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seems to me GW and his cronies aka: Republicans had alot to do with those appointed and responsible for todays fiasco
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can you read?
The seeds for this were planted in the 1970's
Clinton expanded it
Bush warned of it in 2002- Dems palyed the race card
McCain tried to pass a bill for over sight in 2005- Dems played the race card.
Testimony: Accounting Irregularities at Fannie Mae (Chairman Christopher Cox, June 16, 2006) Quote:
Christopher Cox, R-Calif.,
On May 23rd, the Commission and the Office of Federal Housing Enterprise Oversight jointly announced settlements with Fannie Mae for accounting fraud. The settlements require the company to pay a penalty of $400 million. This is a meaningful penalty designed to deter future misconduct. Moreover, as a result of the Fair Fund provisions of the Sarbanes-Oxley Act, most of the penalty will likely be used to compensate defrauded investors. Both Director Lockhart and I agree that a penalty of this size represents a meaningful sanction that is necessary to address the egregiousness of Fannie Mae's conduct. Fraudulent financial reporting directly undermines the fairness of our capital markets, and the very purpose of those markets to allocate capital to its best uses.
The Commission's action alleges that Fannie Mae misstated its financial statements from at least 1998 through 2004.
As you well know, the securities issued by Fannie Mae are "exempt securities" under current laws administered by the SEC
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Excempt from SEC laws. It is a GSE.
CEI President Testifies on Fannie Mae, Freddie Mac | CEI Quote:
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Fannie and Freddie were granted special privileges in their charters. They are exempt from SEC registration (an exemption estimated to save them hundreds of millions annually) and from state and local taxes (another “savings” in the hundreds of millions – and one that is especially troubling here in the District of Columbia). Banking rules allow their securities to be held in unlimited amounts by banks and other deposit-insured institutions (based on the presumption that they are somehow “riskless” securities). They were also granted an explicit line of credit from the Treasury. Most importantly, there is a widespread presumption that in the event of problems, the full faith and credit of the U.S. government will be called upon – that Fannie/Freddie are Too Big To Fail!
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The mere fact that the MSM is NOT looking deeper than the surface pretty much means that this Dems mess and they are just trying to pass the buck (as usual). No responsibility, its always someone elses fault. Dodd, Frank, Johnson, Raines all need to be the first picked up by the FBI.