Thursday, December 11, 2008

Why Didn't Anybody Stop Me?!

I know I talk too much about this stuff, but I could not resist this. C. E. O. Franklin Raines, under whom Fannie Mae's purchases of subprime mortgages exploded*, said to a U. S. House of Representatives committee recently "It is remarkable that during the period that Fannie Mae substantially increased its exposure to credit risk its regulator made no visible effort to enforce any limits."

This is priceless. Back when Bush and some Republican lawmakers were trying to rein in Fannie Mae, apparently Franklin Raines, who spent tens of millions of dollars on lobbyists to buy off congress, was secretly thinking, "Stop me before I buy more unsafe mortgages."


*Somewhat due to Raines's changing the compensation scheme to reward executives not for generating profits, but for acquiring whatever odiferous mortgages they wanted to acquire.

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