Video: Who’s responsible for the Fannie and Freddie mess? Update: FBI launches investigation

posted at 7:47 pm on September 23, 2008 by Allahpundit

By special request of Ace. Nothing here you haven’t read and/or heard before, but Fox deserves a little publicity for being willing to challenge the narrative. Especially now that we’re about to be told it’s McCain’s campaign manager and his lobbyist pals, not the Democrats they lobbied who actually cast the votes, who are the real culprits in all this.

Update: The FBI: Doing the (after-the-fact) oversight job Congress wouldn’t.


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He who dies the most in debt wins the biggest.

MB4 on September 23, 2008 at 8:51 PM

LOL. But what if the unimaginable happens and you live?

genso on September 23, 2008 at 8:52 PM

Roger Waters on September 23, 2008 at 8:42 PM

15 minutes ago you never even knew McCain sponsored a bill that would have resolved this…nothing like learning on the run.
You obviously have read Will’s article, but one article doesn’t make you an expert…obviously.

right2bright on September 23, 2008 at 8:53 PM

Yeah, you know the same idiots that are losing their homes because they bought way beyond their means are just waiting with their hands out when the credit card companies are found to be “mean” for giving them so much credit.

HornetSting on September 23, 2008 at 8:53 PM

LOL. But what if the unimaginable happens and you live?

genso on September 23, 2008 at 8:52 PM

That’s where all the booze you bought on your credit card comes in.

MB4 on September 23, 2008 at 8:54 PM

Republicans are taking the blame even though it is not their fault. McCain blew this one. What do you expect when you have Obama and McCain both blaming it on Republicans? Of course, people will think it is the Republicans fault.

poljunkie on September 23, 2008 at 8:54 PM

Roger Waters on September 23, 2008 at 8:49 PM

I absolutely agree, that was so stupid. I think it’s a Senate thing. I think that’s why we don’t normally elect senators for anything other than senators. It drives me crazy, they act like some kind of secret club with a neat handshake and they will tell the truth about everybody (maybe) but each other.

Cindy Munford on September 23, 2008 at 8:55 PM

Yeah, I agree. Obama sucks and he also acts like a democrat. So, we got two people acting like democrats, Obama and McCain.

Roger Waters on September 23, 2008 at 8:17 PM

Presidential elections are easy. You pick one or the other, dumbfuck. Save your self-importance for DU; it works better there.

Jaibones on September 23, 2008 at 8:56 PM

Snap, that was good…as MB4 slinks back under his rock…

right2bright on September 23, 2008 at 8:40 PM

I think that you have gotten yourself confused again, stalker.

MB4 on September 23, 2008 at 8:44 PM

ummmm, I wasn’t posting to you, don’t flatter yourself…I was impressed how effortlessly that was done. No reason for you to respond, unless you…

right2bright on September 23, 2008 at 8:56 PM

This would be a lot easier if we blamed the mess on Ahmadinnerjacket and pushed him off the top of the U.N. building, them blamed the murder on Chavez.

Who’s wi’ me?

Bishop on September 23, 2008 at 8:57 PM

Republicans are taking the blame even though it is not their fault. McCain blew this one. What do you expect when you have Obama and McCain both blaming it on Republicans? Of course, people will think it is the Republicans fault.

poljunkie on September 23, 2008 at 8:54 PM

Great fleas have little fleas upon their backs to bite ‘em,
And little fleas have lesser fleas, and so ad infinitum.
And the great fleas themselves, in turn, have greater fleas to go on, while these again have greater still, and greater still, and so on.

Tav on September 23, 2008 at 8:58 PM

That’s where all the booze you bought on your credit card comes in.

MB4 on September 23, 2008 at 8:54 PM

Yeah, I hate that most of the liquor companies have diversified. Used to be a good investment in hard times.

genso on September 23, 2008 at 8:58 PM

I’ll bring the beer.

HornetSting on September 23, 2008 at 8:59 PM

You are preaching to the choir dude.

Roger Waters on September 23, 2008 at 8:50 PM

To clarify my point, in case you didn’t read the link, it was Federal Regulation based on Social Engineering beliefs that forced the banks to give loans to people who could not pay them back or face Federal Penalties all derived from DEMOCRATS. They were not bankers, nor did they have a working concept of the financial market, they were a bunch of government bureacrats with “good intentions” looking for votes. Clear and simple………… and now the seeds of the poisonous tree they planted has matured, and the people who caused this whold mess in the first place want us to forget that, and take a huge bite.

…………… that’s the secret the Democrats do want the American people to know.

Seven Percent Solution on September 23, 2008 at 8:59 PM

It’s almost as if he reads up on HotAir before putting together his show notes…
Mallard T. Drake on September 23, 2008 at 8:39 PM

I notice most of my fav AM righties read HA. I listen a lot to Rush and Laura, and often they cite from here. I think they come mainly looking for Ed and AP, then scan through the hoi polloi, such as thee and me, for extra ideas.

So, everyone, if yer looking for a place to make your ideas heard, this place is probably as good as it gets.
Sooo… When posting, let’s avoid feeding the trolls and try to make posts worth their reading. :)

petefrt on September 23, 2008 at 8:59 PM

I absolutely agree, that was so stupid. I think it’s a Senate thing. I think that’s why we don’t normally elect senators for anything other than senators. It drives me crazy, they act like some kind of secret club with a neat handshake and they will tell the truth about everybody (maybe) but each other.

Cindy Munford on September 23, 2008 at 8:55 PM

You got it–Congress as a whole is one giant private club whose treasury consists of our money. Whatever happened to the good ‘ol days when Senators clubbed other Senators over the head.

m064404 on September 23, 2008 at 9:00 PM

After almost two weeks without power, I am finally able to sign on at HotAir. And by the looks of things, I’ve got a lot of catching up to do. Soooooo…What’s this about a “bailout”?

Weight of Glory on September 23, 2008 at 9:00 PM

I’m amazed that Chris Dodd has the gall to sit there and demand answers. He knows what caused this – him. Fox also fell down on the job by not reporting that he was the number one recipient of bribes from Fannie Mae, with fellow presidential candidates Hillary Clinton and Barack Obama running close behind.

When is any news organization going to report the truth about what really happened? We know the facts out in the field and via blogs and Limbaugh, why does no one have the cojones to report them? Why is no reporter asking Dodd how he could take hundreds of thousands of dollars from an entity he was supposed to be overseeing? Why is no reporter asking him or Barney Frank how they could encourage Fannie Mae employees to work during campaigns to undermine republicans and democrats who dared to ask for controls on this corrupt organization? Bias in the news is one thing, but this is plain lying by omission.

Vashta.Nerada on September 23, 2008 at 9:01 PM

Welcome back to civilization, Glory.

HornetSting on September 23, 2008 at 9:01 PM

“Presidential elections are easy. You pick one or the other, dumbfuck. Save your self-importance for DU; it works better there.

Jaibones on September 23, 2008 at 8:56 PM”

What did you call me?? The safety of the internet. Dude, dont let your mouth write a check that your ass cant cash. HA HA HA!!

And whats the “DU”? dumbass.

Roger Waters on September 23, 2008 at 9:02 PM

You got it–Congress as a whole is one giant private club whose treasury consists of our money. Whatever happened to the good ‘ol days when Senators clubbed other Senators over the head.

m064404 on September 23, 2008 at 9:00 PM

Remember that old Eddie Murphy movie where he went to Congress. Everybody just laughed at that movie…hahahaha

It was just a movie…right?

genso on September 23, 2008 at 9:03 PM

Roger Waters on September 23, 2008 at 8:32 PM

Roger, if you’re a real Republican Im a leprechaun with a magic hat.

My favorite quote:

Since there was no reason to believe that the quasi-guarantee from the buyers of the loans would cease to buy these poor loans, to maximize shareholder wealth, company management continued to make poor quality loans.

Yep- no reason at all, except for all the reasons that came to pass the past year and bit them in the ass… massive leverage, plummeting asset value and the drying up of credit.

Again- you don’t know what you’re speaking of… these failed brokerages ARENT MAKING THE LOANS. They are borrowing massive amounts of money to BUY THE LOANS.

But keep bringing up McCain being a POW and you’re post will always have one factually accurate component to it.

Chuck Schick on September 23, 2008 at 9:03 PM

ummmm, I wasn’t posting to you, don’t flatter yourself…I was impressed how effortlessly that was done. No reason for you to respond, unless you…

right2bright on September 23, 2008 at 8:56 PM

Flatter? lol.

You were delusionally posting about me yet again, stalker. Don’t get yourself too confused now.

MB4 on September 23, 2008 at 9:03 PM

Are the Democrats even smart enough to be worried right now?

anniekc on September 23, 2008 at 9:04 PM

Hey, IGNORE HIM! Not worth the ink.

HornetSting on September 23, 2008 at 9:05 PM

Welcome back to civilization, Glory.

HornetSting on September 23, 2008 at 9:01 PM

Thanks.

Weight of Glory on September 23, 2008 at 9:05 PM

Weight of Glory on September 23, 2008 at 9:00 PM

Welcome back. East Texas or South?

carbon_footprint on September 23, 2008 at 9:06 PM

Damn it Chuck!! Yeah, I know how it works. The I banks are buying the asset backed securities. They are borrowing money (leverage) to invest in the asset backed securities which are collateralized by crappy subprime mortgages that have the quasi governmental guarantee.

WTF????

Isnt that clear to your ass? I know how it works dude.

Roger Waters on September 23, 2008 at 9:09 PM

Vashta:

Not sure why FOX has been hesitant to stay out of the name calling business, but they do have their stealth ways- On the 5:00 show with Martha MCCallum, she had Rush Limbaugh on by phone and basically she just gave him five minutes to rant. Rush can get out a lot of info in five minutes! It was a beautiful thing.

anniekc on September 23, 2008 at 9:10 PM

On the 5:00 show with Martha MCCallum, she had Rush Limbaugh on by phone and basically she just gave him five minutes to rant. Rush can get out a lot of info in five minutes! It was a beautiful thing.

anniekc on September 23, 2008 at 9:10 PM

That’s a good start, but remember the Edwards story. If this is not forced into the headlines in a timely way, we will not only get a bad bailout, everyone will not know the truth until after November….

Vashta.Nerada on September 23, 2008 at 9:14 PM

m064404 on September 23, 2008 at 9:00 PM

Please, now the world comes to an end it one of them says “Go forth and multiply” to each other. And I know you know what I mean.

Cindy Munford on September 23, 2008 at 9:14 PM

What pisses me off is the way politicians are always screaming for investigations into everything anybody on the other side of the aisle does, but I haven’t heard any calls for investigations, hearings, or commissions about this issue.

I want SOMEBODY’S HEAD, damn it!! EVERY American should be demanding a full and complete investigation and full and complete justice. This is the final straw!

If any politician has made, is making, or will make money on this, it should be taken away from them and they should go to jail!

How much did Chris Dodd get from Fannie Mae and Freddy Mac?

Star20 on September 23, 2008 at 9:15 PM

Weight of Glory on September 23, 2008 at 9:00 PM

Welcome home, I hope you are unscathed other than the lack of power.

Cindy Munford on September 23, 2008 at 9:16 PM

That’s all this congress has done since 2006! I agree, head on sticks!

Chris Dodd and Barney Frank, please come to the front office.

HornetSting on September 23, 2008 at 9:17 PM

I want SOMEBODY’S HEAD, damn it!!

Star20 on September 23, 2008 at 9:15 PM

Now gaze on our goddess of justice
With her shimmering, glimmering blade
As she kisses these traitors she sings them a last serenade

Tav on September 23, 2008 at 9:20 PM

Star20 on September 23, 2008 at 9:15 PM

Trust me, if the Dems weren’t two feet deep in this mess, they would be demanding investigations. Right now they are hoping that pompas ass mode will deflect anything like that.

Cindy Munford on September 23, 2008 at 9:21 PM

Damn it Chuck!! Yeah, I know how it works. The I banks are buying the asset backed securities. They are borrowing money (leverage) to invest in the asset backed securities which are collateralized by crappy subprime mortgages that have the quasi governmental guarantee.

WTF????

Isnt that clear to your ass? I know how it works dude.

Roger Waters on September 23, 2008 at 9:09 PM

Then greed or stupidity- take your pick. I guess they’re learning the hard way what the “quasi” means, aren’t they?

You’re acting like these investment bankers had guns to their heads. Like they have absolutely no choice but to follow their competition off the cliff.

And they arent “asset backed” if Fannie and Freddie are making 0% loans on undocumented applicants. That’s the problem. They knew it was happening, they just didn’t care enough until it was too late.

I dont see JP Morgan and BofA asking for bailouts- do you? Why do you think that is?

Chuck Schick on September 23, 2008 at 9:22 PM

Well, we can just agree the incentives and regulations and lack of oversite of the quasi government entities are the root of the problem….not second guess I bankers using legal means to attempt to maximize shareholder wealth.

Roger Waters on September 23, 2008 at 9:27 PM

The root of this problem is Freddie and Fannie taking 50% of the conventional mortgage market.

Thank God they never got their paws on Jumbos

Chuck Schick on September 23, 2008 at 9:30 PM

Well, we can just agree the incentives and regulations and lack of oversite of the quasi government entities are the root of the problem….not second guess I bankers using legal means to attempt to maximize shareholder wealth.

Roger Waters on September 23, 2008 at 9:27 PM

I have a problem with people looking for loopholes to game the system. Its like a bunch of hackers on the internet. Not criminal to try, but the results are rarely good.

genso on September 23, 2008 at 9:31 PM

I see on another thread that a PEW survey says that 57% of Americans support the bailout. I didn’t think there were that many Democrats IN congress!

Star20 on September 23, 2008 at 9:31 PM

Unfortunately, only the people who watch Fox will ever know this. I’m sure the indictments will come down well after the election.

PattyJ on September 23, 2008 at 9:33 PM

Republicans are taking the blame even though it is not their fault. McCain blew this one. What do you expect when you have Obama and McCain both blaming it on Republicans? Of course, people will think it is the Republicans fault.

McCain was a co-sponsor of the bill discussed in the Brit Hume/Jim Angle report, even though he wasn’t mentioned. McCain needs to run an ad and say that he had foreseen this problem and supported the bill, but it was filibustered by the Democrats. Put the blame where it belongs.

Steve Z on September 23, 2008 at 9:34 PM

Democrats cry and whine the loudest, even though they are at-fault.

They are “for the little man” right up to the point that they screw him.

HornetSting on September 23, 2008 at 9:36 PM

Balance indeed. Good video.

CP on September 23, 2008 at 9:36 PM

I’m very happy to see this side of the story appear in the MSM, however, they were a bit too soft on the Democrats, Jimmy Carter, and Bill Clinton. Not to mention the fact, that they never brought up who were the top recipients of Fannie and Freddie in campaign contributions.

iamse7en on September 23, 2008 at 9:42 PM

I doubt we will ever see the true culprits being brought to justice. Too many people have their hand in the cookie jar. It will be buried.

HornetSting on September 23, 2008 at 9:45 PM

The NY Times is overtly campaigning for Obama now. They are actively engaging anti-Obama ads and statements on a daily basis- first Harwood and now this:

http://www.nytimes.com/2008/09/24/us/politics/w24davis.html?_r=1&hp&oref=slogin

This is getting ridiculous. They never had any interest in debunking Palin rumors.

drjohn on September 23, 2008 at 9:48 PM

I hate Brit is going to retire. This was a good piece. Now if we can just get the ass to go with the piece maybe we will have some real satisfaction!

AZCoyote on September 23, 2008 at 8:10 PM

Yeah, me thinks so too! Where are they? Rush has been screaming for two days that if there were any GOP involved they would be howling for an investigation. Well now the FBI is involved and I am just saying that I will not believe until the day Dodd or Frank checks in to some butt love, white collar, Fed pen! Barney should really be singing “Muskrat Love”!

freeus on September 23, 2008 at 9:55 PM

Remember that the FBI, like the CIA, is oozing with Clinton people. I almost expect the findings to reaffirm that Oswald acted alone.

Patrick S on September 23, 2008 at 9:58 PM

Barney will never want to leave!

Do you really believe the powers will allow FBI to do their job?

HornetSting on September 23, 2008 at 9:58 PM

At this point I could care less who is actually responsible for getting into this mess

MikeZero on September 23, 2008 at 7:56 PM

I disagree to a point. It matters who caused it so that we don’t have the same scumbags in charge of fixing it and covering their tracks in the process.

Beyond that, yes, we are going to have to pay for it.

csdeven on September 23, 2008 at 10:28 PM

carbon_footprint on September 23, 2008 at 9:06 PM

Cindy Munford on September 23, 2008 at 9:16 PM

Sorry it took me so long to respond, power went out again. Looks like it’s going to be hit or miss for a while. NW Harris Co., by the way.

Weight of Glory on September 23, 2008 at 10:29 PM

csdeven on September 23, 2008 at 10:28 PM

Absolutely.

Weight of Glory on September 23, 2008 at 10:31 PM

Wow,

Great report. Fox News carrying the water for every other news outlet. Maybe investigative journalism isn’t dead.

hawkdriver on September 23, 2008 at 10:38 PM

Weight of Glory on September 23, 2008 at 10:31 PM

Welcome back. I hope all is well for you and your family.

csdeven on September 23, 2008 at 10:48 PM

Dodd deserves the heat for most of this b/s. This clown has been in bed with Fannie and Freddie just like Countrywide. He was one of the first to criticize the Bush administration when he and those liberal prick/ass friends could have prevented this. But NO!……with the young wife and the big ego, just had to run for president. Another one of these spineless politician who thinks he is God!

try again later on September 23, 2008 at 11:01 PM

Nothing will be done ’cause this is mostly a Dhimmicrat operation. It will be swept under the rug. Move along here people, nothing to see.

Mojave Mark on September 23, 2008 at 11:46 PM

NW Harris Co., by the way.

Weight of Glory on September 23, 2008 at 10:29 PM

Took me an hour to get from Downtown out to the Sam Houston on I-10 yesterday.

Welcome back, and hope the power comes back on for good soon.

TexasDan on September 23, 2008 at 11:47 PM

Go to http://www.c-spanarchives.org; do a video search on “gse” — it’s a gold mine.

They don’t seem to have records of floor debates, or I’d link to McCain’s speech accompanying his cosponsorship of S.190.

DrSteve on September 24, 2008 at 7:32 AM

Sorry it took me so long to respond, power went out again. Looks like it’s going to be hit or miss for a while. NW Harris Co., by the way.

Weight of Glory on September 23, 2008 at 10:29 PM

I feel your pain! I live in NW Harris County myself (Cy-Fair) and electricity came on pretty quickly after Ike; however, many of my coworkers are still without electricity. I am so proud of Texas for the great job they are doing. So glad we have Bill White (a democrat) rather than Ray Nagin! Even though Bill is a democrat, he really stepped up. Welcome Back!

Neocon Peg on September 24, 2008 at 8:22 AM

The Federal Government doesn’t want you to do internet gambling because you might make risky bets that won’t win on your credit card and screw up your finances. Does anyone see the irony?

LevStrauss on September 24, 2008 at 9:15 AM

If this report is true, it is very damning to the Democrats; but then, who cares? The responsibility will fall to us anyway.

tgillian on September 24, 2008 at 10:10 AM

Somebody needs to haul Paul Sarbanes out of mothballs and kick his ass too. He was the ranking Democrat on the Senate Banking Committee who kept the legislation bottled up and was a huge cheerleader for Fannie and Freddie. Chris Dodd did nothing about Fannie and Freddie when he took over but Sarbanes could have helped get a stronger regulator in 2004 after the accounting debacles in both comapnies. Instead he just had a hearung and let them do their mea culpas and go on their merry way.

The Financial Services Roundtable (the 20 largest financial services companies) has had GSE reform as a top legislative priority item since 2001. It’s an indicator of just how powerful Fannie and Freddie were that they were able to beat the combined lobbying efforts on 20 companies for 7 years.

It also needs to be hammered home to everyone that the regulatory bill that finally passed would not have gotten out of this Congress as a stand-alone bill, ever. The Administration was able to get it done only by tacking it on to a mortgage bailout bill that Barney Frank desperately wanted. If it had not passed, the government would not have had the authority to put Fannie and Freddie into conservatorship, they would have defaulted on their bonds held by banks and insurance companies all over the world, and there would be a worldwide financial crisis right now that would dwarf what we are already seeing.

rockmom on September 24, 2008 at 10:33 AM

“So, when did McCain tried to stop the Fmac and Fmay from buying all those bad loans again? I missed that.”
Roger Waters

Roger, now that your question has been answered chapter/verse, would you please STFU and go back to DailyKos. Thank you.

alwyr on September 24, 2008 at 11:58 AM

I am so sick of this media meme perpetuated by sites like this. The reality is that CRA simply did not cause Fannie/Freddie to get far too aggressive. It just didn’t happen. It is an absolute falsehood being turned into a reality by a naive and incompetent media that is being advanced by ideological sites like this one. These two giants became more aggressive because they were losing market share, not because the government wanted them to serve underdeveloped areas. I have been in mortgages for nearly seven years and i witnessed it all happen. No one in the business took any care to do these loans that served the underprivileged. They didn’t. fannie and freddie had special loans, Home Possible and My Community, for these areas. They are a tiny portion of their portfolio. The rest of the portfolio was always separate. It is the rest of the portfolio that is the problem not these two loan programs. I hope that someday the truth comes out, however this site does everyone a disservice by perpetuating this myth. Here is how I saw the crisis

develop.

mike volpe on September 24, 2008 at 12:35 PM

As thorough as this report was last night, Brit fired with both barrels today. I hope to see that segment here tomorrow.

As for Bush’s speech tonight, oh God, for once, please, let him call it like it was. None of this go along to get along crap we’ve been hearing for the last 8 years. Republicans have been warning of this crisis for years and Democrats have blocked every measure to prevent it. They MUST be exposed. It’s Bush responsiblity to fix this problem and the first step is to expose the socialist/communists who foisted this on us.

SoldiersMom on September 24, 2008 at 6:33 PM

Since Democrats haven’t openly blamed Republicans for this mess … it MUST be them … !!! ha ha ha

aniladesai on September 24, 2008 at 9:52 PM

The very last thing the Dems want is a really truthful investigation on this. It will make them look terrible. But I bet a few Republicans will get their noses bloody over it too.

Hawthorne on September 25, 2008 at 12:17 AM

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