Fannie And Freddie's Corruption
CBS
Transcript
whenever fannie and freddie found themselves in trouble they would invariably point the finger to a government mandate that dates back to the depression the need to provide affordable housing to every american to help make that happen the government granted them privileged status including guaranteed lines of credit exemption from state and local taxes and limited oversight you'd have people in congress that would make it very clear that they wanted nothing to touch fannie and freddie former congressman jim leach says he tried to hold fannie and freddie's financial fee to the fire with little or no success at one point in time they had more lobbyists than their employee than i think any institution ever in fact cbs news has learned fannie and freddie now boasts nearly 150 lobbyists spending almost 175 million dollars combined over the last decade alone more than pharmaceutical giant pfizer and defense contractor boeing the mortgage giant stole out two million dollars more over the last four years to political action committees money used as a weapon to fend off regulation that would have required them to maintain deeper financial reserves to act as a cushion to the kind of risky loans that led to their undoing fannie and freddie were thuggish the people who worked there misled other people they used political power in an ugly way a few years ago fannie was fined nearly 400 million dollars after an investigation revealed it overstated earnings by 10 billion dollars to maximize executive pay that cost former ceo franklin reigns his job but not 65 of the 90 million dollars he received in bonuses and compensation now the ceos who presided over the demise of fannie and freddie are out the door as well walking away with some 30 million dollars while every american it seems is paying the price armin katay and cbs news new york