Finally, after all these years the Securities and Exchange Commission is taking action against a handful of ex- CEO’s who have fostered a culture of corruption at the G.S.E.’s known as Fannie Mae and Freddie Mac. Unfortunately, there are some very conspicuous names amiss; most notably, the architect of this disaster, James Johnson and his crown prince, Franklin Raines.There should also be investigations on all of the Democratic operatives who have profited off of this culture of corruption, particularly those who served on the board of directors: Jamie Gorelick and Rahm Emanuel come to mind. And let’s not forget the leeches like Valerie Jarrett, who profited handsomely from insider information.
But instead, it’s the minnows who are being sued:
Daniel Mudd, the former chief executive officer of Fannie Mae, and Richard Syron, ex-CEO of Freddie Mac, were sued by the U.S. Securities and Exchange Commission for understating by hundreds of billions of dollars the subprime loans held by the firms.
The lawsuits filed today in Manhattan federal court were followed by an SEC statement that it had entered into “non-prosecution agreements” with each company. Fannie Mae, the government-sponsored enterprise which issues almost half of all mortgage-backed securities, and Freddie Mac, the McLean, Virginia-based mortgage-finance company, had “agreed to accept responsibility” for their conduct, the SEC said.
The agency said in the lawsuits that Syron, Mudd and other executives understated exposure to subprime mortgage loans. From 2007 to 2008, Freddie Mac executives said the company’s exposure was from $2 billion to $6 billion when it was actually as high as $244 billion, according to one SEC complaint.
Talk about understated, what about the Democrats in Congress? Shouldn’t we prosecute Barney Frank, Chris Dodd, Maxine Waters and all the others who assured us that Fannie and Freddie were stable? Are they not culpable for creating one of the worst financial disasters in American history?
It will take generations to overcome the mess these greedy bastards created. And sadly, only a handful will be held to account.
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