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Fannie and Barney-The Great Cover Up

In 2002 John Snow, then Secretary of Treasury, appeared before Barney and his band of clowns and tried to get the committee to adopt major changes to the functioning of Fannie. Barney blew him off in a successful effort to cover up for the accounting fraud perpetrated...

By Joel Ross | Updated on May 18, 2010

In 2002 John Snow, then Secretary of Treasury, appeared before Barney and his band of clowns and tried to get the committee to adopt major changes to the functioning of Fannie. Barney blew him off in a successful effort to cover up for the accounting fraud perpetrated by Franklin Raines and his cohorts.  Raines got a bonus and we got a financial crisis. Barney would not allow Fannie to be touched and insisted that we needed more home ownership, especially by people who could not afford to be owners. So began the subprime disaster.

Today there is no effort to change things at Fannie. There is a major effort to change banking and Wall St, which is needed, but Fannie goes on losing $20 billion of taxpayer hard earned money every month. 46% of all loan modifications by Fannie are going into default again. The cost when all done will be close to $400 billion of taxpayer money vs TARP which all of the large banks repaid with an 8% profit to the taxpayers. Yet who gets called names. Who gets hauled before TV cameras and accused of misdeeds. Who does the media make to look like criminals. Not Franklin Raines or Fannie executives of the past.

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