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

[NewsCorpse]

McCain has already ditched 6 aides due to their lobbyist connections. He still has 15 on staff including top strategist and uber-lobbyist Charlie Black.

Expect more scandals to erupt. It's inevitable when you have this much corruption woven into your campaign.

My answer to McCain: http://www.crasscommerce.com/product_info.php?products_id=390

[paixa3]

Read nearly any headline and it implies that the USA is a rather decadent, corrupt nation...particularly GOVERNMENT.

Geezuzz, when are people going to start going to prison?

[MikeMidCity]

This is exactly why we need to get the influence of money out of politics in America. Our democracy shouldn't be run on the gasoline of money seeking influence.

Freedom of speech is not equated to money. Democracy is about the human citizens of a nation not the corporate citizens of a nation.

Corporate citizens are increasingly international in scope and owning allegiance to no one country only profits for owners.

[Superbus]

FYI - The United States of America is not, and never was a democracy. Our Founding Fathers feared mob rule.

[robodweeb]

Don't tell B u s h. He thinks democracy is the solution to everyone's problems and if he finds out we're not he might invade and liberate us.

[donaldw6]

James Madison believed the goverment's role was "to protect the minority of the opulent from the majority."

So you're right, and it continues to this day, as this story attests. It's almost always been the same in the long history of civilization. But that doesn't make it desirable.

[RatgurlSD]

I agree about the whole money thing. I've always thought that politicians should be public servants. As such, I think their paychecks should be equivalent to the median American income, and their constituents should have to vote on whether or not they are doing well enough to deserve a bonus. Boy, THAT would change things!

[nerakami]

The GOP chickens are coming home to roost

Cluck...cluck... they say one to another
gather hither to collect the spoils
pluck..pluck... all lined up,
one by one like chicks in a row

taking food from the mouths
of the American people
hunger has a way of opening one's eyes
and they that were blind, at last can see
and the children of the land
shall have their day of reckoning

woe be to all as Karma shall prevail.

[mathme]

I stopped at "hither."

[RatgurlSD]

I stopped at "chickens"

[BradPittsburgh]

This story can not be true because the liberals tell you it is only the republicans that are corrupt.

[VolvoBirkenstock]

BradPittsburgh
I belong to a very large group that will work very hard to see to it Mrs. Clin ton receives the nomination. Barry can not defeat the Republican nominee.
posted 07/12/2008 at 19:34:34

Run along, fraud

[rfstevens]

I can't believe it myself, but I am on your side.

[WLA]

What a maroon. Who lets these children near computers?

[HEYWOODRFLOYD]

Why is it so hard for you who are working so hard to see to it that Mrs. Clinton underhandedly wins the nomination to realize that if she succeeds in doing so, she will not see any more than, say, 20% of current Obama supporters show up for her on election day? If that many. Do you seriously think that infuriating the many, many millions of Obama supporters will actually help Hillary defeat McCain?

Run along, fool.

[Superbus]

If you pay attention, you'll notice that many of the leftwingers here favor the fascist tactic of criminalizing political differences their opponents have.

[WLA]

If it walks like a crimal and it quacks like a criminal...

[robodweeb]

Not that it's only Republicans but that they're so much more prolific and adept at it.

[TyTy121]

of course you have liberals that are corrupt, but I say to you that more of big money corruption is caused by the conservative republicans.

[NoblesseOblige]

In Washington money talks. It's what makes DC the capital of "capitalism".

[zizyphus]

All of our resources must be spent on making Wall Street happy. Nothing else matters. When those crumbs are falling off their golden plates, America, be on your knees under the table to receive them.

I am thinking of the hundreds and hundreds and hundreds of billions of dollars our putrid government has spent on Wall Street so far. And the trillions on the war.

Now, I am thinking how much better off the country would be, if instead, each American had been handed a million dollars.

Yes, for what we have spent, each American could have received their own million bucks.

What would you do with yours?

[WLA]

http://www.youtube.com/watch?v=Ih-uKlHuC6s

[YouThinkAndTalk]

I wish a clever accountant would sit down and put all these expenses, direct and indirect, on a balance sheet and tell us how much is Wall Street costing us, the proponents of free enterprise, my foot.

This is called privatizing profits and socializing expenses. But you can call it whatever you wish; I am sick and tired of words. I want to see numbers.

It can't be that difficult. Please, please, with sugar on top!

[Superbus]

Congress, in its great wisdom, mandated that all TV must be broadcast in HD by February 2009. Since many can't afford new HD TV receivers, Congress in its infinite wisdom is appropriating from the overtaxed citizenry $40 to each person who wants a "free" converter box.

I guess it's free if you are a tax consumer, not a tax payer. Over 44 million income earners pay zero income taxes.

Fair Tax is the best lobbyist reform.

[VolvoBirkenstock]

The war of choice you support will have to be paid for.

Get ready, shortbus.

There is a tidal wave coming in November.

[LarsGruber]

Superbus lives in a freeloader welfare state.

He's not in any position to talk about fiscal responsibility.

[HumeSkeptic]

Thanks for looking out for us taxpayers. If you want a couple of bucks more to get that box, let us know, Superbus.

[lornejl]

Those lazy dead enders are placing the tax burden on God ! ( god=corporations )

[SCG]

44 million income earners pay zero

I'm sure they frequent business, which do.

Poverty sucks, welcome to your Republican utopia.

[Helpknot]

The claim of a bailout is inaccurate. Paulson has asked for a set of authorizations intended to counter the psychology of the market. There have been outright lies spread about soild institutions by people with very large short positions. Paulson intends to make it clear that the US gov't will stop those individuals from manipulating the markets. That was a two pronged attacked on these sleazeballs from Chris Cox and Hank Paulson yesterday, and Bernake was standing with them both today, as he should have. I don't like the current administration anymore than the rest of us here. Fannie and Freddie may need to be restructured, and in either direct as far as I am concerned, private or public. But the first step is to stabilize the situtation in the short term, and that may have well suceeded today. I would point out that we are also sending Number 3 at State, Burns, over to a meeting in Switzerland, where the Iranians will be present. He is obviously going to be carryying a face to face message. The question is, does he carry a message from Condi Rice or Dick Cheney? The rapid decline in the crude oil market the past two days could be interpreted to suggest the former. BushCo may have also come to the decision that getting the price of oil down is now the only way to get McCain elected, and only a McCain win would secure their secrets for another four years or longer.

[Superbus]

Isn't it interesting that Trent Lott, well heeled new lobbyist, former senator (R-MS) retired from the Senate just days before new legislation went into effect barring former senators from personally lobbying members of Congress for two years.

Term limits. Pass the Fair Tax. Cut the blood supply from the leeches.

[HumeSkeptic]

I say catch the crooks, the Republicans, not punish everyone just because Republicans are crooks.

[WLA]

Agreed, those Republicans are crooks.

[southafrica4obama]

shocking:
Johnson headed Fannie Mae from 1991 to 1998, leaving with a $21 million payout. Even after he left, Fannie continued to pay him an annual fee of at least $300,000 a year for consulting services and a $71,000 monthly pension, according to filings with the Securities and Exchange Commission.

From 2001 to 2005, Fannie also paid for Johnson’s support staff, communications services and provided him a car and driver.

[karela]

The problem with lobbyists wielding too much power goes to the core of what Obama has been running on from the very beginning. He does not employ or accept donations from federally registered lobbyists and this story is the very reason that he doesn't. It makes no sense to allow lobbyists and their huge cash infusions to dictate the laws of the nation. When they do, most Americans are not represented by our laws. In the rest of the developed countries, lobbying is illegal. We need to make it illegal in America too.

America can not afford to let Freddie and Fannie die at this point in time because the consequences to the country would be grave.

Deregulation was a very bad mistake that needs to be remedied.

Obama is the only politician who has ever run for president in recent history without taking their money and who has made an effort to bring this problem to the forefront of American thinking. I guess we're all aware of it now.

[fedup07]

I've said it before and I'll say it again. This is the most corrupt government since the Robber Barons of the Gilded Age right before the Panic of 1893 (which lead to a deep depression lasting until 1897).

Let's see if HuffPo allows the post. Lately, HuffPo has been adverse to truthful statements about the US government and censoring lots of comments.

[CaptainObvious]

What's with all the paranoia lately about HuffPo censorship? 95% percent of my comments get through. Sometimes I need to be patient and wait for approval. Perhaps that could work for you too.

[donaldw6]

Ever try posting on the weekend? I've given that up.

[GoCards1978]

Well said, fellow history fan. I've been saying the same thing for over 5 years now. The difference is that a depression now would last longer than the Great Depression since the feds flushed manufacturing out of our economy.

[karela]

National Public Radio cited expert opinion last week that the government would never allow Fannie and Freddie to go broke because if it did, the result would be a massive and unrelenting recession or even a possible depression. I'm sure that none of us want that. On the other hand, regulation is certainly in order. It is unreasonable to say that Obama's experience with Jim Johnson is akin to McCain's experience with his campaign manager, Rick Davis. Davis has worked for McCain campaigns beginning eight years ago. He took a year off from his lobbying firm to avoid ethical questions, but according to the Washington Post his firm, and he, have made a lot of money signing up new clients who hope to gain from Davis's close association with McCain. On the other hand, Johnson was first reported to be vetting Vice Presidential Candidates for Obama on May 22, 2008 and was let go by the campaign on June 12, 2008. He was connected to the campaign for three weeks and was let go when the campaign became aware of his extra good loan deal.

[JJ30]

And you're surprised by this???? This is the gov't you're talking about. Corruption is everywhere. That's the only way to get ahead in Washington