The strong stench of corruption at Freddie Mac and Fannie Mae

| December 23, 2009 | Reply

What does it tell you when there is no independent Inspector General for a federal agency that oversees $6 trillion in mortgages? This is not a thought experiment. It is undisputed reality.

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Image: Rahm Emanuel (creative commons)

And there is good reason to suspect that something utterly corrupt is going on at Fannie Mae and Freddie Mac. There are pointed allegations jointly made by progressive blogger Jane Hamsher and fiscal ultra-conservative Grover Norquist, who don’t see eye to eye on much of anything. But they have come together to urge that we allow the light of day to fall onto Fannie Mae and Freddie Mac. The allegations are detailed, and you can read them here. The center of the storm is the current White House Chief of Staff, Rahm Emanuel. A rejected FOIA request only makes these allegations more troubling.   The allegations are exacerbated by the fact that the Acting Inspector General was dismissed early this year through the effects of legislation pushed through by Rahm Emanuel. The fact that $800 Billion in taxpayer funds is at stake (more than $7,000 for each one of the 111,000,000 American households) makes this all the more surreal. To put this $800B number in perspective, the Defense Secretary just made a big announcement that we should set aside a “mere” two billion dollars for “nation building.”

A second set of allegations has also been made: that the White House is facilitating the cover up of potential malfeasance at Fannie Mae and Freddie Mac until the 10-year statute of limitations has run out on Rahm Emanuel.

All of this incredibly disturbing. If Mr. Obama is the man he portrayed himself to be during the campaign, he will immediately appoint an independent Inspector General in order to get to the bottom of this.

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Category: Corruption, Economy, Politics, Uncategorized

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich and his wife, Anne Jay, live in the Shaw Neighborhood of St. Louis, Missouri, where they are raising their two extraordinary daughters.

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