Foxes in the Fannie Mae Hen House feasting on Tax Payer funds
Fannie Mae Board Members are often well connected finance industry insiders feasting on tax payer funds instead of looking out for interest of the US Tax Payer. There is so much coverage of Fannie Mae today in the newspapers and the airwaves and no one examines the links between the Fannie Mae collapse and the current Board of Directors and the foxes that are feasting on the Fannie Mae carcass.
One Fox in the Fannie Mae Hen House is Jonathan Plutzik, who joined the Board in 2009. Its hard for even a cynic like me to believe that Mr Plutzik is directly related to the person that headed up the CDO Division of Bear Stearns, the group responsible for the Bear Stearns collapse. It was the liquidation of Bearn Stearns CDOs was the beginning of the financial collapse. I was surprised to discover that Mr Plutzik is the husband of Lesley Goldwasser, who according to Businessweek Ms Goldwasser “established the CDO business at Bear Stearns and was also co-head of the Asset-Backed Securities group” until 2008. Ms Goldwasser headed the very group that assembled the CDO portfolio now on the New York Federal Reserve books and now known as Maiden Lane I. In a world full of Financial executives a person directly related to a key executive responsible for the collapse of Bear Stears was the last resort for a position on the Fannie Mae Board with a salary of $176,000.
Another interesting Fox in the Fannie Mae Hen House is Frederick ‘Bart’ Harvey. Mr Harvey was the CEO of Enterprise Community Partners, a non-profit whose mission is to provide Low Income Mortgages with financing provided by Fannie Mae and Freddie Mac and other government programs. The very year Mr Harvey retired from is $227,000 a year position with Enterprise, he began his term on the Fannie Mae Board with a salary of $180,000. Examining Enterprise Community Partners more closely and you discover that this affordable Housing Non-profit has a for-profit subsidiary called Enterprise Investment Fund. I don't understand why an affordable housing non-profit would need a for-profit subsidiary. When you review the Board of Directors for Enterprise Community Investment (the for-profit subsidiary) you’ll discover a current Freddie Mac Vice President and two recently retired Fannie Mae Vice Presidents. So, we have Fannie Mae and Freddie Mac executives working for a Company that can only exist with of Fannie and Freddie financing.
Crony Capitalism will keep Fannie Mae alive, there are far too many well connected individuals profiting from Fannie Mae and Freddie for either to ever be closed for business.
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