Thursday, October 24, 2013

Bank of America Takes Fall for Fannie Mae and Freddie Mac

If Obamacare isn’t enough of a demonstration of the incompetence of the federal government, we have Fannie Mae and Freddie Mac stepping up to the plate once again.  These corrupt organizations have sued Bank of America for fraud and have won.  This is theater of the absurd.
Must we remind everyone that it was Democratic operatives who ran these government sponsored entities.  It was scoundrels like James Johnson who brokered deals with Countrywide that brought about this whole housing crisis.  Here is a quote from the book Reckless Endangerment that sums up the relationship between Fannie Mae and Countrywide:

It was no coincidence that Countrywide’s operations were so intertwined with Fannie Mae’s and so similar.  Both companies had the same goals to achieve and the same enemies to defeat.  And for years, Mozilo’s friendship with Johnson had given him a front-row seat for the Fannie Mae way – the deep political focus, the co-opting of regulators, the manipulation of public opinion, and extensive granting of to friends and potential foes.

It’s tragic enough that players like Angelo Mozilo and James Johnson, the two players who almost destroyed the U.S. economy, was able to walk away scot free, now Bank of America has to pay the price for Fannie Mae and Countrywide’s sins. And let’s not forget the accusations that the Federal Reserve and Treasury Department threatened then CEO Ken Lewis if he didn’t make the deal.

But hey, let’s have the government takeover our health care system.  What could possibly go wrong?


No comments: