Fannie and Freddie Helped Spawn the Mortgage Crisis, and So Did Affordable Housing Mandates. WallStreetInsiders&WashingtonLawMakers have been a perfect marriage, and that makes for One Huge Family ...who are YOU related to?

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Cleaning House: The Financial Crisis and the GSEs

"Fannie and Freddie entered into agreements accepting responsibility for misleading conduct discovered by the SEC"

http://american.com/archive/2011/december/cleaning-house-the-financial-crisis-and-the-gses

-December 20, 2011-

Disclosures contained in SEC complaints show the need for further investigation of Fannie and Freddie’s characterization of subprime loans.

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Taxpayers Paying to Defend ex-Fannie, Freddie Executives from SEC

By Matt Stoller, the former Senior Policy Advisor to Rep. Alan Grayson and a fellow at the Roosevelt Institute. You can reach him at stoller (at) gmail.com or follow him on Twitter at @matthewstoller.

http://www.nakedcapitalism.com/2011/12/taxpayers-paying-to-defend-ex-fannie-freddie-executives-from-sec.html

-December 18, 2011-

Last Friday, the SEC announced it was suing six top executives at Fannie Mae and Freddie Mac for misleading investors. Though the SEC can only sue on civil fraud charges, the announcement was greeted with fanfare, since it does relate directly to the housing bubble.

I noticed a tidbit in the FT that I think is more significant than commonly understood: “Fannie and Freddie are paying the legal fees of the former executives, officials said.” To be clear, it’s not Fannie and Freddie putting out these fees, it’s the taxpayer that owns and continually pumps capital into these companies.

The Federal Housing Finance Agency, led by acting Director Ed Demarco, made the choice to pay the legal fees for these executives facing the SEC. In effect, one government agency is putting forward resources to sue six individuals defended by the resources of another government agency.And how much will this cost?... http://www.nytimes.com/2009/09/06/business/economy/06gret.html ...Before this SEC suit, executives at Fannie and Freddie had other lawsuits against them. When I worked for Rep. Grayson in 2009, he asked, and found out that the taxpayer had already shelled out millions. http://www.nytimes.com/2009/09/06/business/economy/06gret.html ...Rep. Randy Neugebauer updated the costs in 2011... http://randy.house.gov/index.cfm?sectionid=20&itemid=1088 ...and found that it had cost something on the order of $100 million... http://www.nytimes.com/2011/01/24/business/24fees.html?_r=2&pagewanted=all ...for pre and post bailout costs reimbursed to executives at Freddie and Fannie.

(((Continue Reading this article Here))) http://www.nakedcapitalism.com/2011/12/taxpayers-paying-to-defend-ex-fannie-freddie-executives-from-sec.html

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SEC Sues Former Fannie Mae And Freddie Mac Executives For Fraud

http://www.huffingtonpost.com/2011/12/16/fannie-freddie-sec_n_1153603.html

-12/16/11-

The Securities and Exchange Commission sued six former Fannie Mae and Freddie Mac executives on Friday for misleading the public about the mortgage giants' exposure to risky subprime mortgages as the housing bubble deflated.

Former Fannie Mae chief executive Daniel Mudd and former Freddie Mac CEO Richard Syron are the highest-ranking officials yet to be charged for their involvement in the housing meltdown that triggered the biggest financial collapse since the Great Depression. Along with four other former executives for the companies, they are accused of fraud, under-representing the amount of exposure the finance companies had to dodgy mortgages.

The SEC action, filed in U.S. district court in New York, is the latest signal that federal agencies are cracking down on the executives who were at the helm of the nation's largest financial firms during the housing bust. Earlier this week three former top Washington Mutual executives settled a lawsuit with the Federal Deposit Insurance Corporation... http://www.huffingtonpost.com/2011/12/13/wamu-execs-to-pay-64-mill_n_1146160.html ...for $64 million for their actions during the subprime lending disaster.

(((Continue reading this article Here))) http://www.huffingtonpost.com/2011/12/16/fannie-freddie-sec_n_1153603.html

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SEC CHARGES FORMER FANNIE MAE AND FREDDIE MAC EXECUTIVES WITH SECURITIES FRAUD

-Companies Agree to Cooperate in SEC Actions-

FOR IMMEDIATE RELEASE ///

2011-267: http://sec.gov/news/press/2011/2011-267.htm

Washington, D.C., Dec. 16, 2011 — The Securities and Exchange Commission today charged six former top executives of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) with securities fraud, alleging they knew and approved of misleading statements claiming the companies had minimal holdings of higher-risk mortgage loans, including subprime loans.

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Fannie Mae Loss Widens, Asks Taxpayers For $7.8 Billion

http://news.yahoo.com/fannie-mae-loss-widens-asks-taxpayers-7-8b-221752510.html

-Nov 8, 2011-

WASHINGTON (AP) — Mortgage giant Fannie Mae is asking the federal government for $7.8 billion in aid to cover its losses in the July-September quarter.

The government-controlled company said Tuesday that it lost $7.6 billion in the third quarter. Low mortgage rates reduced profits and declining home prices caused more defaults on loans it had guaranteed.

The government rescued Fannie Mae and sibling company Freddie Mac in September 2008 to cover their losses on soured mortgage loans. Since then, a federal regulator has controlled their financial decisions.

Taxpayers have spent about $169 billion to rescue Fannie and Freddie, the most expensive bailout of the 2008 financial crisis. The government estimates that figure could reach up $220 billion to support the companies through 2014 after subtracting dividend payments.

Fannie has received $112.6 billion so far from the Treasury Department, the most expensive bailout of a single company.

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Fannie Mae Loss Widens, Asks Taxpayers For $7.8 Billion

http://implode-explode.com/viewnews/2011-11-09_FannieMaeLossWidensAsksTaxpayersFor78B.html

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California attorney general's office subpoenas Fannie, Freddie

http://www.latimes.com/business/realestate/la-fi-mortgage-probe-20111117,0,3673653,full.story

By Alejandro Lazo and Jim Puzzanghera, Los Angeles Times

11-16-2011

Reporting from L.A. and Washington—

Investigators with the California attorney general's office have subpoenaed information from mortgage titans Fannie Mae and Freddie Mac as part of a wide-ranging inquiry into lending and foreclosure practices in the state.

The subpoenas ask the government-controlled finance companies to answer a series of questions about their activities in California, including their roles as landlords who own thousands of foreclosed properties. The attorney general's office is also seeking details of Fannie and Freddie's mortgage-servicing and home-repossession practices, according to a person familiar with the matter.

Continued Here:

http://www.latimes.com/business/realestate/la-fi-mortgage-probe-20111117,0,3673653,full.story

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