Fannie Mae needs to fall on her ass

“Fannie Mae”, that gigantic mortage company with the goofy name, has got off the hook

Fannie Mae, the mortgage finance company, said today it has been informed by the Department of Justice that no charges will be filed in connection with billions of dollars in accounting irregularities. […]

Fannie Mae was notified in October, 2004, that a federal probe was underway into accounting policies and practices. In September, 2004, regulators accused it of massive violations of accounting rules. That set off an exhaustive and expensive re-audit of three years of its financial operations that produced steady revelations of new accounting errors.

Federal officials also had accused Fannie Mae of “extensive financial fraud” over six years by doctoring earnings so executives could collect hundreds of millions of dollars in bonuses.

Why?

Fannie, chartered by Congress to provide a ready source of cash for home mortgages, finances about 20 percent of the U.S. home-mortgage industry.  (emphasis mine)

So it’s a corporation of the old school, openly created by the State rather than encouraged by convenient legal loopholes.  It’s also quite the player, to the point that most folks assume it goes even further beyond this kind of symbiotic relationship into being no different than, say, FEMA.  Is it any wonder that they got off?

The artificial propping up of home ownership, especially the interpretation of it as an investment (this makes no sense unless you own a ton of them and only stay in one), is just one of the pieces to the puzzle of the gradual cluster-fucking of the US economy.  Congress chartered it, they can — and should — un-charter it.

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About b-psycho

Left-libertarian blogger & occasional musician.
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