LEAKED: House Ethics Report On Countrywide VIP Scam

File this one under the heading: 'Important story miraculously leaked by a congressional committee on July 5th, during the 2nd-slowest news week of the year, and no one sees it.'

Almost like the Mozilian fraud never happened.

Just the way Washington wants it...

---

AP

WASHINGTON (AP) — The former Countrywide Financial, whose subprime loans helped start the nation's foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report.

The report, obtained by The Associated Press, said that the discounts — from January 1996 to June 2008, were not only aimed at gaining influence for the company but to help mortgage giant Fannie Mae. Countrywide's business depended largely on Fannie, which at the time was trying to fend off more government regulation but eventually came under government control.

"Documents and testimony obtained by the committee show the VIP loan program was a tool used by Countrywide to build goodwill with lawmakers and other individuals positioned to benefit the company," the report said. "In the years that led up to the 2007 housing market decline, Countrywide VIPs were positioned to affect dozens of pieces of legislation that would have reformed Fannie" and its rival Freddie Mac, the committee said.

Some of the discounts were ordered personally by former Countrywide chief executive Angelo Mozilo. Those recipients were known as "Friends of Angelo."

The Justice Department has not prosecuted any Countrywide official, but the House committee's report said documents and testimony show that Mozilo and company lobbyists "may have skirted the federal bribery statute by keeping conversations about discounts and other forms of preferential treatment internal. Rather than making quid pro quo arrangements with lawmakers and staff, Countrywide used the VIP loan program to cast a wide net of influence."

Among those who received loan discounts from Countrywide, the report said, were:

—Former Senate Banking Committee Chairman Christopher Dodd, D-Conn.

—Senate Budget Committee Chairman Kent Conrad, D-N.D.

—Mary Jane Collipriest, who was communications director for former Sen. Robert Bennett, R-Utah, then a member of the Banking Committee. The report said Dodd referred Collipriest to Countrywide's VIP unit. Dodd, when commenting on his own loans, said that he was unaware of receiving preferential treatment but knew his loans were handled by the VIP unit.

The Senate's ethics committee investigated Dodd and Conrad but did not charge them with any ethical wrongdoing.

—Rep. Howard "Buck" McKeon, R-Calif., chairman of the House Armed Services Committee.

—Rep. Edolphus Towns, D-N.Y., former chairman of the Oversight Committee. Towns issued the first subpoena to Bank of America for Countrywide documents, and current Chairman Darrell Issa, R-Calif., subpoenaed more documents. The committee said that in responding to the Towns subpoena, Bank of America left out documents related to Towns' loan.

—Rep. Elton Gallegly, R-Calif.

—Top staff members of the House Financial Services Committee.

—A staff member of Rep. Ruben Hinojosa, D-Texas, a member of the Financial Services Committee.

—Former Rep. Tom Campbell, R-Calif.

—Former Housing and Urban Development Secretaries Alphonso Jackson and Henry Cisneros; former Health and Human Services Secretary Donna Shalala. The VIP unit processed Cisneros's loan after he joined Countrywide's board of directors.

—Rep. Pete Sessions, R-Texas, was an exception. He told the VIP unit not to give him a discount, and he did not receive one.

—Former heads of Fannie Mae James Johnson, Daniel Mudd and Franklin Raines. Countrywide took a loss on Mudd's loan. Fannie employees were the most frequent recipients of VIP loans. Johnson received a discount after Mozilo waived problems with his credit rating.

The report said Mozilo "ordered the loan approved, and gave Johnson a break. He instructed the VIP unit: 'Charge him ½ under prime. Don't worry about (the credit score). He is constantly on the road and therefore pays his bills on an irregular basis but he ultimately pays them."

Johnson in 2008 resigned as a leader of then-candidate Barack Obama's vice presidential search committee after The Wall Street Journal reported he had received $7 million in Countrywide discounted loans.

The report said those who received the discounts knew the loans were handled by a special VIP unit.

"The documents produced by the bank show that VIP borrowers received paperwork from Countrywide that clearly identified the VIP unit as the point of contact," the committee said.

Comments

[Howard T. Lewis III]

Bribes.

[Josie]

Just look at Angilo and tell me he is not a crook. He does not pass the common sense "look at" test...the only thing he is missing (maybe) is a handgun under his suit...

[LiberatedCitizen]

Josie how about dirty dodd he always reminded me of one of those smarmy used car salesmen (not picking on used car salesmen lol I mean how they portray them in the movies). Dodd was dirty as they come he was paid off by the banks for years and years. The dodd-frank bill is a JOKE the vampire squid approves of it that should be enough to send shivers down your back.

In Washington, Blankfein Backs Dodd-Frank

http://dealbook.nytimes.com/2012/07/18/in-washington-blankfein-backs-dodd-frank/?scp=1&sq=blankfein&st=Search

Banking Committee Chairman Chris Dodd, a Favorite of Wall Street

http://www.opensecrets.org/news/2009/11/banking-chairman-chris-dodd-a.html

Color me so surprised eye roll...

dodd breaking up big banks not the solution

http://www.forbes.com/sites/kenrapoza/2012/07/26/dodd-says-breaking-up-big-banks-not-the-solution/

Dodd: Sandy Weill Wrong, ‘Simplistic’ to Break Up Banks


http://www.cnbc.com/id/48333854

Bailed-out banks still struggling to repay government

http://www.reuters.com/article/2012/07/25/us-usa-banks-idUSBRE86O05Y20120725

other good ones

Wall Street is ruining America

http://money.msn.com/investing/wall-street-is-ruining-america-mirhaydari.aspx

Finding Recourse When Investors Are Cheated

http://dealbook.nytimes.com/2012/07/23/finding-recourse-when-investors-are-cheated/

[DailyBail]

More great links, LC.

[DailyBail]

Just look at Angilo and tell me he is not a crook. He does not pass the common sense "look at" test...the only thing he is missing (maybe) is a handgun under his suit...

---

Looks like a mafia don who moved to miami in 1963. You're a lawyer, Josie, remind me again why he's not in jail.

[SKINFLINT]

http://www.federalreserve.gov/aboutthefed/section31.htm

[SKINFLINT]

Dr. Paul has spoken about this in the past. Don't know how valid this is but certainly is worthy of discussion.

[Howard T. Lewis III]

" The Federal reserve is a ponzi scheme" photo at the upper right is misleading. A distorted lens is frequently used to make the subject's head appear proportionately larger than it actually is. Geithner's head is actually much larger than Bernanke's. In this shot, Bernanke is to the left and farther away from Geithner, so his head should appear as a much smaller image. The extended focal length of a telephoto-zoom lens does not explain this distortion in this shot. Here, the photographer apparently has been assigned the task of making Bernanke seem like Brainiac. Check against other Geithner/Bernanke shots. Geithner's head is much bigger than Bernanke's.
The Council on Foreign Relations started using this intentional distortion technique back in the 1920s to make their pet candidates look much smarter and wiser. My uncle noticed this as a Hollywood movie film editor and did a demo at the patent office using a standard lens he advertised as a special lens to 'solve this distortion problem'. By doing so, he received a patent for his 'new lens' . The CFR found out about this and bought the patent with enough money for my uncle to keep his mouth shut. Uncle then bought 3-M @10 cents a share and became wealthy. I just pointed this event out because cameramen from the British royal and American news syndicates are trying like hell to make us believe that we need this Fed Reserve system doberman bait. Gimmicks are all they have.

[Howard T. Lewis III]

This one may well be a photoshop with the same intent to deceive. The above story is accurate otherwise.

[Josie]

@DB

You don't have to be a lawyer to know this, but unfortunately the DOJ is now and has long been a political animal. It is no longer an enforcer of US laws, just a stepping stone for politically-ambitious lawyers. And, as such, is useless, from an enforcement perspective.

What did Mozilo pay in fines a few years back, $65 mil? And insurance covered the settlement costs, right? Joke.

@LC

Dodd is a crook and all on the Hill have known this for years. Example of his character? He and Teddy K. once tagged a young and willing intern in a Capitol Hill closet. Both of the honorable Senators were married, of course. What kind of people do this? And would you trust them with anything important?

And just for yucks, I'll start a small list of folks who should be wearing orange jump suits, but are not:
Cassano, Greenberg and many at AIG
All of GSuchs especially the fixed income group, Fabulous Fab, and Lloyd B
Paulson
Paulsen
Angilo
Raines and all of Fannie
Most of Freddie
Thain
Lewis
Fuld and many cronies at Lehman...