Will Grigg?s Liberty Minute

April 24, 2008

As CEO of the Federal National Mortgage Association, or Fannie Mae, Franklin D. Raines did a great deal to inflate the now-collapsed housing bubble.

In 2004, Raines and two of his henchmen overstated Fannie Mae?s earnings by $6.3 billion, thereby arranging huge bonuses for themselves just prior to leaving the company. In simple terms, they looted the company Enron-style, then let it collapse. Billions were spent to repair the damage.

Both Fannie Mae and its twin institution, the Federal Home Mortgage Loan Corporation, were created during the New Deal. These government-backed and subsidized entities own or guarantee 70 percent of American mortgage loans.

Rather than pursue Raines for his Enron-style corruption, the government has arranged a very comfortable settlement: He will give up a small portion of his ill-gotten gains and relinquish some now-worthless stock options.

Just as some banks are too big to fail, some crooks are apparently too big to prosecute.

Let us take back the liberty wherewith Christ has made us free.