Fannie Mae, Freddie Mac Spent $200M To Buy Influence

The Politico has an article today detailing the influence Freddie Mac and Fannie Mae have bought in Washington over the past decade. The government-chartered companies had to get bailed out by the Treasury Department and the Federal Reserve earlier this week. To read more about the bailout go here. To read about the millions spent on Washington lobbying see an excerpt below or go here.

If you want to know how Fannie Mae and Freddie Mac have survived scandal and crisis, consider this: Over the past decade, they have spent nearly $200 million on lobbying and campaign contributions.

But the political tentacles of the mortgage giants extend far beyond their checkbooks.

Fed Chairmen Ben Bernanke just told Congress that because of the bailout the companies are "in no danger of failing."

Federal Reserve Chairman Ben Bernanke told Congress Wednesday that troubled mortgage giants Fannie Mae and Freddie Mac are in "no danger of failing."

The Fed chief made his remarks as he appeared before the House Financial Services Committee, in his second day on Capitol Hill to brief lawmakers on the problems plaguing the economy. He appears amid a backdrop of fading confidence in the U.S. financial system and in the national economy.

Comments

[HumeSkeptic]

Fed Chairmen Ben Bernanke just told Congress that because of the bailout the companies are "in no danger of failing."
--------------

Isn't that why the f*cking thing is called a bailout? He had to explain that to the Congress?

[Oldbuck]

Our financial system is so screwed up it will take ten year to straighten out. We have let the lobbyist on K-Street run our economy so long with their special interest clients have made it where a honest business can not make it. Fannie Mae and Freddie Mac were evolved from the need of lenders the replenish their funds so Fred Mac and Fannie Mae were set up to create a secondary market to package mortgage back securities when first started they had very strict underwriting rules. Then the lenders decided that they could learn from the credit card paper that the banks were caring so the put poor risk loans in ARM that would yield greater income therefore cover the risk.

[Sundialsvc4]

When the Framers of our Constitution wrote their document out (in longhand!), they didn't use euphemisms.

When they wrote Article 2, Section 4 (the much-maligned "Impeachment Clause"), they listed two "high crimes" by name: treason, and bribery.

They didn't use euphemisms like "campaign contribution" instead of "bribe."

They obviously considered "bribery" to be just-as-reprehensible as "treason."

Hmm... maybe they were on to something.

[frappe]

It's an outrage what is allowed today. Reprehensible and unforgivable. These are BRIBES plain and simple. And they are destroying our country.

[sven1olaf]

here here

[ChiMan1]

Do you have to be Ignorant to Post on this subject at HuffPost? . or does it just help!

[VolvoBirkenstock]

Doesn't help you, name tr0ll, or your confreres on the right.

We can see through your ignorance at first glance.

What did ChiGuy do to tick you off enough that you would tr0ll the name?

Show you to be ignorant?

[WLA]

You may have just answered your own question.

[ZHarris]

That's one way to prove your argument...

[HumeSkeptic]

No you don't have to be ignorant. Go ahead, enlighten us with your wisdom.

[Burfee]

United States government should be ranking at the top of most corrupt nations on earth Index. China would be ashamed by this achiviement by USA.

[Rumplestiltskin]

You don't get around much.

[HumeSkeptic]

Going by the amount of $$ involved, you might be right.

[BPCentrisAmerican]

In China a quick trial than an even quicker hanging.

[PixieThis]

Long article, but good.

http://www.harpers.org/archive/2008/05/0082023

[HumeSkeptic]

Thanks. I marked it for later reading. If you recommend it, it must be good.

[PixieThis]

The original recommendation came from Groucho, which should up the cred on that link :)

[donaldw6]

I just read it, and it's fascinating. We all know how off the wall the numbers on unemployment and inflation are, but this puts it in a very readable historical context. It's not overly long, either.

I suspect the real numbers would show an economic disparity that would make us wistful for the Gilded Age. But if we knew those things, we might actually revolt.

[sven1olaf]

tks... absolutely fantastic article =]

[vippy]

Thank you for a very enlightening article and the link.

[VolvoBirkenstock]

Gordon
as is your bitterness and general dissatisfaction with your life
Posted 03:24 PM on 07/16/2008

nodrog woke up on the wrong side of the bed again today.

Alone, as is usual.

[williamg]

I really have to question Obama's judgement for one reason alone: Why would he want to be responsible for fixing this disaster?

[vippy]

Yes, I asked the same question. Unless you figures he too can cash in like the rest until we
hit rock bottom, which has to come!

[saibotchilizm]

Big corporations want their risk to be socialized, and their profits to be privatized. It's the height of dishonesty and sleaziness, especially since the tax dollars they receive in bailouts could be spent on our decaying infrastructure, schools, and our walking disaster of a healthcare system.

Welcome to the globalized world.

http://www.saibotchilizm.org

[ChimpyMcCokespoon]

Yep, Just call them the "Party of Responsibility"

[williamg]

How many companys are going to be bailed out before Bush leaves office?

The Republican party has become the Socialist party. Barry Goldwater must be spinning in his grave.

[letsgetsmart]

Two hundred millions sounds like a big number but it was over decades. The people in this country that a lot of us are ticked at bought the major news networks. I wonder how those dollars compare? The top five ceo's made more then that just last year.

[VolvoBirkenstock]

A moment of silence
http://www.huffingtonpost.com/users/profile/tonyalove

[andvoodoo2]

HAHAHAHA!!!!!!!!!!!!!

[SCG]

LOL

[RobertaInCT]

I Love it.....................:)

[donaldw6]

*sniff*

[Vantunow]

http://www.marketoracle.co.uk/Article2522.html

[darthdarcy]

Obama's biggest contributors are those of Goldman Sachs the same people manipulating the Oil Futures Market and authors of the Goldman Sachs Loophole...

[Ammobob]

Another BAILOUT !?! Let's have the largest two single mortgage holders tank. That way the LIBS not only get their much hoped for RECESSION, they get a full blown DEPRESSION. Then SUPER BS ARTIST NObama can come to OUR rescue and save us from ourselves. Wait, if both these FM's tank, the next President will inherit a catastrophe and spend the 4 or 8 years making excuses. This could be a WIN-WIN.

[VolvoBirkenstock]

My my. Littlebullet is approaching the meltdown stage.

Must have finally realized how bad this November is going to be for those to whom he is a sycophant.

[Superbus]

A little snarky today, eh YugoPayless?

[Superbus]

Obama proposes taking more money out of the hands of the taxpayers. How is that going to help the current state of the economy?

[trollsbwild]

No one wants a recession or depression. However, why are you attacking those who shine a light on corruption?
Seems bushco is using the scortched earth tactic on the war and on our economy. Doesn't look like much will be left come January 20, 2009. Accordingly, the consequences to date are already "catastrophic"
Finally, as making excuses go, did you happen to listen to Bush yesterday denying responsibiliy for the cluster F he has created?

[williamg]

What world do you live in? Reading is obviously not a requirement before commenting on a subject in your world. It is the Republican administration that at work bailing them out.

Under a Republican administration and Republican Congress, we have seen:

Surplus turned into a $400 billion deficit.
National debt DOUBLE
Banking industry collapse
Housing industry collapse
Inflation skyrocket to highest rate in 26 years
Real wages stagnant or declining for first time during an expansion in 70 years
Yet another entitlement program (prescription drug plan)

There is nothing Conservative about the Republican party, and they are proving themselves - with this new bailout - to be quite Socialist.

[ChimpyMcCokespoon]

Uh, National Socialist.....

[trollsbwild]

Thanks, Will. My response to Bob did not post. No profanity, etc. Somewhat frustrating though.

Anyway, spot on post.

[WLA]

The next President is already going to be inheriting multiple catastrophes thanks to ideologues voting for neocons.

[SCG]

isn't that the truth.