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Fraud at Fannie and Freddie or Bad Management?

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  • Description

    FBN’s Gerri Willis on the potential fraud at Fannie Mae and Freddie Mac.

  • Duration 3:33
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Fraud is a funny thing sometimes people are still busy lining their pockets he never occurs to anybody that they might get caught.

It's a slippery slope for even the most highly credentialed of us may -- is specially for them.

And so it is with Fannie Mae and Freddie Mac the one time mortgage market leaders but they aren't leaders anymore there essentially wards of the state.

We've given them a 183.

Billion taxpayer dollars to pay their debt and guess what they're still broke they still come back to us for more money.

And there's been -- debate raging out there about whether the mortgage market and Freddie and Fannie is role in it was just bad management -- fraud.

Today the Securities and Exchange Commission answer that question.

The agency is charging that six of the company's executives broke the law by approving financial statements that were essentially lives.

Financial statements that -- the two companies look healthy when they were actually poised at the brink of oblivion.

The -- question were well known experienced executives with impressive resonates.

Like Richard Syron.

The CEO of Freddie Mac he ran the American Stock Exchange for five years and worked at the Boston Federal Reserve.

And then there's Daniel Mudd the CEO of Fannie Mae -- within an officer in the Marine Corps and CEO of GE -- Japan operations.

He also ran a big investment company called fortress the job -- got after running fanning.

But I want the only public figures making out like bandits from fan and Fred.

GOP presidential candidate Newt Gingrich reportedly -- about one point six million dollars working for Freddie.

Here's new its rival Michelle Bachmann beating him up -- last night's debate over at.

I am shocked.

Listening to the former speaker of the house because he's defending that continuing practice of Freddie Mac and Fannie Mae they -- epicenter of the mortgage financial meltdown.

I was trying to see these two entities.

Put into bankruptcy.

Because they've frankly need to go away when the speaker had his hand out he was taking one point six million dollars.

To influence senior Republicans.

To keep this scam going they need to be shut down not built up.

-- answer is that's just not true.

What she just say this factually not true I never lobbied under any circumstance in fact I tried to help defeat the housing act.

What after the debate that we had last week -- a fact came out and said that everything that I said was true.

And that evidence is that speaker Gingrich took one point six million dollars the bidding.

Was to keep this grandiose scam of Freddie Mac going.

That's -- that is something that our nominee can't stand for.

Look at the end of the day I'm not really sure it matters whether -- was actually lobbying or not.

Just the fact of this pay is enough to show where -- loyalties lie.

When -- financial institution gets two million dollars to a retired politician.

Well it sure -- because of its trading skills.

-- and sirens pay similarly impressive look at this 161000000.

And seventeen million respectively.

Men who are highly credentialed.

Men who are respected.

-- -- corrupted by the big pot of cash being dangled in front of them.

I said it before and I'll say it again it's time to shut down these two mortgage giants before they do more harm.

But also it's time to watch for the next government kitty that could turn into a big fat -- I think the federal government's Green energy loan program comes to mind.

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