The Federalist: The looting of America

Sunday, July 10, 2011

The looting of America

THE BI-PARTISAN LOOTING OF AMERICA

In buying the corrupt lender Countrywide, Bank of America has been pouring billions and billions into a Black Hole. B of A just last week pumped in another $20.4 billion, but the red ink keeps flowing.

If anyone needed any proof that the Wall Street Elites, backed by their bi-partisan Beltway allies in Washington, are looting this nation they need only look at Countrywide. Crooked home loans, fraud, the implosion and free fall of the entire banking system, a nationwide home foreclosure nightmare costing taxpayers trillions, bribary of public officials . . . and no one goes to jail.

Welcome to the United Kleptocracy of America.

When Bank of America Corp. acquired mortgage giant Countrywide Financial Corp. three years ago, cementing BofA's position as a consumer banking leader, the purchase price was a measly $2.5 billion in stock reported the Los Angeles Times.

But the real cost could easily be 10 to 15 times that amount after the home lender incurred huge losses under BofA's ownership and the bank agreed to pay billions of dollars to settle litigation over bad loans made by Countrywide during the housing boom. On Wednesday alone, the bank added $20.4 billion in expected costs to the tally.

The mounting numbers have made the acquisition of Countrywide one of the most misguided takeovers in the history of banking, analysts say. The worst by a mile," FBR Capital Markets analyst Paul Miller said — or at least the worst since he began following the industry in 1992.

Talk show host Dr. Michael Savage demands
to know why no one is in jail after billions
are stolen in banking and loan fraud.

When the Charlotte, N.C., bank agreed in January 2008 to buy Countrywide, the nationwide mortgage meltdown was well underway in the wake of surging defaults on subprime and other high-risk loans written by the Calabasas company and other lenders.

Shortly after the takeover was completed the following July 1, Kenneth Lewis, BofA's chief executive at the time, acknowledged that Countrywide's losses were running at the high end of what his staff had projected.

But because accountants had aggressively written down the value of Countrywide's assets before transferring them to BofA's books, Lewis predicted the combined home-loan business, consisting mostly of Countrywide's operations, would immediately show a profit — and could see huge earnings growth once the mortgage industry recovered.

Instead, the unit has bled about $16 billion in red ink since the Countrywide takeover — with no real industry recovery in sight.

The $20.4 billion in bad news disclosed Wednesday includes $8.5 billion in payouts to 22 institutional investors to settle demands that Bank of America repurchase bonds backed by Countrywide mortgages. An additional $5.5 billion is to beef up reserves for similar demands by other investors.

The bank also said it would record $6.4 billion in additional mortgage-related charges for the second quarter. That amount includes a $2.6-billion write-off of its Countrywide investment and expenses for revising its mortgage-servicing operations to comply with orders from the Federal Reserve and the Office of the Comptroller of the Currency, which regulates national banks.

BofA said the newly announced costs meant it would report a net loss of $8.6 billion to $9.1 billion for the second quarter, instead of a profit of $3.2 billion to $3.7 billion. Wall Street seemed to breathe a sigh of relief that things weren't even worse.

Corruptus in Extremis

Two U.S. senators, two former Cabinet members, and a former ambassador to the United Nations received loans from Countrywide Financial through a little-known program that waived points, lender fees, and company borrowing rules for prominent people.

Corrupt Democrat Chis Dodd got most of the press but
the coverup was bi-partisan.

Senators Christopher Dodd, Democrat from Connecticut and chairman of the Banking Committee, and Kent Conrad, Democrat from North Dakota, chairman of the Budget Committee and a member of the Finance Committee, refinanced properties through Countrywide's "V.I.P." program in 2003 and 2004, according to company documents and emails and a former employee familiar with the loans.

In June 2008 Conde Nast Portfolio reported that several influential lawmakers and politicians, including Senate Banking Committee Chairman Christopher Dodd, Senate Budget Committee Chairman Kent Conrad, and Fannie Mae former CEO Jim Johnson, received favorable mortgage financing from Countrywide by virtue of being "Friends of Angelo."

Senator Dodd received a $75,000 reduction in mortgage payments from Countrywide at allegedly below-market rates on his Washington, D.C. and Connecticut homes. Michael Moore's Capitalism: A Love Story shows on film that this was actually over a million dollars of a sweet-heart mortgage deal.Dodd nonetheless called for stronger regulation of mortgage lenders and proposed that predatory lenders should face criminal charges.

Clinton Jones III, senior counsel of the House Financial Services Subcommittee on Housing and Community Opportunity, and "an adviser to ranking Republican members of Congress responsible for legislation of interest to the financial services industry and of importance to Countrywide." was given special treatment.

Jones is now state director for federal residential-mortgage bundler Freddie Mac. Alphonso Jackson, acting secretary of HUD at the time and long time friend and Texas neighbor of President Bush, received a discounted mortgage for himself and sought one for his daughter. "In 2003, using V.I.P. loans for nearly $1 million apiece, Franklin Raines, Fannie Mae’s chairman and C.E.O. from 1999 to 2004, twice refinanced his seven-bedroom home, which has a pool and movie theater."

Speaker of the House Nancy Pelosi's son, Paul Pelosi, Jr., also received a loan with Countrywide. Barbara Boxer, Adam H. Putnam, Richard C. Holbrooke, James E. Clyburn, and Donna Shalala are also among those with mortgages from Countrywide.

CBS News had obtained the following list of then-Fannie Mae employees whose names had been turned over to investigators as having received VIP loans from Countrywide:

Sandra Adams: Fannie Mae Account Associate
Nitirwork Armstrong: Fannie Mae Director
Gregg Ayres: Fannie Mae Customer Acct Manager
Jeffrey Baker: Fannie Mae Business Analyst
Ingrid Beckles: Freddie Mac VP Default Mgmt
Cherry Billings: Fannie Mae Asst to CEO
Christine Buckley: Fannie Mae Sr Assistant
Sharon Canavan: Fannie Mae Govt Relations/Lobbyist
Delynn Conley: Fannie Mae Underwriter
Carla Corpuz: Fannie Mae Senior Underwriter
Tanguy De Carbonnieres: Fannie Mae Legal Counsel
Bernard Deane: Fannie Mae Director
Mollie Dougherty: Fannie Mae Sr Business Manager
Roy Downey: Fannie Mae Director
Cynthia Fatica: Fannie Mae Legal Counsel
Jamie Gorelick: Fannie Mae Vice Chair
Lizbeth Grant: Fannie Mae Director Tec/Secondary Mkt
Greta Hamilton: Fannie Mae Manager/Home Loans
Lester Handy: Fannie Mae Consultant
James Johnson: Fannie Mae Chairman and CEO
Jack King: Fannie Mae Manager
Karen King: Fannie Mae Credit Risk manager
Gerald Langbauer: Freddie Mac VP Sales
Derek Lowe: Fannie Mae Technician/Home Loans
Mary Lee Moriarity: Fannie Mae Sr Underwriter Consult/Lending
Daniel Mudd: Fannie Mae Vice Chair and COO
Paulette Porter: Fannie Mae Sr Proj Mgr/Mtg Securities
Alan Quirion: Freddie Mac Director
John Radwanski: Freddie Mac Sr Port Director
Franklin Raines: Fannie Mae Chairman and CEO
Robin Ramsay: Fannie Mae Customer Acct Manager
Rebecca Rosena: Fannie Mae Credit Risk manager
Irwin Rosenstein: Fannie Mae Ass. General Counsel
Robert Sanborn: Fannie Mae Vice President
William Shirreffs: Fannie Mae Director
Joseph Silva: Fannie Mae Servicing Portfolio Manager
Donna Simpson: Fannie Mae Customer Acct Manager
Michelle Sorensen: Fannie Mae Sr Business An/Mortgage
Mary Ann Staley: Fannie Mae Marketing Dir
Deborah Kay: Tretler Fannie Mae VP Risk Management
Kirk Willison: Freddie Mac VP Trade Relations/Dir Industry Relations

David Yoon: Fannie Mae Acct Associate

Poor people are shot for looting. Businessmen and
their political allies who loot pay a fine and retire
to their beach house in the Hamptons.

A full bi-partisan cover up

On October 15, 2010, Mozilo reached a settlement with Securities and Exchange Commission, over securities fraud and insider trading charges. Mozilo agreed to pay $67.5 million in fines.

TRANSLATION: Just write a check and walk.

This fine represents a small fraction of Mozilo's estimated net worth of $600 million. Countrywide will pay $20 million of the $67.5 million penalty because of an indemnification agreement that was part of Mozillo's employment contract. The terms of the settlement allow Mr. Mozilo to avoid acknowledging any wrongdoing.

Republicans controlled Congress and the White House while all the crooked insanity was going on. No meaningful investigations were held. Then Democrats controlled Congress and the White House. No meaningful investigations were held. Now the Republicans are back in control the House. Again, Countrywide is swept under the rug.

In February 2011, the U.S. dropped its criminal investigation into the facts behind the Countrywide civil settlement.

And the looting of America goes on and on and on.

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Thomas Pinckney, Federalist

Commissioned as captain in the 1st South Carolina Regiment of the Continental Army. After seeing much action, he became an aide-de-camp to General Horatio Gates. He was captured by the British at the disastrous Battle of Camden in 1780. After recovering from his wounds, he was released in a prisoner exchange. In 1781 he fought under Lafayette in Virginia. Appointed by President George Washington to be the U.S. minister to Great Britain served as Envoy Extraordinary to Spain. The Federalist Party made him a candidate in the 1796 presidential election as the intended running-mate of John Adams. Served as Congressman and Governor of South Carolina. Served as a major general in the Army during the War of 1812.

Henry Lee III, Federalist

Major General "Light-Horse Harry" Lee fought at the battles of Paulus Hook, Guilford Court House, Eutaw Springs, Yorktown and the Whiskey Rebellion. Federalist Congressman from Virginia, Governor of Virginia. Father of Robert E. Lee. In 1812 Lee was attacked by a Jeffersonian mob of Democratic-Republicans while defending a Federalist newspaper from attack. Lee and the other Federalists were beaten and tortured by the mob over the next three hours. Lee was left partially blinded after hot wax was poured into his eyes. The men were left for dead. All were severely injured, and one Federalist, General James Lingan, died.

Frederick Frelinghuysen, Federalist

In the War of Independence he served in the New Jersey militia as an artillery captain, seeing action at Trenton and Monmouth. Attained the rank of colonel. Member of the Continental Congress. Served in the New Jersey General Assembly. Member of the New Jersey convention that ratified the United States Constitution in 1787. President George Washington appointed him as brigadier general in the United States Army for the 1790 campaign against the western Indians. Commissioned major general in the New Jersey militia in 1794, during the Whiskey Rebellion. Elected to the United States Senate.

Stephen Van Rensselaer, Federalist

Van Rensselaer served in the New York Assembly and Senate. He served as the Federalist Lt. Governor under John Jay. In 1786, Van Rensselaer was made a major of the militia. As a Major General in the War of 1812 he led an army in an invasion of Canada and fought at the Battle of Queenston Heights. In 1813 Van Rensselaer was the Federalist candidate for Governor of New York earning 48% of the vote. A shift of only 1,800 votes would have made him Governor. In 1822 he was elected to Congress as a Federalist serving until 1829.

WILLIAM PATERSON, Federalist

James Hillhouse, Federalist

Hillhouse served as captain in Governor's Foot Guards in the Revolutionary War. He was a member of the Connecticut House of Representatives, Congressman from Connecticut at-large, 1791–96, and a Federalist Party U. S. Senator from Connecticut, 1796–1810. He was the anti-slavery leader of the Congress in the early days of the Republic. After the Louisiana Purchase of 1803, Hillhouse fought to bar the importation of slaves into the Louisiana Territory. "I consider slavery as a serious evil," he proclaimed, "and wish to check it wherever I have authority." Two of Hillhouse's amendments restricting slavery passed the Congress and were signed into law.

Oliver Ellsworth, Federalist

In 1777 he was chosen as one of Connecticut's representatives in the Continental Congress. Served at the Constitutional Convention in Philadelphia as a delegate from Connecticut. On June 20, 1787 he proposed the use of the name the United States to identify the nation under the authority of the Constitution. United States Senator from Connecticut. Ellsworth was the principal exponent in the Senate of Alexander Hamilton's economic program. In 1796 Ellsworth was appointed by President George Washington to be Chief Justice of the United States. Served as United States Envoy Extraordinary to the Court of France. Ellsworth was a candidate in the 1796 United States Presidential election, receiving eleven votes in the electoral college.

Robert Goodloe Harper, Federalist

At the age of fifteen, Harper joined a volunteer corps of Cavalry and served in the American Revolutionary Army. Harper was elected as a Federalist Congressman from South Carolina (1795 - 1801). In 1798 at a dinner in Philadelphia honoring John Marshall, a group of U.S. Congressmen were discussing a recent demand made by the government of France. French vessels had been plundering US ships in a piratical manner. French foreign minister Talleyrand said the attacks would be stopped if the US paid him $250,000 and gave France 50,000 pounds sterling and a $100 million loan. As toasts were made, Harper sent his own defiant reply to the French with this toast: “Millions for defense but not one cent for tribute.” Harper served in the War of 1812, attaining the rank of major general. He moved to Maryland and was elected as a Federalist to the US Senate. He was an unsuccessful Federalist candidate for Vice President in the 1816 election. He also received one electoral vote for Vice President in the 1820 election.

Jacob Read, Federalist

Alexander Contee Hanson, Federalist

Member of the Maryland House of Delegates. Editor of the "Federal Republican", a Federalist Party newspaper in Baltimore. Four days after the beginning of the War of 1812 a mob of pro-war Democrat-Republicans destroyed his newspaper office. The paper moved to another building where Hanson was joined by a group of armed allies. When that building was besieged by another mob, Hanson and his group fired, killing two. Hanson and his group surrendered to the militia and were escorted to jail. That evening yet another mob stormed the jail. Hanson was beaten and left for dead. Hanson was elected as a Federalist to Congress in 1812 and 1814. In 1816 he was elected as a Federalist to represent Maryland in the U.S. Senate until his death in 1819 at the age of 33.

William Bingham, Federalist

As a merchant he brought full loads of munitions & guns for the war. Served as a diplomat for Congress to France. Bingham marshaled the Second Troop of Philadelphia Light Horse. He served in the Continental Congress, 1st Speaker of the Pennsylvania House of Representatives, State Senator, and US Senator. Federalists agreed to hold preliminary votings at the Bingham Estate before propositions were brought before Congress publicly, thus creating unanimity among party lines. Alexander Hamilton sought Bingham as his mentor in managing taxes, tariffs, and in constructing a national bank.

Ezekiel Whitman, Federalist

Whitman practiced law in New Gloucester, Maine and in Portland, Maine (both communities a district of Massachusetts until 1820). In 1808 Whitman was elected as a Federalist Congressman from Massachusetts and served one term. In 1816 he was again elected as a Federalist to the US House serving from 1817 to 1821. In 1819 he was a delegate to the convention that prepared the constitution which led to Maine's statehood. In 1820 he was elected as a Federalist Congressman from the new state of Maine serving until 1822. Chief Justice of the Maine Supreme Court from 1841 to 1848.

David Cobb, Federalist

Cobb studied medicine in Boston and practiced in Taunton, Massachusetts. He was a member of the Massachusetts Provincial Congress in 1775; lieutenant colonel of Jackson’s regiment in 1777 and 1778, serving in Rhode Island and New Jersey; was aide-de-camp on the staff of General George Washington; appointed major general of militia in 1786. Fought in the New York and New Jersey Campaign, the Battles of Springfield, Monmouth, Rhode Island and Shay's Rebellion. He served the Federalist Party as Lt. Governor of Massachusetts, President of the State Senate and Congressman.

Josiah Parker, Federalist

In 1775 Parker enlisted in the Continental Army. He was commissioned a major in the 5th Virginia Regiment in 1776 and became its colonel in 1778. His regiment served in Virginia under General Charles Lee and was transferred to George Washington. The regiment thereafter saw action at the Battles of Trenton, Princeton, Brandywine, Germantown, Monmouth and the Siege of Charleston. During Cornwallis's Virginia campaign in 1781, the notorious Colonel Tarleton ransacked his home. He was elected to the First US Congress from Virginia serving for twelve years.

William Stephens Smith, Federalist

Smith married Abigail "Nabby" Adams, the daughter of President John Adams, and so was a brother-in-law of President John Quincy Adams, and an uncle of Charles Francis Adams. Served in the Revolutionary Army as aide-de-camp to General John Sullivan. Fought in the Battle of Long Island, was wounded at Harlem Heights, Battle of White Plains, was promoted to lieutenant colonel at the Battle of Trenton, fought at the Battle of Monmouth and Newport. He was on the staff of General Lafayette, became an adjutant in the Corps of Light Infantry, then transferred to the staff of George Washington. Elected as a Federalist Congressman from New York.

Oliver Wolcott, Jr., Federalist

John Rutledge, Jr., Federalist

Rutledge served as Congressman from South Carolina. A passionate Federalist, he supported Aaron Burr against Jefferson, founding the Charleston Courier (predecessor of the Post and Courier) to support his causes. Joining the South Carolina Militia in 1799, Rutledge served as commander of the Twenty-eighth Regiment in the War of 1812. He subsequently commanded the Seventh Brigade from 1816 until his death. Rutledge's life was fraught with controversy. Catching his wife (mother to his nine children) in a "clandestine visit" with Dr. Horace Senter, Rutledge challenged him to a duel, fatally wounding the doctor.

John Sergeant, Federalist

Member of the Pennsylvania state house of representatives 1808-1810; elected as a Federalist to Congress and served from 1815, to 1823. Sergeant was a strong backer of Henry Clay's American System and the Second Bank of the United States, and even traveled to Europe to negotiate loans to the Bank. He was a strong opponent of slavery who voted against the Missouri Compromise. In 1826 he was an envoy to the Panama Congress. Elected to Congress as an Adams candidate 1827 to 1829. Failing re-election he became legal counsel to the Bank of the United States. Sergeant was the Vice Presidential running mate in Henry Clay's campaign on the National Republican ticket in 1832. Elected as a Whig to Congress serving from 1837 to 1841.

John Laurance, Federalist

Philip Barton Key, Federalist

Key had been a Loyalist in the American Revolution. He served in the Maryland Loyalists Battalion as a captain. Key fought with the British Army from 1777 to 1781, until he was captured by the Spanish in Pensacola, Florida with the rest of his battalion. After the war he served as Mayor of Annapolis & member of the Maryland House of Delegates. Appointed a Federal Judge by John Adams. He was a Counsel to Justice Samuel Chase during Chase's Jefferson ordered impeachment show-trial in 1805. Elected as a Federalist to Congress from Maryland (1807 - 1813). Francis Scott Key was his nephew.