Fausta’s Blog

President elect Obama has appointed Rahm Emanuel as his chief of staff.
Emanuel Was Director Of Freddie Mac During Scandal
New Obama Chief of Staff, Others on Board, Missed “Red Flags” of Alleged Fraud Scheme

President-elect Barack Obama’s newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot “red flags,” according to government reports reviewed by ABCNews.com.

President-elect Barack Obama’s newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot “red flags,” according to government reports reviewed by ABCNews.com. According to a complaint later filed by the Securities and Exchange Commission, Freddie Mac, known formally as the Federal Home Loan Mortgage Corporation, misreported profits by billions of dollars in order to deceive investors between the years 2000 and 2002.

Emanuel was not named in the SEC complaint (click here to read) but the entire board was later accused by the Office of Federal Housing Enterprise Oversight (OFHEO) (click here to read) of having “failed in its duty to follow up on matters brought to its attention.”

Emanuel, who was appointed head of Freddie Mac by Bill Clinton, served for 13 months right during the scandal.

Another appointee, Jennifer Granholm, led Michigan into recession well before the rest of the nation.

Let’s hope he doesn’t complete the picture and name Jon Corzine Treasury Secretary. Corzine’s doing a mighty fine job of driving the NJ ship to economic disaster.

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This entry was posted on Friday, November 7th, 2008 at 2:37 pm and is filed under Barack Obama, Democrats, politics. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.