Rahm Emanuel's profitable stint at mortgage giant

[I AM NOT THAT GUY 5,715]

Before its portfolio of bad loans helped trigger the current housing crisis, mortgage giant Freddie Mac was the focus of a major accounting scandal that led to a management shake-up, huge fines and scalding condemnation of passive directors by a top federal regulator.

One of those allegedly asleep-at-the-switch board members was Chicago's Rahm Emanuel—now chief of staff to President Barack Obama—who made at least $320,000 for a 14-month stint at Freddie Mac that required little effort.

As gatekeeper to Obama, Emanuel now plays a critical role in addressing the nation's mortgage woes and fulfilling the administration's pledge to impose responsibility on the financial world.

Emanuel's Freddie Mac involvement has been a prominent point on his political résumé, and his healthy payday from the firm has been no secret either. What is less known, however, is how little he apparently did for his money and how he benefited from the kind of cozy ties between Washington and Wall Street that have fueled the nation's current economic mess.

Though just 49, Emanuel is a veteran Democratic strategist and fundraiser who served three terms in the U.S. House after helping elect Mayor Richard Daley and former President Bill Clinton. The Freddie Mac money was a small piece of the $16 million he made in a three-year interlude as an investment banker a decade ago.

In business as in politics, Emanuel has cultivated an aggressive, take-charge reputation that made him rich and propelled his rise to the front of the national stage. But buried deep in corporate and government documents on the Freddie Mac scandal is a little-known and very different story involving Emanuel.

He was named to the Freddie Mac board in February 2000 by Clinton, whom Emanuel had served as White House political director and vocal defender during the Whitewater and Monica Lewinsky scandals.

The board met no more than six times a year. Unlike most fellow directors, Emanuel was not assigned to any of the board's working committees, according to company proxy statements. Immediately upon joining the board, Emanuel and other new directors qualified for $380,000 in stock and options plus a $20,000 annual fee, records indicate.

On Emanuel's watch, the board was told by executives of a plan to use accounting tricks to mislead shareholders about outsize profits the government-chartered firm was then reaping from risky investments. The goal was to push earnings onto the books in future years, ensuring that Freddie Mac would appear profitable on paper for years to come and helping maximize annual bonuses for company brass.

The accounting scandal wasn't the only one that brewed during Emanuel's tenure.

During his brief time on the board, the company hatched a plan to enhance its political muscle. That scheme, also reviewed by the board, led to a record $3.8 million fine from the Federal Election Commission for illegally using corporate resources to host fundraisers for politicians. Emanuel was the beneficiary of one of those parties after he left the board and ran in 2002 for a seat in Congress from the North Side of Chicago.

(more)

http://www.chicagotribune.com/news/politic...0,5682373.story

[justashooter 430]

so the news can't focus on palin's daughter anymore, and they have to stoop to this?

[I'm Gone 60]

What about this?

The chief-of-staff himself volunteered to serve in Israel's army during the first Gulf War of 1991.

[I AM NOT THAT GUY 5,715]

What about this?

The chief-of-staff himself volunteered to serve in Israel's army during the first Gulf War of 1991.

Really? I did not know that. That would be pretty ballsy.

[I'm Gone 60]

What about this?

The chief-of-staff himself volunteered to serve in Israel's army during the first Gulf War of 1991.

Really? I did not know that. That would be pretty ballsy.

http://news.bbc.co.uk/2/hi/americas/7702408.stm

So you thing Obama will have an even handed policy on the Middle East? LOL

[I AM NOT THAT GUY 5,715]

What about this?

The chief-of-staff himself volunteered to serve in Israel's army during the first Gulf War of 1991.

Really? I did not know that. That would be pretty ballsy.

http://news.bbc.co.uk/2/hi/americas/7702408.stm

So you thing Obama will have an even handed policy on the Middle East? LOL

The prospective chief-of-staff himself volunteered to serve in Israel's army during the first Gulf War of 1991 - rust-proofing brakes in northern military bases, Israeli media reports.

You have to respect a man who served.

No matter who serves in the White House, they would find it hard to ignore a powerful lobby like AIPAC.

[HAL 9000 96]

New topic:

Rahm farted.

Discuss.