This blog originally founded by Blogger who holds a theological degree and a doctorate in Counseling Psychology. Taught Psychology for 32 years and is now Professor Emeritus. Is a board-certified psychologist and was awarded the Lifetime Achievement Award in his profession. Ministered as a chaplain, and pastored Baptist and Episcopal churches. Publications cover the integration of psychology and theology. Served in the Army, the Merchant Marines and the Peace Corps.

Wednesday, October 22, 2008

Freddie Mac Hired 'Stealth' Lobbyist

By PETE YOST THE ASSOCIATED PRESS

WASHINGTON -- Freddie Mac secretly paid a Republican consulting firm $2 million to kill legislation that would have regulated and trimmed the mortgage finance giant and its sister company, Fannie Mae, three years before the government took control to prevent their collapse.

In the cross hairs of the campaign carried out by DCI of Washington were
Republican senators and a regulatory overhaul bill sponsored by Sen. Chuck Hagel, R-Neb. "DCI’s goal was not to have any Freddie Mac fingerprints on this project, and DCI became the hidden hand behind the effort," one of the three people told the AP.

In the midst of DCI's year long effort, Hagel and 25 other Republican senators pleaded unsuccessfully with then Senate Majority Leader Bill Frist, R-Tenn., to allow a vote. By that time Democrats had enough Republicans lined up to kill Hagel’s bill. Unknown to the senators, DCI was undermining support for the bill in a campaign targeting 17 Republican senators in 13 states, according to documents obtained by The Associated Press

"If effective regulatory reform legislation ... is not enacted this year, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole," the supporting senators wrote in a letter that proved prescient.

Last month, the concerns of the 26 Republican senators who signed Hagel's bill became a reality when the government seized control of Freddie Mac and Fannie Mae amid their near financial collapse.

Federal prosecutors are investigating accounting, disclosure and corporate governance issues at both companies, which own or guarantee more than $5 trillion in mortgages, roughly equivalent to half of the national debt.
READ ENTIRE ARTICLE

4 comments:

Sarkazein said...

Blogger

I would ask that "journalist", WHAT THE HELL IS A REPUBLICAN CONSULTING FIRM!?

Go to DCI's web site..... DCAConsult.com

Sarkazein said...

Correction....DCIConsult.com

Rich N White said...

The shape of things to come?

http://www.telegraph.co.uk/news/newstopics/uselection2008/barackobama/3260074/Republican-fears-of-historic-Obama-landslide-unleash-civil-war-for-the-future-of-the-party.html

...as predicted.

matt said...

I found this list online, and don't remember if it had been posted here or not...

Top recipents of Fanny Mae and Freddie Mac campaign contributions:

1. Dodd, Christopher - $133,900
2. Kerry, John - $111,00
3. Obama, Barack - $106,000
4. Clinton, Hillary - $75,500
Barney Frank is 16th on the list with about $41,000. Pelosi is 22nd with about $33,000.

Funny, I think I saw every one of these guys on TV supporting the bailout....

"We can't expect the American people to jump from capitalism to Communism but
we can assist their leaders by giving them small amounts of Socialism until they
awaken one day to find out they have Communism."
-Russian Premier Khrushchev 1962

"The American people will never knowingly adopt socialism. But, under the name of 'liberalism,' they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened." - Norman Thomas, U.S. Socialist Party presidential candidate 1940, 1944 and 1948