Okay, I’m going to have to eventually declare a Fannie & Freddie free zone here but I’m still floored by the way Washington works.
Bloody hell, Fannie and Freddie were created by the government but became top manipulators of the government.
“They tied up almost every lobbying firm in Washington, whether they used them or not, over the past several years,” said Joshua Rosner, a financial analyst with Graham Fisher & Co. and long-time critic of both companies.
Freddie Mac (FRE, Fortune 500) spent over $94.8-million on lobbyists since 1998, making it the nation’s 12th-largest lobbying client, while Fannie Mae (FNM, Fortune 500) bought $79.5-million of influence, the 20th biggest spender, according to the Center for Responsive Politics.
“They wanted to fend off regulation of their enterprises,” said Massie Ritsch of the Center.
Until recent months, Fannie Mae and Freddie Mac largely succeeded in that effort – functioning with relatively little oversight as they aggressively grew their portfolio of mortgages to try to increase earnings.
I guess I just have to learn to accept the fact that Washington is screwed up.