First, she erects the "Wall" between the FBI and ALL Intelligence agencies that directly prevented the sharing of information that might have prevented 9/11.As an Asst. Attorney General under Janet Reno, Gorelick authored the infamous 1995 Memo that went "beyond what the law ( FISA ) required".
The she served on the 9/11 Commission and worked overtime protecting the Clinton legacy and her own ass. Where was she in between ? Vice Chairman of Fannie Mae. She and Franklin Raines ( Clinton's former Director of OMB ) served under Jim Johnson who Obama had to dump as one of his Vice- Presidential "searchers". Raines succeeded Johnson who was forced out when serious Enron type accounting fraud was uncovered at Fannie Mae. The worst of these was failing to take $200 million in losses because it would have reduced performance bonuses paid to him and his fellow directors including Raines and Gorelick.
Raines went from Vice-Chairman to Chairman and Gorelick succeeded him as Vice Chairman. They presided over a $6.3 BILLION accounting scandal. Raines was charged by Federal regulators with manipulating Fannie Mae's earnings and he paid a $2 million dollar fine and forfeited $ 22.7 million in stock and bonuses. Well actually, he did not pay anything out of his own pocket. It was all covered by Director's and Officers Insurance. AIG is the biggest underwriter of D & O Insurance in the U.S. During this tme, not only did Gorelick go along with all the accounting irregularities but she pocketed millions in salary and over $ 6 million in bonuses in just one year.
Fannie Mae was founded by FDR to provide mortgages. It was the least he could do after he and the Federal Reserve presided over the collapse of the U.S. banking system. With some help from Hoover although he tried a Federal rescue but was the lamest of lame ducks after his electoral defeat in November 1932.
It was eventually spun off into a semi-private corporation and sold stock and issued bonds but retained its Federal charter. For decades it was one of the safest investments possible and even got through the S & L fiasco relatively unscathed. The changes that led to its eventual takeover started under Clinton. Under Clinton new regs were promulgated that loosened Fannie Mae lending requirements. Previously, it literally cherry picked which mortgages to buy and fund but to promote more "minority home ownership" its regs and requirements were dramatically loosened.
It also started its own PAC and soon developed into a major lobbying force in Washington. From 1989 to 2008, 16 of its top 25 recipients of campaign cash were Dems. ; 9 were Reps. The top four are Chris Dodd - $133,900 ; John Kerry $111,000 ; BARACK OBAMA $105, 849 and HILLARY CLINTON $75,550. Btw, McCain is nowhere on the list.
After the Johnson scandal came to light there was a movement led by conservative Republicans to phase out Fannie Mae and its sister corporation Freddy Mac. Not only did the Dems. led by Dodd, Chuck Schumer and Barney Frank fight off the proposed phase out of the two corporations BUT they also killed every attempt to impose increased regulation and improved oversight.
Ms. Gorelick was directly involved in two of the biggest train wrecks in our history.
Its obvious why the Dems are NOT screaming for hearings and investigations a la Enron. The trail leads right to THEIR doorstep and its THEIR presidential candidate who' ll get covered with plenty of mud.





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