Video: McMahon ties Blumenthal to Countrywide collapse

posted at 3:20 pm on October 23, 2010 by Ed Morrissey

Dick Blumenthal has tried to cast himself as a white knight in the Countrywide Mortgage scandal that forced Chris Dodd into retirement after the exposure of his sweetheart mortgage deals under the “Friends of Angelo” program at Countrywide. Blumenthal points to his $8.6 billion settlement with Bank of America over the mortgage giant’s remaining loans, one that supposedly “won’t cost taxpayers a dime,” as an example of his beneficial work for Connecticut voters and his ability to get tough with fraudsters. Linda McMahon takes aim at this argument with her new ad released yesterday titled “Taking Care,” which alleges that Blumenthal took more care of himself than the citizen of the Nutmeg State:

The McMahon campaign found Blumenthal’s connection to Countrywide by “sifting through the Securities and Exchange Commission’s files,” according to National Review, finding a $3 million Blumenthal investment in the Blue Ridge Limited Partnership.  Blue Ridge took a significant interest in PennyMac, a fund formed by former Countrywide executives to purchase and restructure some distressed Countrywide loans to turn them towards profitability.  It’s not clear whether Blumenthal was aware of Blue Ridge’s stake in PennyMac — Blue Ridge says it’s “proprietary” and doesn’t even discuss them with clients, but the McMahon campaign found it through public sources easily enough.

Did the settlement actually do what Blumenthal claims?  The cost of a good portion of the settlement wound up being paid by taxpayers after all.  The campaign points to an article in The Nation that reports that Bank of America is allowed to use the Obama administration’s HAMP program incentives to fund the restructuring of the Countrywide loans it assumed — and that could amount to more than half of Blumenthal’s settlement:

Only about 12 percent of the first-lien loans initiated by Countrywide remain on BofA’s books. Investors in mortgage-backed securities, including major pension funds like CalPERS (the California Public Employees’ Retirement System), own the other 88 percent, and it is these investors who will bear most of the expense of complying with the settlement, in the form of permanently reduced principal and interest payments on their bond holdings. Believe it or not, this aspect of the deal was overlooked by the settlement. Richard Blumenthal, attorney general of Connecticut, one of the original parties to the suit, seems to have missed it entirely, claiming in his October 2008 announcement, “This settlement will cost BofA as much as $8.6 billion, but no cost, not a dime, to taxpayers.”

In fact, as it turned out later, much of the settlement’s cost would be covered by taxpayers. Bank of America is allowed to use federal incentives under President Obama’s $75 billion Home Affordable Modification Program (HAMP) toward the loan modifications it is required to make as the mortgage servicer for the Countrywide portfolio. In total, of its entire Countrywide financial servicing portfolio—which goes beyond the loans covered by the settlement—BofA is eligible for as much as $4.5 billion in federal incentives for completed modifications, according to an analysis by the Center for Public Integrity as reported in Mother Jones. That’s a hefty government rebate.

So Blumenthal got it wrong to the tune of $4.5 billion.  Given that he already has some serious credibility issues in this campaign, it’s hardly helps to have Linda McMahon pinning this one on him in the final fortnight before the midterm election.


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Pin the corruption on the donkey.

NoDonkey on October 23, 2010 at 3:27 PM

Wow!..I can’t believe McMahon would do this to a Vietnam vet/..:)

Dire Straits on October 23, 2010 at 3:29 PM

Blumenthal: Mommy! Mommy! I mean Uncle, Uncle..Tap Out Dick, Tap Out LMAO.

Dr Evil on October 23, 2010 at 3:30 PM

I see we’re getting closer to Nov 2. The big guns coming out.

darwin on October 23, 2010 at 3:33 PM

Was that a Pile Driver or a Body Slam?

hawkman on October 23, 2010 at 3:35 PM

Given that he already has some serious credibility issues in this campaign, it’s hardly helps to have Linda McMahon pinning this one on him in the final fortnight before the midterm election.

Huh?

ladyingray on October 23, 2010 at 3:38 PM

Was that a Pile Driver or a Body Slam?

hawkman on October 23, 2010 at 3:35 PM

That was off the top turnbuckle with a folding chair over the head.

darwin-t on October 23, 2010 at 3:44 PM

A good, hard-hitting ad. Keep it up, Linda, every day till November 2.

Extrafishy on October 23, 2010 at 3:47 PM

darwin-t on October 23, 2010 at 3:44 PM

Foreign object! The ref didn’t see it!

NoDonkey on October 23, 2010 at 3:51 PM

finding a $3 million Blumenthal investment in the Blue Ridge Limited Partnership.

Wow. “Public service” really pays well, doesn’t it?

No wonder these crooks fight so hard to keep these jobs.

AZCoyote on October 23, 2010 at 3:51 PM

The ladies are the ones with steely ones in this cycle.

Schadenfreude on October 23, 2010 at 3:52 PM

So Blumenthal got it wrong to the tune of $4.5 billion.

That’s gonna leave a mark ;)

Dr Evil on October 23, 2010 at 3:53 PM

I’m sure that Hotair readers have seen this before, but it’s a classic!

http://www.youtube.com/watch?v=vtLE4Z1kMdA

Bosox04 on October 23, 2010 at 3:57 PM

…but the McMahon campaign found it through public sources easily enough.

Wasn’t this all uncovered previously in the major papers and news organizations?

oh wait!

rightside on October 23, 2010 at 4:04 PM

hawkman on October 23, 2010 at 3:35 PM

Straight off the top rope and into a figure 4

Wind Rider on October 23, 2010 at 4:06 PM

perfect timing – the debates are over

iam7545 on October 23, 2010 at 4:10 PM

This relates exactly to his Nam lies.

Both are resume padding.

He wanted to claim credit for more than he did.
In this case, “taxpayers pay nothing” vs. “taxpayers are on the hook for $4.5 billion”. It was politically uncomfortable to say “I cut a deal that makes taxpayers liable for only half of the Countrywide bailout.” So he said, “they don’t pay a dime.” Who would care? who would know?

What other lies has Blumenthal been spinning?

G. Charles on October 23, 2010 at 4:13 PM

Was that a Pile Driver or a Body Slam?

hawkman on October 23, 2010 at 3:35 PM

That was off the top turnbuckle with a folding chair over the head.

I think he’s been choked out in the classic sleeper hold. Difference is he’s not coming back Hulk Hogan style.

mizflame98 on October 23, 2010 at 4:15 PM

She still won’t win.

BacaDog on October 23, 2010 at 4:15 PM

This is great! I also think McMahon should go after Blumie for releasing the names and addresses of AIG employees in CT who received those bonuses (that Dodd put in the bailout – and were KNOWN and APPROVED) so the union thugs that were bussed in by Dems could go to their HOMES with torches and pitchforks! Regardless of what you think about the AIG bailout and subsequent bonuses, these AIG employees committed NO CRIME and were TARGETED by Obama, the Dems and Blumenthal.

Remember this?

I still think that Linda McMahon is going to win! For her victory on 11/2, I’m making t-shirts to wear out in front of WWE Headquarters that say, “Yes, WWE Can Elect Linda McMahon!!!”

Logic on October 23, 2010 at 4:17 PM

This is huge, but it is so so late! If they had this info and didn’t use it until now that was not smart.

But if they just got it verified. Well it is what it is. They should hammer this home. Is everyone clear about what this is all about? I don’t know if people understand well enough for this to sink in before they vote.

Combine this with the military lies and he is one of the most corrupt legislators we have.

petunia on October 23, 2010 at 4:29 PM

She still won’t win.

BacaDog on October 23, 2010 at 4:15 PM

Yeah, she can win. Polls in blue states are deceptive because many people won’t admit they’re voting for a Republican. In a red state? yeah, no problem

darwin on October 23, 2010 at 4:29 PM

Ouch! She didn’t pull that punch at all!

I sure hope she wins. She deserves it–and he doesn’t–more than a number of other candidates who will emerge victorious on 11/2.

I don’t really believe in moral victories, but sometimes victories must be won incrementally. If she shreds his credibility like he deserves it hurts his ability to govern and hurts the strength of the (D) party in general. It would still be a 6-year loss for (R) but it could solidify the convictions of some right-leaning indies that will be disgusted to see Dick Blumenthal become a Senator.

We fully anticipate the need to finish the power shift in succeeding elections, don’t we?

rwenger43 on October 23, 2010 at 4:32 PM

Heh heh!

Herb on October 23, 2010 at 4:40 PM

Jim Ross:Bah God, Bah God, shes breaking him in half King!
Jerry Lawler: This is terrible, J.R., Dick doesn’t deserve this!
JIm Ross: Now she got a steel chair- somebody stop the damn match!

jjshaka on October 23, 2010 at 4:58 PM

Now that’s a clothesline!

Mojave Mark on October 23, 2010 at 5:03 PM

Here’s an ad for ya:

“Blumenthal has been caught lying yet again. He keeps portraying himself as a hero, but he is not.”
Instead of lying about his service in Nam (as he did at least six times), now he is lying about his service to Connecticut, saying that his wonderful (heroic) efforts kept taxpayers from paying a dime for his arranged bailout of Countrywide. Two facts have gotten in the way of that whopper: 1) Taxpayers will pay up to 4.5 billion for Blumenthall’s bailout deal for Countrywide. 2) Blumenthall all the while was invested in Countrywide via a subsidiary. So Dick B. is reaping profits while taxpayers are on the hook for $4.5 billion.

And the kicker is, being Dick Blumenthal, it wasn’t enough to work a slick deal for his own benefit at taxpayer expense. No, he wants us to think he’s a hero.

Let him know if you think he’s a hero when you vote on November 2.

G. Charles on October 23, 2010 at 5:06 PM

petunia on October 23, 2010 at 4:29 PM

They timed it this way on purpose. 9 days out and he doesn’t have enough turn around time to reply and convince the voters it’s not true…not that he could prove it’s not true (I wonder how many folks in CT have been foreclosed on?). She slapped him with his claim of service in country in Vietnam, and How do you create a job Dick, he’s clueless…..this is a PUNCH she isn’t slapping him around anymore.

Dr Evil on October 23, 2010 at 5:12 PM

Each new poll show Blumenthal pulling further away; however, I think this will be the upset of the night.

SouthernGent on October 23, 2010 at 5:37 PM

Knowing what they know, and seeing, and hearing what they’ve seen and heard from Blumenthal, and the fact that he’s running neck, and neck for this entire time, with McMahon tells me….this won’t change the game at all. These voter seem hell bent on self destruction, and self loathing. Why else would he even be in the game at this point?

I hope I’m wrong, but with all the corruption we’ve seen, and heard, with all that Dems have done to this country on their path to destroying it….I can’t believe any of these races are as tight as they are.

We hear Dems pulling away and going towards Republicans. We hear about independents going that way too..yet in the polls, Dems seem to be doing something people like. I just don’t get it!!!

capejasmine on October 23, 2010 at 6:07 PM

The McMahon campaign found Blumenthal’s connection to Countrywide by “sifting sniffing through the Securities and Exchange Commission’s files,”

I think it more accurately describes Blumenthal this way.

Slowburn on October 23, 2010 at 6:23 PM

I’m so sick of all of this political corruption. I guess, more to the point, I’m sick of Democrats getting away with it and continuing to serve in office and protected by the bureaucracy.

whbates on October 23, 2010 at 6:33 PM

God please let the dolts in this state understand what the lady is telling them:


Blumenthal’s a crook too in the same scandal that’s driven Dodd into retirement.

If you don’t want a crook for a Senator, vote for McMahon.

Should be an easy point to make stick, but here in Connecticut…I always have to wonder.

SuperCool on October 23, 2010 at 11:02 PM

but but but…. she made her money in wrestling!

/dumb Dem rube

billhedrick on October 24, 2010 at 4:21 PM