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Will there be a Criminal Investigation?; I can suggest some names.
Topic Started: Sep 6 2008, 04:58 PM (260 Views)
Tidbits

http://www.nytimes.com/2008/09/06/business/06fannie.html?ref=business


Quote:
 
Senior officials from the Bush administration and the Federal Reserve on Friday called in top executives of Fannie Mae and Freddie Mac, the mortgage finance giants, and told them that the government was preparing to place the two companies under federal control, officials and company executives briefed on the discussions said.


Quote:
 
The plan, which would place the companies into a conservatorship, was outlined in separate meetings with the chief executives at the office of the companies’ new regulator. The executives were told that, under the plan, they and their boards would be replaced and shareholders would be virtually wiped out, but that the companies would be able to continue functioning with the government generally standing behind their debt, people briefed on the discussions said.


Is it a bail out for NY banks and Wall Street bond houses and their clients?


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Deleted User
Deleted User

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AFTER, they knew they were failing, they gave Jesse Jackson more money.

They gave him lots of money in the past. It's not like it's their money.

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Bill Anderson
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You have to understand that Fannie and Freddie are artificial entities. They would not have appeared in a free market, and they serve two important political purposes: (1) they dispense lots and lots of cash to politicians, and (2) they are a repository for political hacks like Jamie Gorelick (who made $26 million while she was there) who are not necessarily talented as executives, but who have great political contacts.

http://online.wsj.com/article/SB121599777668249845.html?mod=opinion_main_review_and_outlooks

http://online.wsj.com/public/article_print/SB121677050160675397.html

:bill:
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brittany

Always good to have an economist at LS.
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