Friday, November 07, 2008

Rahm Emanuel Served on Freddie Mac Board

This should be an automatic disqualification for any position in the federal government. But His Highness has appointed Emanuel to be his chief of staff, in spite of the fact that he served on the board of directors of Freddie Mac when they were causing the problems that led to the meltdown of the financial industry and the current recession.

President-elect Barack Obama's newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot "red flags," according to government reports reviewed by

According to a complaint later filed by the Securities and Exchange Commission, Freddie Mac, known formally as the Federal Home Loan Mortgage Corporation, misreported profits by billions of dollars in order to deceive investors between the years 2000 and 2002.
Emanuel was not named in the SEC complaint but the entire board was later accused by the Office of Federal Housing Enterprise Oversight (OFHEO) (click here to read) of having "failed in its duty to follow up on matters brought to its attention."

It is clear that the reason why 0bama defeated McCain was due to the financial industry meltdown. McCain was well ahead in the polls and was making inroads into many of the blue states up to the point when Lehman declared bankruptcy and Merrill had to be bought out.

But ironically, if any party bears the most blame for the problems, it is the Democrats. Franklin Raines and Jamie Gorelick at Fannie Mae. Emanuel at Freddie Mac. Bawney Fwank and Charles Schumer in congress. And they successfully blamed it on the Republicans.

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