December 05, 2007

Pretty simple question: When do the Feds raid Fannie Mae's (and their auditor's) offices and start arresting people?

Just asking.

I figure it's gotta be soon.

That'll be a fun day.

America just loves a good frog-march.



Not Soon enough !!!!!

shtove said...

Did Lay and co do the perp walk before or after Enron was forced under?

Maybe these shows are only put on when the public has already grasped that it's all over.

borkafatty said...

Man i tell you looking at that pic, what a price we are going to be paying for Enron..

Anonymous said...

Saw Mozilla on TV yesterday. He's not looking as vibrantly orange as usual. I guess flushing those toxic loans out of the sytem really helped his liver.

amigauser said...


Rich and well connected companies will never be at risk of doing the perp walk.

If their is even the slightest chance of them getting into trouble, politicians will be bribed, markets rigged and favours will be called in.

Keith, why no mention of the effect of low interest rates are having on the housing market?

Anonymous said...

Probably never gonna happen.

mortgagesmackdown said...


Monday, December 03, 2007
Crisp mansion repossessed after failing to sell at auction

From the Bakersfield Californian:

Crisp mansion repossessed after failing to sell at auction
By VANESSA GREGORY, Californian staff writer

After two delays, real estate agent David Crisp’s lavish Seven Oaks mansion has been repossessed by the lender.

The home was up for public auction on the steps of City Hall Monday, with an opening bid of $1.8 million.

With no bidders ready to swallow that price, the 6,666-square-foot home at 10509 New Quay Court went back to the lender, identified in county records as Irvine-based X Bancorp.

Crisp defaulted on $2 million borrowed against the home earlier this year.

Crisp could not be reached immediately for comment Monday.

The home, located in one of the city’s most exclusive gated communities, was among 13 locations searched by FBI and IRS agents in September.

Crisp and his former business partner, Carl Cole, are under investigation by the FBI. No charges have been filed.

Posted by Bakersfield Bubble at 1:26 PM

dong beast said...

It was either freddie or fannie who slashed their dividend by 30% after the cloes today.These gse's are run by corrupt politicians.I'm sure they will arrest some people soon after the stocks tank and somebody important loses their ass.

consultant said...


You took the words right out of my mouth.

Anonymous said...

yeh but where did the money go? as far as it goes, I don't know what the capitalization was for enron, but you can bet, that these chumps didn't get that much of the loot. they were just convenient useful idiots. who got that money and where did it go? they never go after the big fish. they only get the little ones. ken lay was just a pawn in the game. and so it will be again with this scheme that is now unfolding. the big fish will get away and the little fish will get caught and that is called american justice.

Anonymous said...

its like the war on drugs. we fight this war and spend untold amounts of money on it, yet nothing seems to change. why is that? because the same people who are supposedly fighting the war on drugs, are the same people who are bringing the drugs in and/or protecting the big fish who finance the drug empires. many of the old fortunes of the northeastern united states, were made from the opium trade in china.

Anonymous said...

I EXPECT arrests. Think of this. The government approves a freeze on mortgage interest for the people facing adjustible mortgage problems or eventual eviction. In order to "qualify" for this they have to submit paperwork with statements on earnings, etc. Perhaps information on how they acquired their loans, the procedures, etc.
What better way for the government to get prosecution information? IRS? It is not just possible but probable that they will use this application process as future indictment evidence.

boston observer said...

Accounting fraud has been going on at Fannie for years yet Clinton stooge Franklin Raines was allowed to walk away with close to $100M.

A better question is when will the taxpayers be called upon to bail FNM out and how much will it cost.

Anonymous said...

Keith, Even you can't be stupid enough to think that anyone of any imporatance is going to jail. The crooks own the gubbermint. Surely you are just trolling for comments.

Anonymous said...

Nice picture of Kenneth Lay (currently dead?.

The Feds will need a bus to transport all the scoundrels this time.

They could borrow a few buses from ICE. They do not seem to be using them much.

Adios Senior Real Estate Scumbag.
Let me introduce you to your new WIFE, his name is Big Joe...

Anonymous said...

When some people here *cough* Keith *cough* issue a mea culpa thread about being sooooo wrong on all the previous Iran bogeyman Kool-Aid threads.

A new assessment issued four years ago, from 16 intelligence agencies, report that Iran wasn't pursuing nuclear weapons. I remember well when all the GOP whores and dumb warmongers here were drooling for another invasion.

It doesn't matter because you geniuses keep bending over for this administration. Karl Rove, Giuliani, and Cheney love dumb people like you.

Oh, and for all the Republican Fascists™ on the GOP payroll, who work the blogs out of Washington as Bushiebots, no need for reply. Your words are not taken into consideration by people with a working brain and who still hold principles. Go do something else, like being a pervert in public bathrooms at airports.

Stuck in So Pa said...

Not gonna happen. They are too big to be allowed to fail. Even the hint of a serious inquiry into their books could start the ball rolling downhill.

Eric said...

Even better when everything the executives stole... I mean earned is taken from them and their family. Not even death will save their ill begotten millions.

Princess Mononoke said...

I would LOVE nothing more than to see these A-hole crooks get NAILED... Everyone at the highest possible level! JUSTICE 4 all.

They led the way and the sheeple followed...

I have absolutely NO sympathy reserved for any of them!!! Just like the Enron gang and Worldcom gang etc. and NO Country Club prison for them either!

Anonymous said...


Watch what happens to a BIG

financial on December 20th

a.m. hours eastern time!


k.w. - southern ca. said...

I'm not sure that will ever happen ... they spent too much time enriching one another.

Tex said...

I think Fannie Mae will fake its own death as Ken Lay did. Who would want to go to trial and face prison time when they can pay a doctor for a death certificate, have a burial for a coffin full of sandbags, and then live the good life in some foreign country where no one knows who you are.

Toby said...

They did this three years ago. Arrested the CEO Raines, fired and fined the auditors and capped FNMA's (and FHLMC)portfolio because of the accounting fraud.

FNMA is not a lender. It is a conduit that enjoys implied government backing. No one, and I repeat, no one has lost money investing in FNMA backed mortgages. FNMA has nothing to do with the toxic CDOs. While FNMA the public company may take a beating (their stock is way down), their liquidity is more than adequate to survive.

The problem is that FNMA can only do so much to aleviate the credit crunch given the aformentioned portfolio caps.

Anonymous said...

Think of this. The government approves a freeze on mortgage interest for the people facing adjustible mortgage problems or eventual eviction. In order to "qualify" for this they have to submit paperwork with statements on earnings, etc. Perhaps information on how they acquired their loans, the procedures, etc.

Aw, come on. How many people are gonna apply for this abatement when they know they lied on the paperwork? I predict this whole bail-out is gonna be the biggest party ever thrown where nobody shows up. How can they????

Anonymous said...


Nice bracelets Ken,

What ya gonna do next?

Oh yeah!



Anonymous said...

Fannie Mae had about $40 billion in stockholder value/retained earnings as of the end of 06. Lost 1.5B last quarter but acccelerating.

When they go bankrupt and the government needs to bail them out, then you'll see some action. That's going to take awhile though. Probably but a year but worth the wait.

Anonymous said...

OT, this influx of new HP readers tells us that something serious is going on out there in the market. I haven't seen so many new "faces" like this since 2006. Sign of times. Am I the only HP old timer noticing this new crowd?

abb said...

The Feds? Why would Feds arrest themselves?

The only way these criminals will be prosecuted is if the public wakes up and does it themselves.

Anonymous said...

OMG I would LOVE Fannie and Freddie to be raided and busted up!

Homes were 2 X income before these rapists came on the scene.

GET RID OF THEM!! They are bleeding the public dry. TOTAL CROOKS!