Gubmint is broke[n]

Not so long ago, the antics of those in Congress would have caused armed insurrection. Quite literally. Today, sadly, we are much more civilized, or should I say domesticated? My dog was “domesticated” and it cost him two of his prize possessions. That is what has happened to us, as a race- the human one. Judicial Watch, which is basically the anti-ACLU, has obtained documents that show that members of Congress were well aware of problems facing both Fannie Mae and Freddie Mac going back 10 years.

In January 1999, Chairman and CEO Franklin Raines approved a recommendation made by the Chief Financial Officer (CFO) (Tom Howard) and the Controller (Leanne Spencer) to defer recognition of $200 million in amortization expense. This deferral, along with other accounting decisions made at that time relating to provisions for loan losses and the recognition of low-income housing tax credits, allowed management to meet the EPS threshold for maximum bonuses.” [Highlighting is mine.]

So, they were sweeping expenses and losses under the rug in order to receive inflated bonuses. Where, pray tell, is the AIG style outrage from Barney Frank and Chris Dodd. Oh I forgot, Barney’s boyfriend worked for Fannie at the time.

FHFA letter, dated December 3, 2004, to Congressman Barney Frank: “On November 15, 2004 Fannie Mae filed a Form 12b-25 with the Securities and Exchange Commission (SEC). Fannie Mae indicated that its external auditors could not complete their reviews of its financial statements and noted the possibility of up to a $9 billion loss dating back to 2001

ViaMichelle Malkin, the whole story.