Chris Dodd, Kent Conrad & Countrywide Mortgages
American Political Oligarchs Gain Favors Before Financial Meltdown
Aug 1, 2009
Bi-partisan preferential treatment, possible bribery and/or ethical violations, have been exposed throughout the American government and their institutions. Senior senators, House aids, cabinet members, judges and leaders of quasi governmental institutions, have come under scrutiny for possible criminal or ethics infractions associated with Countrywide Financial Mortgage Corporation.
Countrywide Financial
The company, once the nation's largest mortgage originator, started a VIP borrowers program known as the "Friends of Angelo," (named after former Countrywide CEO Angelo Mozilo.) It was designed to get a finger into Congressional legislation as told by Robert Feinberg to Justice Department investigators in October 2008. NBC News reported on October 30th of that year that the “…loan program…provided special mortgage deals to the well-connected and powerful…” NBC continued that “…prosecutors and FBI agents…focused on whether the preferential treatment given to VIP customers was part of an effort by Countrywide to buy influence.”
Senators, Cabinet Members, Aids and Judges
These American oligarchs, except for their covertness and possible illegality, differ little from their Russian, Chinese, Indian and British counterparts worldwide. A Las Vegas Review-Journal editorial on July 29th 2009 claimed that “…what's on display here is a culture in which powerful politicians receive so many special favors and set-asides that they no longer even pay them much attention…. "
On March 19th 2009 the U.S. House of Representatives Committee on Oversight and Government Reform published a partial list of the Friends of Angelo.
- Senator Chris Dodd – chairman of the Banking Committee!
- Senator Kent Conrad – chairman of the Budget Committee and a member of the Finance Committee!
- Alphonso Jackson – former HUD Secretary.
- Donna Shalala – former Health and Human Services Secretary
- Richard Holbrooke – former U.N. ambassador and assistant Secretary of State.
- Henry Cisneros – former HUD Secretary.
- Richard Aldrich – California state appeals court judge.
- Robert Yalda – Calabasas, California director of transportation and intergovernmental affairs.
- Clinton Jones III – House Financial Services senior counsel!
- Joyce Brayboy – U.S. Rep. Melvin Watt’s Chief of Staff.
Fannie Mae, the biggest buyer of Countrywide's mortgages, also had Friends of Angelo. Glenn Simpson and James Hagerty of The Wall Street Journal reported in June 2008, former Fannie Mae CEOs James Johnson and Franklin Raines, received preferential loans from Countrywide and were “…working very closely [together]….”
- James Johnson – a longtime Democratic Party power-broker “returned to Countrywide several times to finance his growing real-estate holdings,” reported the WS Journal. In 2006, “Johnson received a $5 million home-equity line of credit from Countrywide…and in December 2007 he received another Countrywide home-equity line of credit for $1.01 million,” reported Simpson. Johnson’s lawyers concede the arrangement but insist there is nothing illegal about his actions.
- Franklin Raines – who succeeded Johnson at Fannie in 1998, was also a repeat customer of Countrywide while CEO. The onetime Clinton administration budget director refinanced with Countrywide a $1 million loan 3 times (originally granted by Countrywide.) In his last refi he received a 1.25% discount over the average mortgage rate for his type of loan, according to WSJ.
- Daniel H. Mudd – Mr. Raines's successor, “received two mortgage loans for about $3 million each…while he was a Fannie Mae officer,” claimed the Journal.
- John Potter – Postmaster General received a mortgage, which reportedly “…included one shaved point and waived fees for his $322,700 loan…” WSJ reported.
- Patty Johnson – CEO of nonprofit Rebuilding Together received the “full treatment” and a 0.75 points reduction according to Countrywide Managing Director Andy Bielanski.
The review-Journal put it best when they argued, “...these men [and women] …have lived in the cocoon of privilege far too long…. They figure they're entitled…”
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