Dennis Kucinich Will Investigate Fannie Mae and Freddie Mac

(noon. – promoted by ek hornbeck)

Rep. Dennis Kucinich (D OH-10), Chairman of the Domestic Policy Subcommittee of the Committee on Oversight and Government Reform, is calling for an investigation of lifting of the $400 billion cap by the Treasury Department and possible corruption.

This is Rep. Kucinich’s statement:

As Chairman of the Domestic Policy Subcommittee of the Committee on Oversight and Government Reform, I’m announcing that the Subcommittee will launch an investigation into the Treasury Department’s recent decision to lift the current $400-billion cap on combined federal assistance to Fannie Mae and Freddie Mac, opening the way for additional, unlimited funds through the end of 2012. This investigation will include the role played by Fannie Mae chief executive Michael J. Williams and Freddie Mac chief executive Charles E. Haldeman in the decision, if any, and will seek to ensure that the additional assistance is used for homeowners and not Wall Street.

Many questions remain unanswered regarding this move by the Treasury. Why suddenly remove the cap? Indications are that Freddie and Fannie, even as millions of Americans lose their homes, have used just $111 billion of the $400 billion previously available to them. Is lifting the cap on assistance a back-door TARP?

Additionally, I want to determine whether Fannie and Freddie have a cohesive plan to buy up the under-performing mortgages that remain on the books of the big banks, at appropriate prices, and undertake a massive reworking of the terms of the mortgages so as to stem the foreclosure crisis that continues to plague our country.This new authority must be used responsibly and for the benefit of American families. This cannot be used simply to purchase toxic assets at inflated prices, thus transferring the losses to the U. S. taxpayers and acting as a back-door TARP.

As a result of a curiously-timed Christmas Eve announcement by the Treasury Department, the mortgage giants will have access to unlimited funds without having to come back to Congress. Since the federal government is the majority owner of both companies, their operations will remain under Administration control.

This relationship between Treasury and Fannie and Freddie bears inspection, particularly in the wake of reports that the mortgage giants’ chief executives will now receive $900,000 each in annual compensation, bonuses of up to $6 million each, and an additional $42 million in special compensation will be spread among a dozen other executives.

The lifting of the cap and the announcement of huge bonuses for the executives of both companies came from the White House in a Christmas Eve news dump in hopes it would be lost in the news cycle over the holiday. What does all this money mean? Apparently, not much since foreclosures will begin in January.

You can read Jane Hamsher’s article at FDL

Kucinich to Investigate Fannie/Freddie Bailout

Additionally, Jane has asked that we donate $5 to Rep. Kucinch through ActBlue to show support for this investigation.

28 comments

Skip to comment form

    • TMC on December 30, 2009 at 5:49 pm
      Author

    for not being intimidated by Rahm.

  1. I expect there will be a lot of opposition to this from the White House and Wall Street.

    • banger on December 30, 2009 at 8:00 pm

    Kucinich will be ignored by Congress and, most importantly, by the MSM which will be too busy instilling a fear of “terrorism”. Progressive voters didn’t even bother to vote for him in the primaries. If they had he would have some real power and the oligarchs would pay attention.

    There is no chance whatsoever that anything can or will be done about the corruption in this country. It is system-wide from top to bottom.

    There is no mechanism in society that can force change since the left has given up effective politics in the past few decades. To change anything the progressive forces in society must be a major threat to internal order. Otherwise forget about it and return to spectating and making useless gestures.

    • Alma on December 31, 2009 at 3:22 am

    to make Dennis clones for every house and senate seat.

  2. Throw this in to the rotten scenario!  Yep, this went down THIS December.  AIG!  

    Audit: taxpayers lose big on AIG, auto bailouts as administration extends $700 billion fundBy Daniel Wagner, AP, December 9th, 2009

    . . . .

    THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

    WASHINGTON (AP) – The Obama administration has extended the $700 billion financial bailout program until October, setting up a struggle between Democrats who favor using some of the leftover money to help generate jobs and Republicans who say it should be used to shrink soaring budget deficits.

    The administration insists the bailout fund is still needed to prevent further turmoil in the banking system. In announcing the decision Wednesday, Treasury Secretary Timothy Geithner said extending the program also will help homeowners struggling to avoid losing homes to foreclosures* and small businesses having trouble getting loans. . . .

    What this AP article does NOT say (and, probably, never would) is that these funds are without any kind of regulations on them. Gratis! [I’m searching for more on that, but doesn’t seem to be available.  It was, however, discussed on the Ed Schultz radio show today.]

    Here’s more filth:

    Bailout pay czar OKs $4.3-million boost for AIG exec

    December 21, 2009 |  4:00 pm

    Bailed-out insurer American International Group today got permission to award $4.3 million in compensation to an employee who agreed to stay with the firm. . . .

    “While the cats are away, the mice will play.”  Only, in this case, we’re talking RATS!

    The insatiable GREED is unceasing and unbelievable.  As is, the “Dr. Strangelove” mentality of going about blowing up parts of the world bit by bit!

    *Au contraire — it will not prevent mortgage foreclosures, but will, undoubtedly, assure many more foreclosures.

     

  3. I have yet to carry out the sentences of the guilty parties upon my conclusions, but does anyone know how to tie a noose?

  4. I wanted to but because I’m so fucking reality based I decided to be ‘pragmatic’. He actually went over pretty good at the Union debate and Big ED loves him. He changed the debate with his jabs and pokes. He has strange appeal in some odd places. The media mocks him because he possess not threat but like Dean he is a populist and he is scrappy.  I don’t count him out he is effective at reminding people what an honest pol is and does, he’s a fly in their ointment. I’m glad he is in the government, who knows someday we may have a third party where the few populist pols will help play a part. Everything is possible I’m learning as I get older an nothing can be ruled out, it’s up to us to make these progressives viable now and in the future.  

Comments have been disabled.