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Monday, June 16, 2008

Democratic Senators Kent Conrad and Christopher Dodd Linked To Countrywide Financial

Let the Democratic investigations begin..... into these two Democratic Senators, Kent Conrad and Christopher Dodd. (No one hold your breath)

The WSJ shows some links that should be worrisome for the Democratic party as more and more news and information comes out about links between politicians and Countrywide Financial are exposed.

Take Senator Kent Conrad, the North Dakota Democrat whose office issued a Friday statement saying that "I never met Angelo Mozilo." What he did not say then but admitted under later questioning by a Journal reporter is that, although he may not have had a face-to-face meeting with the Countrywide CEO, Mr. Conrad had called Mr. Mozilo and asked for a loan. The result was a discounted loan on his million-dollar beach house and a separate commercial loan of a type that residential lender Countrywide did not even offer to other customers, regardless of the rate.

The Conrad tried to make the issue "go away":

Almost as breathtaking is Senator Conrad's attempt to use a charitable contribution for the estimated amount of any mortgage savings – $10,500 – to make the issue go away. So while the Senator says he did nothing wrong, now that his nonmistake has been discovered he'll nonetheless give away the nonspecial treatment cash. There is ample evidence here to warrant an investigation, including subpoenas for relevant documents.

Then they show Dodd's involvement:

The same goes for Senator Christopher Dodd (D., Conn.), who chairs the very Banking Committee responsible for drafting the laws that govern Countrywide's market. Mr. Dodd is still in denial mode, but so far no one has knocked down the story that he received discounted loans as part of Countrywide's "Friends of Angelo" program.

Read the complete Wall Street Journal article for yourself....

Malkin asks, "How stupid do unscrupulous borrowers Chris Dodd and Kent Conrad think you are?"

Then she answers:

Really, really stupid.

Remember the man that was selected by Barack Obama, Jim Johnson, to "vet" Obama's VP prospects, was just forced to step down from that position because of his ties to Countrywide Financial.

WSJ provides a little background for those not familiar with the controversy surrounding Countrywide Financial:

The relationship between Countrywide and Fannie Mae goes to the heart of the mortgage crisis. Fannie makes its money by borrowing vast sums at low rates (thanks to an implied taxpayer guarantee on its loans) and then using that cash to buy loans from mortgage originators like Countrywide. Fannie then holds the mortgages and earns interest on them, or pools them into securities for sale to investors.

Fannie has been buying more home loans from Countrywide than from anyone else. In its most recent 10-K report filed with the Securities and Exchange Commission in February, the company reports: "Our top customer, Countrywide Financial Corporation (through its subsidiaries), accounted for approximately 28% of our single-family business volume in 2007, compared with 26% in 2006."

They then suggest that Congress do a little investigating into the of the contacts between Countrywide and the politicians receiving favors from the lender.

The last word goes to WSJ:

Democrats in Congress are trying to pass a bailout for mortgage borrowers and lenders like Countrywide, and they have been holding reform of Fannie Mae and its cousin Freddie Mac hostage to get President Bush to agree. Mr. Dodd is one of the main hostage-takers. It is time he and Mr. Frank dropped this political ransom-taking and finally subjected Fannie and Freddie to tough oversight. This means giving a regulator the power to set their capital ratios and portfolio securities limits, so that taxpayers have some protection against their potential losses.

I guess we should ask Congress about that investigation as well. Do so by calling 202-224-3121.

Didn't these politicians promise to clean up Congress? Have the most ethical Congress ever? You know, all those promises in 2006.