known as the "Gorelick Wall," appeared to establish barriers that barred federal anti-terrorist criminal investigators from accessing various federal records and databases that may have assisted them in their criminal investigations.

According to the Associated Press, Raines and several other Fannie Mae top executives were ordered in a civil lawsuit to pay nearly $31.4 million for manipulating Fannie Mae earnings over a period of six years to trigger their massive bonuses.

Raines was also forced in the settlement to give up Fannie Mae stock options valued at $15.6 million.

Last year, the Securities and Exchange Commission alleged Freddie Mac had engaged in accounting fraud from 2000 to 2002, imposing a $50 million fine on the company and on four executives fines for amounts ranging from $65,000 to $250,000.

Raines currently advises Obama on housing policy.

Johnson was appointed to head Obama's vice presidential selection committee, until a controversy concerning an alleged $7 millions in questionable real estate loans he received on favorable terms from failed sub-prime mortgage lender Countrywide Financial surfaced and forced him to step down.

WND previously reported a panel chaired by Elena Kagan, dean and professor of law at Harvard Law School, speculated at the June two-day meeting of the American Constitution Society that Gorelick was a possible attorney general cabinet appointment if Obama should be elected president.

The decision by the U.S. Treasury to take over Freddie Mac and Fannie Mae could end up costing the U.S. taxpayer as much as $100 billion, although the extent of losses at the two giant mortgage companies remains to be determined.

According to the Wall Street Journal, Freddie and Fannie own or guarantee about $5.2 trillion worth of mortgages.

The riskiest loans held by Freddie and Fannie are known as "Alt-A" and sub-prime mortgages, worth about $780 billion, or about 15 percent of the total portfolio.

The federal government takeover of Freddie and Fannie passes to U.S. taxpayers the contingent liability for failures in the entire $5.2 trillion loan portfolio held by the two mortgage giants.

Over the past four quarters, Freddie and Fannie have suffered losses of about $14 billion, as the mortgage market has been hit by a wave of defaults and foreclosures not seen in the U.S. since the 1930s.

By Jerome R. Corsi
September 17, 2008

http://www.worldnetdaily.com/index.php?pageId=75586

Hat tip: Dick Doubek

« Close It

As incredible as this plan may seem to some readers, the first Trans-Texas Corridor segment of the NAFTA Super Highway is ready to begin construction next year. Various U.S. government agencies, dozens of state agencies, and scores of private NGOs (non-governmental organizations) have been working behind the scenes to create the NAFTA Super Highway, despite the lack of comment on the plan by President Bush. The American public is largely asleep to this key piece of the coming “North American Union” that government planners in the new trilateral region of United States, Canada and Mexico are about to drive into reality.

Just examine the following websites to get a feel for the magnitude of NAFTA Super Highway planning that has been going on without any new congressional legislation directly authorizing the construction of the planned international corridor through the center of the country.

NASCO, the North America SuperCorridor Coalition Inc., is a “non-profit organization dedicated to developing the world’s first international, integrated and secure, multi-modal transportation system along the International Mid-Continent Trade and Transportation Corridor to improve both the trade competitiveness and quality of life in North America.” Where does that sentence say anything about the USA? Still, NASCO has received $2.5 million in earmarks from the U.S. Department of Transportation to plan the NAFTA Super Highway as a 10-lane limited-access road (five lanes in each direction) plus passenger and freight rail lines running alongside pipelines laid for oil and natural gas. One glance at the map of the NAFTA Super Highway on the front page of the NASCO website will make clear that the design is to connect Mexico, Canada, and the U.S. into one transportation system.

Kansas City SmartPort Inc. is an “investor based organization supported by the public and private sector” to create the key hub on the NAFTA Super Highway. At the Kansas City SmartPort, the containers from the Far East can be transferred to trucks going east and west, dramatically reducing the ground transportation time dropping the containers off in Los Angeles or Long Beach involves for most of the country. A brochure on the SmartPort website describes the plan in glowing terms: “For those who live in Kansas City, the idea of receiving containers nonstop from the Far East by way of Mexico may sound unlikely, but later this month that seemingly far-fetched notion will become a reality.”

The U.S. government has housed within the Department of Commerce (DOC) an “SPP office” that is dedicated to organizing the many working groups laboring within the executive branches of the U.S., Mexico and Canada to create the regulatory reality for the Security and Prosperity Partnership. The SPP agreement was signed by Bush, President Vicente Fox, and then-Prime Minister Paul Martin in Waco, Tex., on March 23, 2005. According to the DOC website, a U.S.-Mexico Joint Working Committee on Transportation Planning has finalized a plan such that “(m)ethods for detecting bottlenecks on the U.S.-Mexico border will be developed and low cost/high impact projects identified in bottleneck studies will be constructed or implemented.” The report notes that new SENTRI travel lanes on the Mexican border will be constructed this year. The border at Laredo should be reduced to an electronic speed bump for the Mexican trucks containing goods from the Far East to enter the U.S. on their way to the Kansas City SmartPort.

The Texas Department of Transportation (TxDOT) is overseeing the Trans-Texas Corridor (TTC) as the first leg of the NAFTA Super Highway. A 4,000-page environmental impact statement has already been completed and public hearings are scheduled for five weeks, beginning next month, in July 2006. The billions involved will be provided by a foreign company, Cintra Concessions de Infraestructuras de Transporte, S.A. of Spain. As a consequence, the TTC will be privately operated, leased to the Cintra consortium to be operated as a toll-road.

The details of the NAFTA Super Highway are hidden in plan view. Still, Bush has not given speeches to bring the NAFTA Super Highway plans to the full attention of the American public. Missing in the move toward creating a North American Union is the robust public debate that preceded the decision to form the European Union. All this may be for calculated political reasons on the part of the Bush Administration.

A good reason Bush does not want to secure the border with Mexico may be that the administration is trying to create express lanes for Mexican trucks to bring containers with cheap Far East goods into the heart of the U.S., all without the involvement of any U.S. union workers on the docks or in the trucks.

Link to the above article: http://www.humaneventsonline.com/article.php?id=15497

------------------------------------
Red State Patriot commentary: It makes you wonder what happened to the Constitution? Where does Congress fit into all of this? What legislation or treaty specifically authorized this action? What do the state governments have to say? What do the labor unions have to say? Who consulted with the American people to see if they wanted to become part of a North American Union? Any guess who is paying for all of this?

The best thing you can do now is become informed by reviewing each of the following linked articles:

Texas Segment of NAFTA Super Highway Nears Construction http://www.humaneventsonline.com/article.php?id=15682

North American Union Already Starting to Replace USA http://www.humaneventsonline.com/article.php?id=15233

President Quietly Creating 'NAFTA Plus' http://www.humaneventsonline.com/article.php?id=15059

The Plan to Replace the Dollar With the 'Amero' http://www.humaneventsonline.com/article.php?id=15017

North American Union to Replace USA?http://www.humaneventsonline.com/article.php?id=14965

« Close It