Taxpayers have spent more than $160 million defending executives of Fannie Mae and Freddie Mac, infuriating lawmakers who want to know why taxpayers are footing the bill for heads of agencies that have already cost Americans at least $150 billion.
According to The New York Times, the bulk of those legal expenses -- $132 million -- went to pay for the defense of former top executives named in civil lawsuits accusing them of fraud and in various securities suits and government investigations into accounting irregularities that occurred years before the subprime lending crisis erupted.
Of the payments, $24 million went to defend former Fannie CEO Franklin Raines and two other executives.
Rep. Randy Neugebauer, R-Texas, chairman of the House Financial Services oversight subcommittee, told Fox News that he wants to know why the U.S. would defend executives who were fired from the lenders.
"The question I think that doesn't pass the smell test is: why are we paying the legal fees for former employees?" Neugebauer asked. "What kind of litigation is pending that would cause us to think we need to continue to put taxpayers' money in legal fees for people that actually got fired?"
Neugebauer said his committee wants to hold hearings on why the U.S. continued to pick up the tab for these defenses after the two lenders went into conservatorship.
The government took over Fannie and Freddie in 2008 after the housing bust that was, in part, attributed to disreputable accounting practices by the mortgage lenders, including years of inflated profit reports. In 2008, ex-Fannie chief Franklin Raines, who left the agency in 2004, personally paid back nearly $25 million in compensation after settling a lawsuit that claimed he had been improperly rewarded for the billions of dollars in profits that didn't exist.
On Monday, Edward J. DeMarco, acting director of the Federal Housing Finance Authority, which now oversees Fannie and Freddie, issued a statement defending the ongoing legal payments.
"I understand the frustration regarding the advancement of certain legal fees associated with ongoing litigation involving Fannie Mae and certain former employees. It is my responsibility to follow applicable federal and state law. Consequently, on the advice of counsel, I have concluded that the advancement of such fees is in the best interest of the conservatorship," DeMarco said.
The controversy comes just three weeks before the Obama administration submits its plans for overhauling Fannie and Freddie and getting taxpayers off the hook for them.
Fox Business' Peter Barnes contributed to this report.
GM to Invest Extra $540 Million in Mexico to Build Motors
MEXICO CITY (AFP) – US giant General Motors will invest $540 million to produce two low-emission motors in central Mexico, the company announced here Thursday, accompanied by President Felipe Calderon.
The latest project for GM in Mexico would create 500 direct and another 500 indirect jobs in its plant in Toluca, Calderon said.
GM has four plants in Mexico, and has invested some $5 billion here since 2006, Calderon said.
GM was left reeling by an industry slump when the global economic crisis hit. It received 49.5 billion dollars from the US Treasury and emerged from a bankruptcy restructuring in 2009.
It successfully returned to public trading last November by raising 23.1 billion dollars in an initial stock offering -- the largest in history.
katt1017: Has he gone missing again?I really think we need to think about having him microchipped if this sort of thing is going to keep happening.
It's just too stressful when he wanders off and can't be found. I keep getting worried that maybe he got hit by a car or got grabbed by some multilevel marketing cult.
Microchipped? Dang it, he's been wandering again and the neighbors are complaining. This is why we keep him inside the home and crated at night. Heck, I was thinking that we need to contact the local DNR to put a tracking collar on him. While they're at it, they can vaccinate him, neuter him, clean his ears out of all the gunk that's accumulated, and cut back his claws(nails) too.
If it's good enough for wildlife biologists and scientists, it's good enough for us.
ActractorguyTims Ford Lake, Tennessee USA2,089 posts
katt1017: Has he gone missing again?I really think we need to think about having him microchipped if this sort of thing is going to keep happening.
It's just too stressful when he wanders off and can't be found. I keep getting worried that maybe he got hit by a car or got grabbed by some multilevel marketing cult.
In Denmark about the only thing you could get run over with is a bike.
ActractorguyTims Ford Lake, Tennessee USA2,089 posts
ReaderOfSouls: Microchipped? Dang it, he's been wandering again and the neighbors are complaining. This is why we keep him inside the home and crated at night. Heck, I was thinking that we need to contact the local DNR to put a tracking collar on him. While they're at it, they can vaccinate him, neuter him, clean his ears out of all the gunk that's accumulated, and cut back his claws(nails) too.
If it's good enough for wildlife biologists and scientists, it's good enough for us.
It's just so stressful when he disappears. There are bad people out there who could take advantage of an innocent like him.
One day he could be walking down the street, he gets stopped by someone asking for directions and then BAM!!!!
Two weeks later he's dancing in a cage wearing a leather thong in a bar in Thailand and addicted to reefer.I just can't get that image out of my mind.
Just let us know you're OK Dude.Please?[/quote
Honey,
There's bad people who could take him and use him for scientific research. I can deal with him wearing the leather thong although I can't get that image to go away. Heavens, this is why he shouldn't be let out unsupervised. Now you know why we keep him crated when we're not home and while we're out. And this is why he's on the leash when he's let out.
I'm sure he'll be back along soon, licking our faces joyfully. wh
The Obama administration has become so concerned about the slowing pace of new drugs coming out of the pharmaceutical industry that officials have decided to start a billion-dollar government drug development center to help create medicines.
The new effort comes as many large drugmakers, unable to find enough new drugs, are paring back research. Promising discoveries in such illnesses as depression and Parkinson's that once would have led to clinical trials are instead going unexplored because companies have neither the will nor the resources to undertake the effort. Drug companies have typically spent twice as much on marketing as on research, a business model that is increasingly suspect.
The initial financing of the government's new drug center is small compared with the $45.8 billion that the industry estimates it invested in research in 2009. The cost of bringing a single drug to market can exceed $1 billion, according to some estimates.
Groundwork for drug firms
The National Institutes of Health has traditionally focused on basic research, such as describing the structure of proteins, leaving industry to create drugs using those compounds. But the drug industry's research productivity has been declining for 15 years, "and it certainly doesn't show any signs of turning upward," said Dr. Francis Collins, director of the institutes.
The job of the new center, to be called the National Center for Advancing Translational Sciences, is akin to that of a home seller who spruces up properties to attract buyers in a down market. In this case, the center will do as much research as it needs to do to attract drug company investment.
That means that in some cases, the center will use one of the institutes' four new robotic screeners to find chemicals that affect enzymes and might lead to the development of a drug or a cure. In other cases, the center might need to discover not only the right chemicals but also perform animal tests to ensure that they are safe and even start human trials to see whether they work. All of that has traditionally been done by drug companies, not the government.
"None of this is intended to be competitive with the private sector," Collins said. "The hope would be that any project that reaches the point of commercial appeal would be moved out of the academic support line and into the private sector."
Whether the government can succeed where private industry has failed is uncertain, officials say, but they say doing nothing is not an option.
The health and human services secretary, Kathleen Sebelius, sent a letter to Congress on Jan. 14 outlining the plan to open the new drug center by October — an unusually rapid turnaround for an idea first released with little fanfare in December.
Creating the center is a signature effort of Collins, who once directed the agency's Human Genome Project. Collins has been predicting for years that gene sequencing will lead to a vast array of new treatments, but years of effort and tens of billions of dollars in financing by drugmakers in gene-related research have largely been a bust.
As a result, industry has become far less willing to follow the latest genetic advances with expensive clinical trials. Rather than wait longer, Collins has decided the government can start the work itself.
"I am a little frustrated to see how many of the discoveries that do look as though they have therapeutic implications are waiting for the pharmaceutical industry to follow through with them," he said.
Atlas Is Shrugging! Doctors Stadler and Ferris at work at The State Science Institute! Bet it is called "A Move For Anti-Greed"!
Will .22 rimfires fall under new reporting controls? Will CA bullet button system be classified as detachable magazine?
The following was provided to me by a source who has proven reliable over the years. It was given to him by an ATF insider with the specific request to be forwarded to me. I am reproducing it here unedited and in its entirety as I received it:
It appears the new technical experts at ATF headquarters are making another technical determination in their new bid to classify firearms in a prohibitive way. We are all now aware that ATF will be requiring a multiple sales report an all rifles with a detachable magazine and a caliber larger than .220. The rationale for this is to stop assault type rifles going south of the border. It was not very well thought out in the planning stages. But when headquarters personnel make a plan it generally isn’t good and it is implemented and who cares. If ATF was so concerned with monitoring what types of firearms were being trafficked why were the firearms they want to stop not properly described? What are these boneheads really doing? All firearms owners know the .22 caliber rimfire is .224 in diameter. So if someone buys more than one Ruger 10/22 is a multiple sale form required? In accordance with the ATF plan it is. This plan also brought up the true ATF anti gun agenda which is what to do about the California bullet button. If you don’t know, gun owners in California cannot own an AR15 that accepts a detachable magazine. A well thought out design was created in which the magazine off an AR15 can only come out with a tool. The magazine release is replaced with a latch with an internal release. A tool called a bullet button is inserted into the replacement magazine release to drop the magazine. In California, the most restrictive state for gun owners, this was defined as not being a detachable magazine. Yet ATF is going to redefine this system. To further the anti gun agenda ATF is classifying the bullet button system as a detachable magazine. ATF has the intention of defining, what a tool is, how much time it takes in the use of the tool to remove the magazine, and the time to install the replacement magazine catch. The reason this is such critical issue is because the ATF experts were watching U Tube and found a young kid rapidly detaching the magazine. If this young kid could do it then it must be a new super device that all the drug cartels will be buying and replacing the normal magazine release on all of their AR type rifles. (Just sarcasm.) In this fervor to prohibit gun ownership by attacking any detachable magazine gun above .220 they never thought about receivers. Under the new reporting instructions AR15 receivers are not regulated, nor are completely assembled AR15 receivers without an upper receiver regulated. I am sure that ATF must know this which lends credence that this is just a new agenda for the ATF gun grabbers. Does anyone believe that if the ATF defines the bullet button as a detachable magazine federally that California will not redefine their law? Sorry California gun owners we really don’t care.[/quote
[*Specifications: Bullet diameter: .223; Neck diameter: .225; Base diameter: .225; Rim diameter: .275]
The business about .22s being caught up in the new oversight proposal is something I’ve been discussing with others, just the other day with fellow Gun Rights Examiners Liston Matthews and Kurt Hofmann, and earlier with a reader and correspondent who uses the screen name “W3”, himself a retired Texas peace officer.
Report threads that break rules, are offensive, or contain fighting. Staff may not be aware of the forum abuse, and cannot do anything about it unless you tell us about it. click to report forum abuse »
Taxpayers have spent more than $160 million defending executives of Fannie Mae and Freddie Mac, infuriating lawmakers who want to know why taxpayers are footing the bill for heads of agencies that have already cost Americans at least $150 billion.
According to The New York Times, the bulk of those legal expenses -- $132 million -- went to pay for the defense of former top executives named in civil lawsuits accusing them of fraud and in various securities suits and government investigations into accounting irregularities that occurred years before the subprime lending crisis erupted.
Of the payments, $24 million went to defend former Fannie CEO Franklin Raines and two other executives.
Rep. Randy Neugebauer, R-Texas, chairman of the House Financial Services oversight subcommittee, told Fox News that he wants to know why the U.S. would defend executives who were fired from the lenders.
"The question I think that doesn't pass the smell test is: why are we paying the legal fees for former employees?" Neugebauer asked. "What kind of litigation is pending that would cause us to think we need to continue to put taxpayers' money in legal fees for people that actually got fired?"
Neugebauer said his committee wants to hold hearings on why the U.S. continued to pick up the tab for these defenses after the two lenders went into conservatorship.
The government took over Fannie and Freddie in 2008 after the housing bust that was, in part, attributed to disreputable accounting practices by the mortgage lenders, including years of inflated profit reports. In 2008, ex-Fannie chief Franklin Raines, who left the agency in 2004, personally paid back nearly $25 million in compensation after settling a lawsuit that claimed he had been improperly rewarded for the billions of dollars in profits that didn't exist.
On Monday, Edward J. DeMarco, acting director of the Federal Housing Finance Authority, which now oversees Fannie and Freddie, issued a statement defending the ongoing legal payments.
"I understand the frustration regarding the advancement of certain legal fees associated with ongoing litigation involving Fannie Mae and certain former employees. It is my responsibility to follow applicable federal and state law. Consequently, on the advice of counsel, I have concluded that the advancement of such fees is in the best interest of the conservatorship," DeMarco said.
The controversy comes just three weeks before the Obama administration submits its plans for overhauling Fannie and Freddie and getting taxpayers off the hook for them.
Fox Business' Peter Barnes contributed to this report.