(October 13, 2009 - Photo by Alex Wong/Getty Images North America)
You would have a difficult time finding even one American so naive, so ignorant, or so shut off from reality to believe that Washington is anything short of overrun with rampant self-interest, deceit, fraud, and corruption; so it is rarely surprising to anyone when illegal or unconscionable acts are revealed from therein. I will optimistically assume that this is why there have been so few reports of an ongoing Congressional investigation into bribery and coercion by a major player in the market collapse of last year.
Congressman Darrell Issa (R-CA) is among those aiming to shed light on the matter by urging Congress to expose the level of corruption that permeated the Legislative Branch in the months or even years leading up to the “collapse.” He and other members of the House Oversight and Reform Committee have just successfully passed measures which will issue orders of subpoenas for documents related to the mortgage giant Countrywide and their dealings with Congress and its staff members.
Speaking on Fox News this morning, Congressman Issa was highly critical of the corporations tactics and stated that he believed that Countrywide offered better than market mortgage packages to Congressional staffers in exchange for favorable treatment in legislation. Congressman Issa discussed the reality that is the legislative process. More often than not, the actual legislation that is written by our elected officials is penned by their staffers. Essentially, while bribing Congressmen and Senators may be out of the question for a host of reasons, it is far easier and perhaps even more effective to bribe their staff.
Issa was also particularly critical of the Senate Budget Committee who also looked into this matter, and said that its failure to act demonstrates only that the House simply has “higher standards.” It should be noted that he believes that the corruption extends far beyond the halls of Congress. He intimated that Countrywide may have had its hands in convincing Fannie and Freddie to take on $6-12 trillion in toxic mortgages and abandon their previously conservative trajectory as well. He also added that many mayors and governors may have also been corrupted by the mortgage giant.
Congressman Issa spoke highly of the Congressional Democrats who broke party ranks in opposition to the Chairman of the Oversight Committee and the Speaker of the House in voting to order the subpoenas.
The subpoenas will hopefully expose potential illegalities in the issuance of beneficial and well below market mortgages to a variety of political figures. Issa estimated that about $20-30 million worth of transactions are at the heart of what the subpoenas aim to look into. The bulk of this amount is attributed to loan benefits ranging from 1-2 point reductions on mortgages and waivers of closing costs for applicants. He admits that while the total sum is not earth shattering, the individual benefit was substantial and could have led to a culture of corruption that must be revealed.
Congressman Issa calling for Subpoenas to be issued to investigate Countrywide
Caving to months of pressure from congressional Republicans, the chairman of the House oversight committee agreed Friday to subpoena documents from Countrywide Financial Corporation about its VIP loan program that offered special mortgages to members of Congress and other influential figures.
Sens. Chris Dodd, D-Conn., and Kent Conrad, D-N.D., both received loans from the so-called “Friends of Angelo” program, a reference to the company’s former CEO Angelo Mozilo, now charged with insider trading and securities fraud by the SEC.
Rep. Darrell Issa of California, the committee’s ranking Republican member, spearheaded the call for subpoenas from Bank of America, which bought Countrywide last year. He said a congressional investigation was needed into what he called “an attempt to bribe” members of Congress.
“Countrywide orchestrated a deliberate and calculated effort to buy powerful friends for the purpose of using these relationships to manipulate public policy and further their bottom line to the detriment to the American taxpayers,” said Issa in a statement Friday.
The subpoenas ordered by the chairman, Rep. Edolphus Towns, D-N.Y., capped a tense week in the House Oversight and Government Reform Committee, during which Towns cancelled a committee meeting where Republican members were planning to call for a vote on the subpoenas and later locked Republicans out of the committee chambers.
Towns has acknowledged that he received a home loan from Countrywide, but said he did not get favorable terms from the lender. Countrywide waived normal company rules for VIP’s, eliminating lender fees and granting the lowest possible interest rates in some cases.
“The documents and records we have subpoenaed will expose the inner-workings of Countrywide and how this program came to be and was executed,” said Issa.
“We will uncover the true motive and intent behind Countrywide’s actions and learn the full size and scope of how this program influenced policymakers and their policy decisions.”
Weed’em all out. Congress is dirty and there hands are caught in the cookie jar. I would like an MVP mortgage. Do I have to be a congressman to get one?
corruption, bailouts, misconduct? Maybe we should have a czar cut their pay as well?
I could go for that.
I would like to see this extended to the Justice Department. Why are they not involved here? It has time to probe the previous administration but it does not have time to investigate bribery? Holder is a puppet of the left. He should be on top of this not Congress.
I appreciate Congressman Issa for doing this, but I believe that even subpoenas being issued will fail to uncover the real corruption here. Countrywide was a big company with lots of cover men working for a long time without being expose. I think they covered their tracks by now.
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