ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Tuesday, December 09, 2008

House Inquiry as to What Happened at Freddie and Fannie

I have been watching Waxman's committee on C-Span which is conducting the inquiry into the meltdown at Freddie and Fannie tonight. Four previous CEOs of Freddie Mac were there as witnesses. It has been enlightening. I particularly appreciated Stephen Lynch (D-Ma). He suffered the fools (CEOs) not gladly at all. When former CEO Mudd repeatedly ducked and evaded, Lynch went right after him. He said that he really was feeling good about conservertorship after listening to Mudd's non-answers. At least these clowns were gone. Lynch did not sound like a Democrat at all.

One little item, if you call $16 million in salary and bonus to CEO Mudd "little," was the matter of the CEO's bonuses. Their answers could have come out of Uncle Remus (that might be a bit politically incorrect but extremely apt). "Who, me? We weren't in the room with the committee that set the goals. That was the independent directors etc etc etc blah blah blah." What baloney, do they really think anybody believes that? Of course they had a roll in setting their own goals and their own resulting huge bonuses and, more importantly, what drove those bonuses, you know, like buying up LOTS of subprime mortgages of folks who couldn't afford them, but gave the appearance of high profitability (at least until the defaults started) and thus driving that market

The situation at Fannie and Freddie, I think, lies at the root of what has happened to our enconomy in this year. I am going to follow these hearings as closely as I can. I think when the time comes for holding people accountable (it would have been nice if that happened BEFORE the election), this is going to be Ground Zero.

Your Co-Conspirator,
ARC: MontereyJohn

Comments (1)
Desert Rat said...

And people like Rep. Barney Frank (D-Mass) who blocked who blocked reform of Freddie and Fannie should spend some hard time in prison.