Everyone knows the taxpayer had to takeover Freddie Mac last year. But what many do not know is President Obama’s Chief of Staff, Rahm Emanuel was once on the board of directors during it’s heyday of mismanagement.

Rahm Emanuel and Freddie Mac

Mr. Emanuel profited greatly during his tenure on the Freddie Mac board according to ChicagoTribune.com:

“One of those allegedly asleep-at-the-switch board members was Chicago’s Rahm Emanuel-now chief of staff to President Barack Obama-who made at least $320,000 for a 14-month stint at Freddie Mac that required little effort.”

Scandal’s and political high pressure lobbying to thwart regulation were all the rage at the mortgage giant during Emanuel’s time there.

Let me quote the ChicagoTribune.com again,

“On Emanuel’s watch, the board was told by executives of a plan to use accounting tricks to mislead shareholders about outsize profits the government-chartered firm was then reaping from risky investments. The goal was to push earnings onto the books in future years, ensuring that Freddie Mac would appear profitable on paper for years to come and helping maximize annual bonuses for company brass.

…During his brief time on the board, the company hatched a plan to enhance its political muscle. That scheme, also reviewed by the board, led to a record $3.8 million fine from the Federal Election Commission for illegally using corporate resources to host fundraisers for politicians. Emanuel was the beneficiary of one of those parties after he left the board and ran in 2002 for a seat in Congress from the North Side of Chicago.”

I have written extensively mainly targeted at my “foreclosure” or “loan modification” readers on how not to trust the Obama administration on mortgage issues. Especially those ideas the administration publicizes to “help foreclosure victims”. I often say, this administration will be about as helpful as the Bush administration.

Which we all know was no help at all. Well, this one won’t be any better. Many foreclosure victims were holding their breath waiting for the Obama mortgage plan hoping against all hope, he would ride in and save them from the “mean” foreclosing lenders.

He did nothing of the sort.

With his right-hand man, Rahm Emanuel being a mortgage and Wall Street crony himself, it is no surprise.

Good Luck!

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