It looks like US Senators Kent Conrad (D-N.D.) and Christopher J. Dodd (D-Conn.) have been cleared of any wrong doing in the mortgage scandal involving Angelo Mozilo and Countrywide Home Loans VIP loan program. The infamous tan CEO, Angelo Mozilo apparently had a special VIP mortgage program called “Friends of Angelo” where he gave killer deals on loans to his pals and people of influence.
Supposedly Dodd and Conrad broke Senate rules — which forbid senators from accepting loans not “generally available to the public.”
While the jury may still be out on that, it’s worth noting that the Senate Select Committee on Ethics has found “no substantial credible evidence” that Mr. Dodd or Mr. Conrad broke the applicable Senate rules — which forbid senators from accepting loans not “generally available to the public.”
It should restore constituents’ faith as well.”
Not so fast.
Let us not forget banking committee Chairman Dodd’s very costly lack of judgment: his insistence over several years that mortgage giants Fannie Mae and Freddie Mac were not in financial crisis and did not need major reform. I believe he thought that way because he is the largest recipient of campaign funds from the two firms. It was the housing crisis that mostly triggered our economic crisis.
Restore faith? I think not.
When you have friends in high places, you can get away with mortgage fraud. This is a perfict example of government cronyism.
The system is very broken to say the least.
Our whole society is built on a bunch of friends and families helping one another. Unfortunately the lines of politics, banking and business are now blurred and some would argue one and the same.
In the case of the people who live in glass houses, they just have friends in high places and richer families. Oh and they happen to be bankers, politicians and powerful business.