In July, when the "housing bill" was in Congress this was reported in WSJ and pretty much went unnoticed:
But an underreported part of this story is that Majority Leader Harry Reid refused to allow a vote on Republican Jim DeMint's amendment to bar political donations and lobbying by Fannie and its sibling, Freddie Mac.
This is a rare parliamentary move for a body in which even Senators in the minority party have long been able to force votes. The strong-arm play illustrates how politically powerful these government-sponsored enterprises remain even after going hat in hand to taxpayers. This has implications in the days ahead, because the Beltway battle now shifts to who will be the new regulator for the mortgage giants and how much political insulation he'll have from Fannie and Freddie pressure.
We believe in the right of individuals and businesses to lobby Congress. But with Fan and Fred now explicitly guaranteed by taxpayers, letting them ladle cash all over Washington amounts to using government-guaranteed profits to lobby for continued government protection. Congress sets the rules in favor of Fan and Fred, which then repay the Members with cash from their rigged profit stream. This is the government lobbying itself for more government.
Fannie Mae and Freddie Mac handed out $800,000 to U.S. House and Senate Members this election cycle.
Freddie Mac's foundation handed out $25 million to political groups, think tanks and other Beltway outfits in 2007 alone, more than any other foundation in the country
When you go in the voting booth in November, take your list with you.
This is dereliction of duty and I want names! I want heads to roll!!
DR
