Fannie, Freddie spent $200M to buy influence
OK, let me get this straight… Freddie and Fannie make political donation to earn favors from the politicians. Freddie and Fannie then make bad loans, bad investments and overextend themselves. The politicians save Fannie and Freddie and the US taxpayers pay for their mistakes and help bail them out. That Sucks!
Perhaps Americans need to donate more money to the politicians so if they have trouble paying their mortgage or are on the verge of bankrupty, the goverment can bail us out too! Now that’s democracy for sale! Our dollar has lost 50% of its value the last 5 years, forclosures are at an all time high, banks are having no mercy on our souls but they expect us to bail them out??
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Fannie, Freddie spent $200M to buy influence
Lisa LererWed Jul 16
If you want to know how Fannie Mae and Freddie Mac have survived scandal and crisis, consider this: Over the past decade, they have spent nearly $200 million on lobbying and campaign contributions.
But the political tentacles of the mortgage giants extend far beyond their checkbooks.
The two government-chartered companies run a highly sophisticated lobbying operation, with deep-pocketed lobbyists in Washington and scores of local Fannie- and Freddie-sponsored homeowner groups ready to pressure lawmakers back home.
They’ve stacked their payrolls with top Washington power brokers of all political stripes, including Republican John McCain’s presidential campaign manager, Rick Davis; Democrat Barack Obama’s original vice presidential vetter, Jim Johnson; and scores of others now working for the two rivals for the White House.
Fannie and Freddie’s aggressive political maneuvering has helped stave off increased regulation and preserve special benefits such as exemption from state and local income taxes and the ability to borrow at low rates.
When their stock prices took a dive last week, their government allies extended another helping hand with a plan for the Treasury Department, the Federal Reserve and, possibly, Congress to shore up the companies.
The housing crisis is sure to linger into the next administration, when the mortgage companies will inevitably be well-represented — no matter who’s in the White House.
Fannie and Freddie’s political contacts exist deep in the two presidential campaigns. ….read rest if story…
