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

[Superbus]

Want to get rid of the lobbyists. Abolish the income tax by repealing the income tax amendment and replace the current income system with the Fair Tax. That includes medicare and social security taxes which also would be replaced from the proceeds of the Fair Tax.

Then for good measure, institute term limits on the leeches who believe that all the trappings and perks received inside the Beltway are theirs in perpetuity.

[VolvoBirkenstock]

Poor Shortbus. Still posting lies about the Huckafuck tax plan.

[SCG]

lol

[Scott1560]

You nailed it!

[donttasemebro]

You mean the "unfair tax", because it would lead to lower income people paying a much larger share of their income in taxes than higher income people.

[CaptainObvious]

Want to get rid of the lobbyists? Send the busheviks to The Hague to face a war crimes tribunal, and then hang them all.

See? I can do it too.

[TotobiAyokoh23]

America has become a victim of its own holier-than-thou hypocrisy and unbriddled, adulterated capitalism run amuck. As usual, the victims are the ordinary tax payers while the gluttonous nicompoops masquerading within the corridors of power in DC get bail out. Karl Marx must be laughing in his grave!

[CaptainObvious]

We've become the victims of low-information voters and the radical politicians they were tricked into electing.

[gopindrag]

Big money is bad money and to the extent that big money corrupts the Bush administration, to the extent that big money influences regulatory appointments, big government is corrupt government.

[Ammobob]

How is this a revelation? FM and FM owe their existence to the FEDs. Both entities have enjoyed decades of government favoritism. So a 'bail out' isn't surprising, neither is the influence peddling.

[fedup07]

neither is the fact that the shareholders get to reap in all the profits when things are good, and US taxpayers get to foot the bill when things go bad. US taxpayers lose every single time.

[RatgurlSD]

How can I start a company, have it fail, and have the government bail ME out?

[LarsGruber]

which is why both should have stayed government run, instead of being thrown to the Neil Bush's of the world.

[jeffp26]

This is what makes america great. Government supported companies lobby the government, using our money to pay for favors.

Time for a change.

[AcitizenNJ]

it's nice that you inform us that they spent 200 mil and they hired ex gov't officials paying them big bucks, big deal. this is b.s. reporting. tell us what they got for the money, what was there return on this investment. when they lobbied washington and elected officials what was the rewards and who did it go to. get the facts and name some names..... give us something we don't know is going on ???????

[mscriblerus]

Amen! This is just more lazy reporting. You might as well tell us how much got doled out in earmarks. The problem is accountability. Who are the hacks lining their pockets. What goodies are we being sold out for.

[fedup07]

bingo!

[NoMercy]

The American consumer = the world's cash cow.

That was last century's model. Now wait for how high the balloon will fly with Indian and Chinese consumers going into debt!

[bsgunn]

Hey who doesn't like tremendous amounts of corruption in their government.

[ChristianEcon.com]

At least it's "soft" fascism.

[gusvidal]

We expect democrats and republicans won't mention that Fannie and Freddie were and still are mismanaged by their own. Wasting company money lobbying , paying extraordinary salaries and so on. But what is so maddening is the usual media silence regarding this facts. If our government system is so corrupted it is because we have no journalists challenging them for the contrary they are just suckers.

[IowaKid]

Let's elect McSame and how much farther he can take this country down. This is so ridiculous whoever votes for this man has no ethics.

[gifu]

United We Scam.

[CaptainObvious]

Divide Up The Money!

[IowaKid]

And yet in the NY Times all they can say is Obama is not closing the Race Gap. How pathetic is this country???­??????????­??????????

[ggersh]

God Bless Corruptica

[jupitor]

and it all comes to roost in America!

[Chilledogg]

Fannie and Freddy managed this investment to fruition.......

[southafrica4obama]

To all corrupt countries: NEVER LISTEN TO AMERICA.