McCain’s attempt to fix Fannie Mae, Freddie Mac in 2005; Update: Obama can’t get AIG right

posted at 11:45 am on September 17, 2008 by Ed Morrissey

With the financial sector in turmoil today, the media and the politicians have started throwing around blame with the same recklessness as lenders threw around credit to create the problem.  Politically, the pertinent question is this: Which candidate foresaw the credit crisis and tried to do something about it?  As it turns out, John McCain did — and partnered with three other Senate Republicans to reform the government’s involvement in lending three years ago, after an attempt by the Bush administration died in Congress two years earlier.  McCain spoke forcefully on May 25, 2006, on behalf of the Federal Housing Enterprise Regulatory Reform Act of 2005 (via Beltway Snark):

Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.

The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

I urge my colleagues to support swift action on this GSE reform legislation.

In this speech, McCain managed to predict the entire collapse that has forced the government to eat Fannie Mae and Freddie Mac, along with Bear Stearns and AIG.  He hammers the falsification of financial records to benefit executives, including Franklin Raines and Jim Johnson, both of whom have worked as advisers to Barack Obama this year.  McCain also noted the power of their lobbying efforts to forestall oversight over their business practices.  He finishes with the warning that proved all too prescient over the past few days and weeks.

What was this bill?  The act would have done the following:

(1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board.

Sets forth operating, administrative, and regulatory provisions of the Agency, including provisions respecting: (1) assessment authority; (2) authority to limit nonmission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting.

It never made it out of committee.  Chris Dodd, then the ranking member of the Banking Committee and now its chair, was in the middle of receiving preferential loan treatment from Countrywide Mortgage, one of the companies gaming the system in the credit crisis.  Meanwhile, Barack Obama took hundreds of thousands of dollars from the lobbyists McCain mentions in this speech, making him the #2 recipient of Fannie/Freddie money:

HEATHER NAUERT: Barack Obama attacking John McCain once again on the economy and the market turmoil today. Our John Gibson has new information on the Democratic presidential nominee and the mortgage mess for us now. What have you got John?

JOHN GIBSON: Alright Heather. Lehman Brothers’ collapse is traced back to Fannie Mae and Freddie Mac, the two big mortgage banks that got a federal bailout a few weeks ago. Freddie and Fannie used huge lobbying budgets and political contributions to keep regulators off their backs. A group called the center for responsive politics keeps track of which politicians get Fannie and Freddie political contributions. The top three U.S. Senators getting big Fannie and Freddie political bucks were democrats and number two is Senator Barack Obama.

Now, remember, he has only been in the Senate four years but still managed to grab the number two spot ahead of John Kerry, decades in the senate, and Chris Dodd who is chairman of the senate banking committee. Fannie and Freddie have been creations of the congressional democrats and the Clinton white house, designed to make mortgages available to more people, and as it turned out, some people who couldn’t afford them. Fannie and Freddie have also been places for big Washington democrats to go to work in the semi-private sector and pocket millions. The Clinton administration’s white house budget director Franklin Raines ran Fannie and collected 50 million dollars. Jamie Gurilli, Clinton Justice Apartment Official, worked for Fannie and took home 26 million dollars. Big Democrat Jim Johnson, recently on Obama’s VP search committee has hauled in millions from his Fannie Mae C.E.O. job.

Now remember, Obama’s ads and stump speeches attack McCain and republican policies for the current financial turmoil. It is demonstrably not Republican policy and worse, it appears the man attacking McCain, Senator Obama, was at the head of the line when the piggy’s lined up at the Fannie and Freddie trough for campaign bucks. Senator Barack Obama, number two on the Fannie/Freddie list of favored politicians after just four short years in the senate. Next time you see that ad, you might notice he fails to mention that part of the Fannie and Freddie problem. Heather.

NAUERT: Wow, that’s quite a report, begs the question — where is John McCain on this?

GIBSON: John McCain is a measly $20,000 after over 20 years so he really doesn’t even come close in the political contribution department.

Open Secrets has the list of Congressmen who have benefited from Fannie Mae/Freddie Mac largesse since 1989 (inclusive).  Remarkably, after only serving less than four of those 20 years, Barack Obama has vaulted to the #2 position on Capitol Hill.  Only Dodd outstripped him.  He took more than six times the amount that McCain received in a 20-year period.

The record shows that McCain saw the problem coming and tried to get Congress to act.  In 2005, both McCain and Obama served together in the Senate.  Did Obama attempt to pass this reform, sign on as a co-sponsor, or even speak out in its favor?  The record is tellingly blank.

Update: Below is a screen shot of Barack Obama’s statement on the American International Group (AIG) bailout:

“The fact that we have reached a point where the Federal Reserve felt it had to take this unprecedented step with the American Insurance Group is the final verdict on the failed economic philosophy of the last eight years.  While we do not know all the details of this arrangement, the Fed must ensure that the plan protects the families that count on insurance.  It should bolster our economy’s ability to create good-paying jobs and help working Americans pay their bills and save their money.  It must not bail out the shareholders or management of AIG.

“This crisis serves as a stark reminder of the failures of crony capitalism and an economic philosophy that sees any regulation at all as unwise and unnecessary.  It’s a philosophy that lets Washington lobbyists shred consumer protections and distort our economy so it works for the special interests instead of working people; a philosophy that says we should give more and more to those with the most and hope that prosperity trickles down to the rest.

“Instead, the pain has trickled up – from the struggles of Main Street all the way up to the crises on Wall Street.

“Despite his eleventh hour conversion to the language of reform, Senator McCain has subscribed to this philosophy for twenty-six years in Washington and the events of this week have rendered it a colossal failure.  It is time for a new economic strategy, guided by the principle that America prospers when all Americans prosper, where common-sense rules of the road ensure that competition is fair, open, and honest.  That is the strategy I will pursue as President, and I will bring the change we need to restore confidence in our financial markets and strength to our economy,” said Barack Obama.

As we have seen, McCain has been talking reform for three years, with no assist from Barack Obama.  And McCain at least knows the correct name of the company that got its bailout last night from the federal government.  Is Team Obama so incompetent that they couldn’t check the name before issuing the statement?


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More judgment to lead…

Claypigeon on September 17, 2008 at 11:49 AM

In this speech, McCain managed to predict the entire collapse that has forced the government to eat Fannie Mae and Freddie Mac, along with Bear Stearns and AIG. He hammers the falsification of financial records to benefit executives, including Franklin Raines and Jim Johnson, both of whom have worked as advisers to Barack Obama this year.

Wow. Make this a TV ad, McCain.

Have this answer any and every comment by Obama where he’s trying to make it seem that you have no idea what’s going on with the economy and that only Obama can fix it.

Did Obama attempt to pass this reform, sign on as a co-sponsor, or even speak out in its favor? The record is tellingly blank.

Not surprised at all.

wise_man on September 17, 2008 at 11:50 AM

Hang this one on the 9% Democrap-controlled congress! Dems have blocked every Republican attempt to avert this disaster. RNC? Please put out the ad campaign.

Fishoutofwater on September 17, 2008 at 11:50 AM

If we had a legit media, Obama would lose 5 points off this

jp on September 17, 2008 at 11:50 AM

Where is McCain’s commercials on this crap?

I mean, really. Come on man.

Get in front of this.

lorien1973 on September 17, 2008 at 11:51 AM

Looks like good ad material: Link McCain with promoting change/foresight/whatever. Link Obama with his FNMA $$$.

jdpaz on September 17, 2008 at 11:51 AM

We can all email this stuff to everyone on our lists. Emailmania.

bloggless on September 17, 2008 at 11:51 AM

Did Obama attempt to pass this reform, sign on as a co-sponsor, or even speak out in its favor?

No on the co-sponsoring.

Slublog on September 17, 2008 at 11:52 AM

Is Team Obama so incompetent that they couldn’t check the name before issuing the statement?

Ed, do you really want to ask this question?

The man can’t even say Wasilla…. and said Wasilly. Yeah talk about incompetenct.

upinak on September 17, 2008 at 11:53 AM

They need to get this message out… it’s irresponsible to let Pelosi and company do there crap…

ninjapirate on September 17, 2008 at 11:53 AM

Fantastic post. I worked on this legislation and I can say this is 100% accurate. S. 190 was dead on arrival in the Banking Committee. Chris Dodd would not even hold a hearing on it. Remember that John McCain was not even on that Committee and he had nothing to gain politically by signing on to this bill. It was not the White House’s bill either, it was drafted by Sens. Hagel and Shelby. So McCain was not carrying water for the Bush Admnistration either. Could it be that he was ACTUALLY DOING HIS JOB and supportng legislation that was actually in the public’s interest?

Here’s another tidbit I just posted on the Biden/lobbyist thread, from a September 7 WSJ article:

With the long-term future of Fannie Mae and Freddie Mac likely in the hands of the next president, both presidential candidates embraced Treasury’s short-term measures to rescue the companies as a necessary step but criticized the need for government intervention.

“We need to keep people in their homes, but we can’t allow this to turn into a bailout of Wall Street speculators,” Sen. John McCain said Saturday at a rally in Albuquerque, N.M. The Republican nominee has told voters anxious over job losses and foreclosures that he wouldn’t allow the companies to fail.

Sen. Barack Obama said in an interview aired Sunday that intervention was necessary to “prevent a long-term, much bigger crisis.”

Republicans have long pushed for a structural overhaul of Fannie and Freddie. By contrast, Democrats have warned against making major changes until the companies were stabilized. The companies have traditionally had stronger backing from Democrats, who support their mission of bolstering affordable housing and for years have fended off calls for greater oversight.

Democrats received 56% of some $1.6 million in contributions from the two companies in the current election cycle, according to the Center for Responsive Politics.

Sen. Obama has received $105,849 from donors tied to the companies since he ran for the senate four years ago, making him the third-largest recipient in Congress among the top 25 listed in a recent report by the Center for Responsive Politics, which examined contributions dating to 1989.

Sen. McCain wasn’t listed in the report, and proponents of overhaul say lobbyists have tried unsuccessfully to win him over.

“There were quite a few lobbyists retained by Fannie and Freddie who tried to influence Sen. McCain, but they never were able to get their hooks into him,” said Anne Canfield, who heads the Consumer Mortgage Coalition, a lending trade group that has advocated for overhaul of the government-sponsored enterprises.

Sen. McCain’s running mate, Alaska Gov. Sarah Palin, told voters at a Colorado Springs, Colo., rally that Sen. McCain would make the housing giants “smaller and smarter.” The Arizona senator has argued for nationalizing and downsizing the mortgage-finance companies before breaking up and selling off the companies.

The McCain campaign has tried to raise doubts about Sen. Obama’s ability to challenge his party on delivering changes.

“Certainly it is part of the difficulty the Obama campaign faces, because he never has taken a tough road against his party or his political backers…and that’s what this would require,” said Douglas Holtz-Eakin, an economic adviser to Sen. McCain.

rockmom on September 17, 2008 at 11:53 AM

There was this other guy running for President this year who has spent his entire career in congress talking about this issue… but I guess he was just a stupid crank!

Let me ask you this, where does the Fed derive the power to purchase a bank? From what law? From where in the Constitution? This is socialism plain and simple.

libertytexan on September 17, 2008 at 11:54 AM

You presume that we are dealing with sane, rational people who can be persuaded with fact.

I do not subscribe to that view.

rockhauler on September 17, 2008 at 11:54 AM

Another ball on the tee…THWACK!!!

LtE126 on September 17, 2008 at 11:54 AM

John McCain: If ever you needed to use a topic as a battering ram against O-Bambi, this is it. USE IT!!!

AubieJon on September 17, 2008 at 11:54 AM

Where is the McCain campaign on this? Where is the smack down? An ad on this should have been running in the must win states two days ago. They should juxtapose THE ONE MANCHILD COMMUNITY ORGANIZER going to Hollyweird at $28,000 per plate and the $2,500 get together with the evidence of McCain’s speech in 2006. I know the McCain camp can only move so fast, but I guess I am disturbed at the fact this is still so close. It is unnerving to see anywhere from 43-48% of each state would even consider THE MANCHILD as a possible candidate for POTUS! We have too many mind numbed robots out there!

freeus on September 17, 2008 at 11:55 AM

If this doesn’t end up in an advertisement with major farking airtime then Team McCain deserve to lose… I have no trust in them though…

ninjapirate on September 17, 2008 at 11:55 AM

Someone tell the McCain campaign.

lodge on September 17, 2008 at 11:55 AM

Bush tried to fix it in 2003 and at the time (reported in the NYT on 9/11/03) Congressman Barney Fwank said:

”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,” said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ”The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

So much for Fwank’s financial wisdom.

crosspatch on September 17, 2008 at 11:55 AM

McCain needs to drop this hammer on Obama FAST.

muggedbyreality on September 17, 2008 at 11:56 AM

This could be such an unbelievably great ad for McCain: “Right on the surge in Iraq. Right on Fannie Mae and Freddie Mac. Right on corruption in Washington and on Wall Street. Judgment to lead in a time of crisis.”

rockmom on September 17, 2008 at 11:56 AM

Don’t forget McCain has promised to work closely with the S.P.I.C.

[My apologies — I misunderstood the reference and deleted the comment incorrectly. — Ed]

Dave Rywall on September 17, 2008 at 11:56 AM

Dang.

slammed by the fickle finger of juxtaposition making it appear that I am endorsing the world view of a paulnut.

rockhauler on September 17, 2008 at 11:58 AM

Hmm, let me rewrite the quote in FwankSpeak …

”These two entities — Fannie Mae and Fweddie Mac — are not facing any kind of financial cwisis,” said Wepresentative Barney Fwank of Massachusetts, the wanking Democrat on the Financial Services Committee. ”The more people exaggerate these pwoblems, the more pwessure there is on these companies, the less we will see in terms of affordable housing.”

There, that’s better.

crosspatch on September 17, 2008 at 11:58 AM

This will be a great ad. But the MSM will avoid anything that goes against Obama.

jencab on September 17, 2008 at 11:58 AM

There was this other guy running for President this year who has spent his entire career in congress talking about this issue… but I guess he was just a stupid crank!

yep, answered your own question.

imagine what the media would’ve done to the paultard. talk about an obama landslide in the making had the GOP lost its marbles and voted paultard in primaries.

jp on September 17, 2008 at 11:58 AM

I saw Bill Richardson on Fox & Friends about this today. Brian Kilmeade pressed him on the fact McCain brought this up two years ago and tried to do something about then, but it was killed in committee. The only response from Richardson was “Where was the President?!” That’s it, when you can’t defend the actions of members of your own party it’s time to shift the blame to the President. Nice job, dingleberry.

Brass Pair on September 17, 2008 at 11:58 AM

Not only has Gov Palin stolen Obama’s mojo, there is a total lack of judgment of the campaign ‘he manages’.

tarpon on September 17, 2008 at 11:58 AM

Wow. Make this a TV ad, McCain.

Exactly! Make an ad something like: “I saw this coming three years ago and tried to reform Fannie Mae and Freddie Mac in the Senate, but was blocked by the Democrats who take donations from them. As President, I will sign into law the banking reforms that were needed three years ago.”

Obama tries to make McCain sound old and out-of-touch, but an ad on THIS subject will make McCain look like a visionary who sees future problems and tries to DO something about them (successfully, in the case of the troop surge).

Steve Z on September 17, 2008 at 11:59 AM

I wish Heather knew what “begs the question” meant.

Akzed on September 17, 2008 at 11:59 AM

freeus on September 17, 2008 at 11:55 AM

McCain did excatly that yesterday. The video is on the thread about Obama claiming credit for the stimulus bill. I’m sure McCain will be hammering this message the rest of the week.

I was disappointed that Nancy Pfotenhauer did not have this speech on hand when she was grilled by David Gregory last night. He asked her what specifically McCain had done in the Senate to warn about a possible financial meltdown or to prevent it (he was asking specifically about regulation of the big investment banks, which of course nobody was talking about until about 2 weeks ago). She obviously did not know about this floor speech on S. 190.

rockmom on September 17, 2008 at 11:59 AM

So if Sarah gets in for VP… is she going to start getting people like Franks, Pelosi, Biden etc whom keep steering America to finacial crisis out?

I sure as heck hope so.

upinak on September 17, 2008 at 11:59 AM

Don’t forget McCain has promised to work closely with the S.P.I.C.

Yes, let’s ignore his and the GOP’s foresight and focus on a gaffe.

Good one, Rywall.

Slublog on September 17, 2008 at 12:00 PM

Excellent post, Ed. Now can you please explain to me why McCain’s leads in the polls have dwindled down to 1 point or less?

Hunt035 on September 17, 2008 at 12:00 PM

There was this other guy running for President this year who has spent his entire career in congress talking about this issue… but I guess he was just a stupid crank!

You are correct sir. I also think Herr Doktor has spent a lot of his incredibly ineffective career talking about a lot of other shit besides this.

BuzzCrutcher on September 17, 2008 at 12:00 PM

Well, I have been impressed with McCain’s quick-response Ad team so far in this campaign – but this is a watershed moment where McCain could polish some big brass ones in the major media, with his quotes from 2005 on this.

Fishoutofwater on September 17, 2008 at 12:01 PM

If McCain does not starting attacking congress; he will lose.

Follow Ahnuld. Congress is the enemy.

lorien1973 on September 17, 2008 at 12:01 PM

Wow. Make this a TV ad, McCain.

wise_man on September 17, 2008 at 11:50 AM

Yes. Use some specifics and go after Obama in an ad. The “reform wall street” is vague and is going to wear off quickly. Hammer Obama over this.

BadgerHawk on September 17, 2008 at 12:02 PM

Awesome Awesome Awesome! Where are the commercials? This is a HUGE game changer. Shows Obama is beholden to this industry that is now collapsing because of Dems. Could this mean we could retake the congress as well? It’s just HUGE!

kerrhome on September 17, 2008 at 12:02 PM

On this issue, the Democrats (Dodd in the Senate and Frank in the House) are like John Edwards hiding in the Beverly Hilton Hotel restroom, barricading the door from the photographers, and we’ll just have to see if McCain has enough gonads to play the role of the National Enquirer here. Shoving this crisis down their throats till they choke on it has the added benefit of being deserved.

RBMN on September 17, 2008 at 12:02 PM

Commercial material.

“Who’s been looking out for you since 2005?”

Golden.

Dr.Cwac.Cwac on September 17, 2008 at 12:03 PM

GOD DAMN IT REPUBLICANS, FIGHT THE NARRATIVES…

We need more narrative oriented ads… we need need to defend bush for bringing this up in 2003 and mccain for bringing this up in 2005…

ninjapirate on September 17, 2008 at 12:04 PM

MCCain should be calling for a federal investigation on the Fannie Mae/Freddie Mac fallout. Since we taxpayers will ulitimately pay for this bailout, we have a right to know which of the “most ethical Congress ever assembled” has had sweetheart deals and blocked bills for greater scrutinty over the GSE’s.

Its time to impeach these low-lifes.

jbh45 on September 17, 2008 at 12:04 PM

[Comment deleted for derogatory ethnic reference. -- Ed]

Dave Rywall on September 17, 2008 at 11:56 AM
——–

No, no, no.

Ed I was referring to McCain saying S.P.I.C when he should have said S.I.P.C.

Not a racist flub, just a doesn’t-have-his-sh*t-together flub.

From McCain’s own mouth:

http://www.youtube.com/watch?v=D55e14031MI

Dave Rywall on September 17, 2008 at 12:04 PM

Is Team Obama so incompetent that they couldn’t check the name before issuing the statement?

Yes.

ballz2wallz on September 17, 2008 at 12:05 PM

McCain has to get on offence again. He’s been playing defence for two weeks now and it’s killing him. With the media in the tank for Bambi it’s impossible to get your message out when you’re simply reacting to a Bambi story. McCain needs to be out front creating the news.

This mess is a prime target for him. He’s going to have to start spending some money and get his story out before he’s buried by Bambi’s lies. Start attacking Bambi from several angles and get him off-message again. Hit him hard on this and start another front on Drilling. Go for ANWR and all energy sources as a way to get our economy going again.

rigdown on September 17, 2008 at 12:06 PM

The reform that we need is in Washington, not Wall Street.

Unfortunately McCain has been a member of the “club” so long, that he can’t bring himself to criticize other members of the club.

Democrats never suffer from that disease. (Unless the member needing criticizing is a Republican.)

MarkTheGreat on September 17, 2008 at 12:06 PM

Basically, McCain should turn Ed’s entire post into a speech, with video highlights. Also TV ads on the key points, and dump it on Obama in the debates.

EnglishMike on September 17, 2008 at 12:07 PM

This really gets my blood boiling. These damn Senators ought to have to pay for this mess with their own money before coming for ours. Lock ‘em up!

bopbottle on September 17, 2008 at 12:07 PM

Dave Rywall on September 17, 2008 at 12:04 PM

Say goodbye to your boy Drywall- he’s going down like a cheap intern.

FiveWays on September 17, 2008 at 12:07 PM

this should devastate Obama and any democrat running for congress this year….in a world without media bias

wildweasel on September 17, 2008 at 12:07 PM

I saw Bill Richardson on Fox & Friends about this today. Brian Kilmeade pressed him on the fact McCain brought this up two years ago and tried to do something about then, but it was killed in committee. The only response from Richardson was “Where was the President?!” That’s it, when you can’t defend the actions of members of your own party it’s time to shift the blame to the President. Nice job, dingleberry.

Brass Pair on September 17, 2008 at 11:58 AM

Man I am now getting pissed about this wanton lying by Democrats. This legislation STILL would not be law if the Bush Adminsutration had not refused to sign a mortgage bailout bill unless it was attached. Chris Dodd never held a single hearing on it. President Bush made numerous speeches and even a radio address calling on Congress to pass it. He had his Treasury and HUD secretaries pushing it every time they went up to Capitol Hill. It was Democrats in the Senate who held it up. Period. End of story.

If this legislation had not been passed in August, the government would not have had the legal authority to take over Fannie and Freddie, or to take the step before that which led to the takeover – hiring Morgan Stanley to go over their books and expose the fact that they had not been writing down the values of the subprime securities they held and thus were technically insolvent. If the legislation had been in place in 2005 when it was proposed, or even by the end of 2007, this entire financial market meltdown might well have been avoided. That is how serious this failure of the Democrats in Congress is.

rockmom on September 17, 2008 at 12:07 PM

Here’s a post that has the OpenSecrets.org data on the Top 25 Congressional recipients of political donations presented in graphical form. Note the side of the chart that identifies the “former or current presidential candidates.”

ironman on September 17, 2008 at 12:09 PM

“The Clinton administration’s white house budget director Franklin Raines ran Fannie and collected 50 million dollars. Jamie Gurilli, Clinton Justice Apartment Official, worked for Fannie and took home 26 million dollars. Big Democrat Jim Johnson, recently on Obama’s VP search committee has hauled in millions from his Fannie Mae C.E.O. job.”

Franklin, Jamie, and Jim should be wearing handcuffs right now, along with Chis Dodd.

Seven Percent Solution on September 17, 2008 at 12:09 PM

Are Obama and the dems guilty of hypocrisy and greed motivated legalized money laundering here? Absolutely!

Is John McCain clean as the driven snow?

No, this is more example of McCain chasing after his bad judgement to support Phil Gramm’s sponsored legislation in 99-2000 that opened Pandora’s Box on Wall Street to begin with. Now he’s America’s Champeen Wall Street Banker Giant Killer with a cast of over 100 corporate lobbyists to clean up the mess. The joke’s on you, America- from both sides of the aisle.

And now we have the Bush administration and the Fed using taxpayer dollars bailing these bastards out.

Just more of the same insider D.C. bullcrap. Promise of change means NO CHANGE.

Fletch54 on September 17, 2008 at 12:09 PM

This issue will win McCain the election when combined with the Streisand/Hollywood stuff and the debates.

HAMMER this til November:

1) Barack in only 3 years is the bitch of Fannie/Freddie.
2) Barack did NOTHING to prevent it.
3) McCain tried in 2005 to stop the madness and Barack did nothing.

HAMMER this every day. This is the silver bullet for the next two weeks.

Sapwolf on September 17, 2008 at 12:10 PM

someone, somewhere, PLEASE call someone and BEG them to make this into a hard hitting expose commerical….play it nationwide….PLEASE PLEASE PLEASE……

Paid Commericals….doing the job the Mainstream Media refuses to do!

SDarchitect on September 17, 2008 at 12:10 PM

Hey, hey! Hat tip to Ed from Rush!

hoosiermama on September 17, 2008 at 12:10 PM

McCain should announce a press conference on this immediately and attack with all the facts lined up.

NOW!

Sapwolf on September 17, 2008 at 12:11 PM

What Washington can demand, without screwing up what they don’t understand is, transparency. Transparency is always the best cure for all the ills of the financial markets. If investors knew what was really happening in all these investment banks, the institutions would’ve been forced to reform themselves years ago.

RBMN on September 17, 2008 at 12:12 PM

Hey, hey! Hat tip to Ed from Rush!

hoosiermama on September 17, 2008 at 12:10 PM

Heard that. Way to go Ed.

kerrhome on September 17, 2008 at 12:13 PM

Another example of the Solomon-like Judgement of O! …

RocketmanBob on September 17, 2008 at 12:13 PM

Mac will have this on-air soon, his team has proven pretty good at responding soon after fit hits the shan (ht: MM).

Expect this to be front and center during the debates; just because you haven’t seen fifty ads yet doesn’t mean Mac and his people aren’t putting things together to bury Obama.

Bishop on September 17, 2008 at 12:13 PM

*Sigh.* Here we go again wth the Gramm-Leach-Bliley crap.

Go back and look up the vote on that bill, please. And look who the President was who signed it. And please remember that Jim Leach is now supporting Barack Obama.

GLB had nothing to to with the explosive growth of Fannie and Freddie and nothing to do with the explosive growth of subprime mortgage lending. And if GLB were not the law today, Merrill Lynch and Bear Stearns would have gone out of business completely because the big banks would not have been able to buy them.

rockmom on September 17, 2008 at 12:14 PM

Jamie Gurilli, Clinton Justice Apartment Official

(From the FNC transcript of John Gibson’s comments)

Yes…Clinton did need an “Apartment Official” didn’t he?

HawaiiLwyr on September 17, 2008 at 12:16 PM

Say goodbye to your boy Drywall- he’s going down like a cheap intern.

FiveWays on September 17, 2008 at 12:07 PM

Most interns ARE free…. those who pay them are nuts.

upinak on September 17, 2008 at 12:16 PM

Expect this to be front and center during the debates; just because you haven’t seen fifty ads yet doesn’t mean Mac and his people aren’t putting things together to bury Obama.

Bishop on September 17, 2008 at 12:13 PM

I agree completely. I was wondering if the best place for this was at the debates! Throw it right in Obama’s face in front of the nation. Might as well get it started now before Obama has anything to refute it with (I’m sure he’ll make up something). Biden is pretty honorable. Would Biden lie to attack his friend John?

kerrhome on September 17, 2008 at 12:16 PM

rockmom on September 17, 2008 at 12:07 PM

I’m sorry mom. I really didn’t mean to get you pissed. I promise not to do it again. I mean it this time!

Brass Pair on September 17, 2008 at 12:19 PM

The name is Jamie Gorelick. Never forget this name. This person has done so much damage to our country that she should be hung for treason.

carbon_footprint on September 17, 2008 at 12:21 PM

rockmom on September 17, 2008 at 11:53 AM

You need to do a guest post that lays all this out.

TheBigOldDog on September 17, 2008 at 12:25 PM

If Obama thinks he can make these arguments during the first debate, McCain will be able to hammer him with the facts on who tried to reform things to prevent it and who was taking money from the crooks.

Obama has 9 days to make up a better answer. Tune in for O’s epic fail on 9/26.

Right_of_Attila on September 17, 2008 at 12:25 PM

Don’t forget Obama has at least two top-tier bundlers from Lehman, including the head of their mortgage division, Ted Janulis.

DrSteve on September 17, 2008 at 12:26 PM

McCain should hold Obama down and tattoo Jim Johnson’s name across the face of Barry’s campaign.

Might want to add a tear as well.

moxie_neanderthal on September 17, 2008 at 12:30 PM

The name is Jamie Gorelick. Never forget this name. This person has done so much damage to our country that she should be hung for treason.

carbon_footprint on September 17, 2008 at 12:21 PM

Spot on!

It’s not often that one person plays key roles in two — count ‘em, two — trillion-dollar disasters. Welcome, my friends, to the world of well-connected Democrat Jamie Gorelick.

Gorelick should be made famous. Here’s a start.

moxie_neanderthal on September 17, 2008 at 12:34 PM

Expect this to be front and center during the debates; just because you haven’t seen fifty ads yet doesn’t mean Mac and his people aren’t putting things together to bury Obama.
Bishop on September 17, 2008 at 12:13 PM

Correct. And some people thought that McCain picked Palin for his VP out of a list of random people – just because McCain wanted to keep this a secret, and wanted to control the process, and not let the press attempt to control this. And of course the press ran with the ‘McCain decided at the last moment’ lie as well.

At first, I was wondering why to took a blogger to figure this out – but as I think of it, when Obama knows what’s coming his way, he can prepare for his scripted response. If McCain had hit Obama with this in the first debate and blind-sided him, then it would be more effective if it seemed to come out of nowhere.

I could be wrong, just speculation at this point. (Then again, some people here think that the reason that McCain went on the view was because these people were ‘his base,’ and ‘were friends with him.’)

wise_man on September 17, 2008 at 12:35 PM

Though she had no training or experience in finance, Gorelick was appointed the Vice Chairman of Fannie Mae and served in the role from 1997 to 2003. During that six-year period, she earned over $26 million.

During Gorelick’s tenure, FNMA suffered a $10 billion accounting scandal, an ominous harbinger of the firm’s looming troubles. One of the falsified transactions helped FNMA hit earnings targets for 1998, which triggered bonuses for top executives including nearly $800,000 to Gorelick.

moxie_neanderthal on September 17, 2008 at 12:36 PM

Most interns ARE free…. those who pay them are nuts.

upinak on September 17, 2008 at 12:16 PM

I didn’t say free- I said cheap.

…and I wasn’t talking about wages…..

FiveWays on September 17, 2008 at 12:39 PM

That intern is fired

tdavisjr on September 17, 2008 at 12:40 PM

“The name is Jamie Gorelick. Never forget this name”–oh yeah, I bet she had lots of friends.That will be how she pleads,..”insanity”..(she’s gonna have to come up with something)

christene on September 17, 2008 at 12:42 PM

No, no, no.

Ed I was referring to McCain saying S.P.I.C when he should have said S.I.P.C.

Not a racist flub, just a doesn’t-have-his-sh*t-together flub.

Dave Rywall on September 17, 2008 at 12:04 PM

But Obama and his entire team put it up on the Internet, whereas McCain’s was a mouth flub. Of course, that probably has something to do with McCain not knowing enough about the Internet to be able to write out the mistake, but I could be wrong.

Then again, taking all of the Captain’s points and putting them into perspective, we have a guy (McCain) who tried mightily to prevent the Macs from getting into the trouble they got into, and another guy (Obama) who mightily aided them in getting into the trouble they got into.

There’s a reason Obama got $120,000 and McCain only $20,000, and that reason will require all us taxpayers to foot the bill.

unclesmrgol on September 17, 2008 at 12:42 PM

This is HUGE…

Could I ask my fellow Air Heads out here to email Fox news and point out the FACTS on this?

I just sent emails to all the fox shows… if enough of us do so we may get their attention.

As of now, they are allowing the Dems to spin this…

Romeo13 on September 17, 2008 at 12:43 PM

Though I respect McCain for who he is, there have been a lot of things he’s been behind I am vehemently against (i.e. immigration). However, Mr McCain, when you picked Sarah Palin, you officially got my vote. Now today, even without Palin on your ticket, you would have had me taking another look at you.
This is the stuff you need to get out on your ads!
BTW-why do I see NO ads on my local (Bismarck,ND) CBS & NBC stations? I haven’t seen ONE McCain ad yet! It really burns me up watching all the stupid Oblammo ads with no other viewpoint presented.

Badger40 on September 17, 2008 at 12:44 PM

Obama sold out the people in his own district to his Slumlord friend of 17 years for campaign cash, does ANYONE find this out of character for him to be a Sell out to a special interest for more campaign cash?

Wake up people.. the guy is corrupt.

Chakra Hammer on September 17, 2008 at 12:44 PM

From the FNC transcript:

The Clinton administration’s white house budget director Franklin Raines ran Fannie and collected 50 million dollars. Jamie Gurilli [sic], Clinton Justice Apartment Official, worked for Fannie and took home 26 million dollars. Big Democrat Jim Johnson, recently on Obama’s VP search committee has hauled in millions from his Fannie Mae C.E.O. job.

That would be Jamie Gorelick, who built the wall of separation between the FBI and the CIA which opened the door to the 9/11 attacks, and in one of the greatest farces in American history, served on the 9/11 Commission.

I hope the DOJ is pursuing fraud charges against the Gorelick/Raines/Johnson triumvirate of corruption.

Buy Danish on September 17, 2008 at 12:47 PM

Please run with this everywhere as often as possible. By all means get out an ad showing McCain’s attempts to rectify this problem and contrasting it with Obama feeding at the trough.

skatz51 on September 17, 2008 at 12:48 PM

Like that ad:
“Right on the surge in Iraq. Right on Fannie Mae and Freddie Mac. Right on corruption in Washington and on Wall Street. Judgment to lead in a time of crisis,” but I would also add Right On Energy Independence and Right on National Security.
I’m John McCain and I approved of this thrashing of the Obamanation!

eaglewingz08 on September 17, 2008 at 12:48 PM

The name is Jamie Gorelick. Never forget this name. This person has done so much damage to our country that she should be hung for treason.

carbon_footprint on September 17, 2008 at 12:21 PM

Would offering to donate a rope to the Justice Dept. for this purpose after she has been properly tried and convicted of her crimes cross the line?

Brass Pair on September 17, 2008 at 12:52 PM

OK, so there are massive investigations already underway right?

I want investigations as big as those from the 9/11 commission. I want to see Gorelick on the other side of the questioning. I want JUSTICE. This is an absolute travesty.
Dick Morris said his book “Outrage” goes through all this- that Freddie and Fannie have long been a cash-cow retirement home for washed-up Democrat politicians.

INVESTIGATE NOW! Then prosecute ruthlessly.

NTWR on September 17, 2008 at 12:56 PM

Update: Obama can’t get AIG right

too busy passing the joint…

Brass Pair on September 17, 2008 at 12:59 PM

At least with McCain we have a record of him trying to accomplish something.

This is directed to Obama Tank Dwellers,

What has His Holiness done for affordable housing when he was a community organizer, state senator or Constitutional law professor?

Obama: I Know Affordable Housing

For more than five weeks during the brutal winter of 1997, tenants shivered without heat in a government-subsidized apartment building on Chicago’s South Side.

It was just four years after the landlords — Antoin “Tony” Rezko and his partner Daniel Mahru — had rehabbed the 31-unit building in Englewood with a loan from Chicago taxpayers. Rezko and Mahru couldn’t find money to get the heat back on.

But their company, Rezmar Corp., did come up with $1,000 to give to the political campaign fund of Barack Obama, the newly elected state senator whose district included the unheated building.

Dr.Cwac.Cwac on September 17, 2008 at 12:59 PM

Buy Danish on September 17, 2008 at 12:47 PM

Don’t forget another Clintonoid supporter that was on the board…….Former FBI Director Louis J. Freeh

Dr.Cwac.Cwac on September 17, 2008 at 1:01 PM

Please run with this everywhere as often as possible. By all means get out an ad showing McCain’s attempts to rectify this problem and contrasting it with Obama feeding at the trough.

skatz51 on September 17, 2008 at 12:48 PM

Are you calling Obama a pig! For shame.

I agree whole heartily! I think it should be more than an ad though. This should be top talk everywhere… All the surrogates. Make Begala and so forth defend this. Oh and Chris Matthews… Olbermann… oh well noone really listens to them anyway.

petunia on September 17, 2008 at 1:02 PM

Dodd and Obama are number 1 & 2 for receiving political contributions from Fannie and Freddie….

albill on September 17, 2008 at 1:02 PM

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