And what was their responsibility? Certainly their negligence allowed the fraudulent scamming hedge funds now known as Phoney and Fraudie to blossom like a mushroom cloud.
Freddie, Fannie Scam Hidden in Broad Daylight: Jonathan Weil [Bloomie]
“There were lots of gatekeepers who could have stopped this sooner and chose not to. Freddie and Fannie had boards with outside directors and audit committees, though the evidence that they did their jobs is scant.
(They got paid to do nothing, too- the typical gummint job!)
“Freddie’s auditor, PricewaterhouseCoopers LLP, could have stopped it, and didn’t. The same is true of Fannie’s auditor, Deloitte & Touche LLP.
“The Securities and Exchange Commission’s chairman, Christopher Cox, had other priorities. He was too busy this summer trying to prop up the companies’ stock prices by chasing short sellers away from their shares.
“James Lockhart, the director of the Federal Housing Finance Agency, kept telling the public this summer that Fannie and Freddie were adequately capitalized. He must have known this was a joke, assuming he had bothered to read their quarterly reports.
“All the while, Ben Bernanke at the Federal Reserve and Hank Paulson at Treasury offered the same warm assurances about the companies’ capital. They surely knew better, too.”
In other news…
The “ownership society” was a corrupted idea from the start.
[Dr. Housing Bubble]
Lehman might soon need a life preserver.
One smug bastard.
“The whole problem with the world is that fools and fanatics are always so certain of themselves, yet wiser people so full of doubts.”
– Bertrand Russell