The first sign of what would ultimately become a $3 billion fraud surfaced Jan. 11, 2000, when Fannie Mae executive Samuel Smith discovered Taylor, Bean & Whitaker Mortgage Corp. sold him a loan owned by someone else.
Let’s boil down the Securities and Exchange Commission’s claims last week against six former Fannie Mae and Freddie Mac executives to their essence. Every disclosure that the SEC says amounted to fraud is something the government blessed or turned a blind eye to as it was happening.
The White House says it’s finally ready to consider new ideas for what to do about Fannie Mae and Freddie Mac . Still absent from the government’s agenda is any serious effort to hold anyone accountable for their ruin or investigate why they collapsed.
With the expected departure of presidential chief of staff Rahm Emanuel , leaving before U.S. national elections to run for mayor of Chicago, President Barack Obama can turn to a number of ready replacements.
In the face of opposition from bankers, U.S. Senator Susan Collins agreed to ratchet back a proposal that would prevent banks from using so-called trust- preferred securities, or TruPS, to appear better capitalized.