Google Groups no longer supports new Usenet posts or subscriptions. Historical content remains viewable.
Dismiss
The Economic Meltdown: Accountability Check
2 views
Skip to first unread message
Michael Ejercito
Jul 7, 2012, 7:22:13 PM7/7/12
to
http://ethicsalarms.com/2012/07/06/the-economic-meltdown-accountability-check/
The Economic Meltdown: Accountability Check
The ethics story of week was the dropping of the missing shoe in the
“Friends of Angelo” scandal that helped drive Democratic Senator and
party leader Chris Dodd into retirement. (More here.) It fell like
this:
WASHINGTON (AP) — The former Countrywide Financial Corp., whose
subprime loans helped start the nation’s foreclosure crisis, made
hundreds of discount loans to buy influence with members of Congress,
congressional staff, top government officials and executives of
troubled mortgage giant Fannie Mae, according to a House report.
What the report indicates is that the bribery of regulators and
members of Congress to allow the sub-prime mortgage con-game to
continue was far worse and for more widespread than anyone realized.
Countrywide offered special loan deals to dozens of influential
government officials to stave off regulations that might have avoided
or greatly lessened the mortgage collapse that triggered the current
long-term economic crisis:
“Documents and testimony obtained by the committee show the VIP loan
program was a tool used by Countrywide to build goodwill with
lawmakers and other individuals positioned to benefit the company,”
the report said. “In the years that led up to the 2007 housing market
decline, Countrywide VIPs were positioned to affect dozens of pieces
of legislation that would have reformed Fannie” and its rival Freddie
Mac, the committee said.“
More:
“The Justice Department has not prosecuted any Countrywide official,
but the House committee’s report said documents and testimony show
that Mozilo and company lobbyists “may have skirted the federal
bribery statute by keeping conversations about discounts and other
forms of preferential treatment internal. Rather than making quid pro
quo arrangements with lawmakers and staff, Countrywide used the VIP
loan program to cast a wide net of influence….If Countrywide’s
lobbyists, and Mozilo himself, were more strictly prohibited from
arranging preferential treatment for members of Congress and
congressional staff, it is possible that efforts to reform (Fannie and
Freddie) would have been met with less resistance,” the report
said….Fannie Mae assigned as many as 70 lobbyists to the Financial
Services Committee while it considered legislation to overhaul the
company from 2000 to 2005. Four reform bills were introduced in the
House during the period, and none made it out of the committee.”
Among the individuals being so courted and who were secretly and
illegally assisted by Countrywide were:
Former Senate Banking Committee Chairman Christopher Dodd, D-Conn.
Senate Budget Committee Chairman Kent Conrad, D-N.D.
Mary Jane Collipriest, who was communications director for former
Sen. Robert Bennett, R-Utah, then a member of the Banking Committee.
Rep. Howard “Buck” McKeon, R-Calif., chairman of the House Armed
Services Committee.
Rep. Edolphus Towns, D-N.Y., former chairman of the Oversight
Committee. The AP reports: “Towns issued the first subpoena to Bank of
America for Countrywide documents, and current Chairman Darrell Issa,
R-Calif., subpoenaed more documents. The committee said that in
responding to the Towns subpoena, Bank of America left out documents
related to Towns’ loan.”
Rep. Elton Gallegly, R-Calif.
Top staff members of the House Financial Services Committee.
A staff member of Rep. Ruben Hinojosa, D-Texas, a member of the
Financial Services Committee.
Former Rep. Tom Campbell, R-Calif.
Former Housing and Urban Development Secretary Alphonso Jackson
Former Housing and Urban Development Secretary Henry Cisneros
Former Health and Human Services Secretary Donna Shalala.
Former Fannie Mae heads James Johnson, Daniel Mudd and Franklin
Raines.
The report says that Rep. Pete Sessions, R-Texas, was one lawmaker who
told the Countrywide VIP unit—the bribery group, in essence— not to
give him a discount, and he did not receive one. Good for him. Then
again, he didn’t inform the public about what was going on.
More is coming out about this, to be sure, but some unpleasant truths
need to be pointed out:
The report shows that, to a significant extent, the current
economic crisis was the result of corruption at the highest levels of
both the private and the public sector, and the regulation of both was
inadequate. Do not accept the finger-pointing of grandstanding
members of Congress as they beat up on the banks and financial
institutions. Members of Congress failed as badly and as
unconscionably as the financial institutions did. They need to be
held accountable. We trusted Congress more than we trusted the likes
of Countrywide. Stupid, naive, gullible, unemployed us.
This was bi-partisan corruption, and the Democrats were in charge
of Congress through most of it. President Obama’s rhetoric about the
GOP “driving the economy into a ditch” is no longer acceptable
campaign hyperbole. In light of these facts, it approaches being a
cover-up; it is certainly a lie. Members of both parties and a lot of
Democratic appointees and allies were behind the wheel too, and worse,
accepted money to drive into that ditch. It’s time for bi-partisan
accountability.
A little respect is due Darrell Issa, the Chair of the House
Oversight Committee who pursued this investigation. Democrats are
unanimously accusing him of partisanship in investigating another
disturbing scandal, Fast and Furious. Issa may be partisan, but all
the evidence so far indicates that he isn’t corrupt. That places him
at the elite ranks of a body filled with a lot of crooks and
hypocrites in both parties. His efforts should be appreciated by the
public and media, not attacked.
And why hasn’t the Justice Department prosecuted Countrywide?
The Economic Meltdown: Accountability Check
The ethics story of week was the dropping of the missing shoe in the
“Friends of Angelo” scandal that helped drive Democratic Senator and
party leader Chris Dodd into retirement. (More here.) It fell like
this:
WASHINGTON (AP) — The former Countrywide Financial Corp., whose
subprime loans helped start the nation’s foreclosure crisis, made
hundreds of discount loans to buy influence with members of Congress,
congressional staff, top government officials and executives of
troubled mortgage giant Fannie Mae, according to a House report.
What the report indicates is that the bribery of regulators and
members of Congress to allow the sub-prime mortgage con-game to
continue was far worse and for more widespread than anyone realized.
Countrywide offered special loan deals to dozens of influential
government officials to stave off regulations that might have avoided
or greatly lessened the mortgage collapse that triggered the current
long-term economic crisis:
“Documents and testimony obtained by the committee show the VIP loan
program was a tool used by Countrywide to build goodwill with
lawmakers and other individuals positioned to benefit the company,”
the report said. “In the years that led up to the 2007 housing market
decline, Countrywide VIPs were positioned to affect dozens of pieces
of legislation that would have reformed Fannie” and its rival Freddie
Mac, the committee said.“
More:
“The Justice Department has not prosecuted any Countrywide official,
but the House committee’s report said documents and testimony show
that Mozilo and company lobbyists “may have skirted the federal
bribery statute by keeping conversations about discounts and other
forms of preferential treatment internal. Rather than making quid pro
quo arrangements with lawmakers and staff, Countrywide used the VIP
loan program to cast a wide net of influence….If Countrywide’s
lobbyists, and Mozilo himself, were more strictly prohibited from
arranging preferential treatment for members of Congress and
congressional staff, it is possible that efforts to reform (Fannie and
Freddie) would have been met with less resistance,” the report
said….Fannie Mae assigned as many as 70 lobbyists to the Financial
Services Committee while it considered legislation to overhaul the
company from 2000 to 2005. Four reform bills were introduced in the
House during the period, and none made it out of the committee.”
Among the individuals being so courted and who were secretly and
illegally assisted by Countrywide were:
Former Senate Banking Committee Chairman Christopher Dodd, D-Conn.
Senate Budget Committee Chairman Kent Conrad, D-N.D.
Mary Jane Collipriest, who was communications director for former
Sen. Robert Bennett, R-Utah, then a member of the Banking Committee.
Rep. Howard “Buck” McKeon, R-Calif., chairman of the House Armed
Services Committee.
Rep. Edolphus Towns, D-N.Y., former chairman of the Oversight
Committee. The AP reports: “Towns issued the first subpoena to Bank of
America for Countrywide documents, and current Chairman Darrell Issa,
R-Calif., subpoenaed more documents. The committee said that in
responding to the Towns subpoena, Bank of America left out documents
related to Towns’ loan.”
Rep. Elton Gallegly, R-Calif.
Top staff members of the House Financial Services Committee.
A staff member of Rep. Ruben Hinojosa, D-Texas, a member of the
Financial Services Committee.
Former Rep. Tom Campbell, R-Calif.
Former Housing and Urban Development Secretary Alphonso Jackson
Former Housing and Urban Development Secretary Henry Cisneros
Former Health and Human Services Secretary Donna Shalala.
Former Fannie Mae heads James Johnson, Daniel Mudd and Franklin
Raines.
The report says that Rep. Pete Sessions, R-Texas, was one lawmaker who
told the Countrywide VIP unit—the bribery group, in essence— not to
give him a discount, and he did not receive one. Good for him. Then
again, he didn’t inform the public about what was going on.
More is coming out about this, to be sure, but some unpleasant truths
need to be pointed out:
The report shows that, to a significant extent, the current
economic crisis was the result of corruption at the highest levels of
both the private and the public sector, and the regulation of both was
inadequate. Do not accept the finger-pointing of grandstanding
members of Congress as they beat up on the banks and financial
institutions. Members of Congress failed as badly and as
unconscionably as the financial institutions did. They need to be
held accountable. We trusted Congress more than we trusted the likes
of Countrywide. Stupid, naive, gullible, unemployed us.
This was bi-partisan corruption, and the Democrats were in charge
of Congress through most of it. President Obama’s rhetoric about the
GOP “driving the economy into a ditch” is no longer acceptable
campaign hyperbole. In light of these facts, it approaches being a
cover-up; it is certainly a lie. Members of both parties and a lot of
Democratic appointees and allies were behind the wheel too, and worse,
accepted money to drive into that ditch. It’s time for bi-partisan
accountability.
A little respect is due Darrell Issa, the Chair of the House
Oversight Committee who pursued this investigation. Democrats are
unanimously accusing him of partisanship in investigating another
disturbing scandal, Fast and Furious. Issa may be partisan, but all
the evidence so far indicates that he isn’t corrupt. That places him
at the elite ranks of a body filled with a lot of crooks and
hypocrites in both parties. His efforts should be appreciated by the
public and media, not attacked.
And why hasn’t the Justice Department prosecuted Countrywide?
Liberal Here
Jul 9, 2012, 1:41:16 PM7/9/12
to
On Jul 7, 7:22 pm, Michael Ejercito <mejer...@hotmail.com> wrote:
> http://ethicsalarms.com/2012/07/06/the-economic-meltdown-accountabili...
Countrywide spread its largess far and wide. Too far and too wide. I
have no problem the corrupt officeholders going to
prison....regardless of party.
Of course, I say public financing of all elections and primaries is
the necessary first step in cleaning up local, state, and federal
government. PAC advertising must be halted at least 3 months before
any election date....six months would be better.
Is "Michael Army" really your name? For those that don't know,
ejercito is Spanish for "army".
> http://ethicsalarms.com/2012/07/06/the-economic-meltdown-accountabili...
have no problem the corrupt officeholders going to
prison....regardless of party.
Of course, I say public financing of all elections and primaries is
the necessary first step in cleaning up local, state, and federal
government. PAC advertising must be halted at least 3 months before
any election date....six months would be better.
Is "Michael Army" really your name? For those that don't know,
ejercito is Spanish for "army".
Michael Ejercito
Jul 10, 2012, 8:46:25 PM7/10/12
to
Michael
0 new messages