Monday, August 16, 2010

Why is Washington ignoring its biggest corruption scandal?

By: Tom Fitton

Too few in Washington have been digging into the scandals behind the collapse of the “government-sponsored entities” (GSE's) Fannie Mae and Freddie Mac and their role in helping trigger the global financial crisis.

Their collapse has cost taxpayers $146 billion thus far. Freddie Mac sought an additional $1.8 billion in taxpayer support just last week. There is no end in sight, as the Obama administration, through executive fiat, has placed no upper limit on the taxpayer liability for these two monstrosities.

One reason official Washington isn’t too interested in Fannie and Freddie is the role political corruption played in their collapse in 2008. That's why Judicial Watch filed a Freedom of Information Act (FOIA) lawsuit against the Obama administration requesting documents related to campaign contributions made by Fannie and Freddie over the last several election cycles.

We figure since American taxpayers are on the hook for trillions of dollars, potentially including nearly $1 trillion alone for Fannie and Freddie, we deserve to know how and why this financial collapse occurred and who in Washington, D.C. is responsible.

The “transparent” Obama administration disagrees.

The Federal Housing Finance Agency (FHFA), the agency responsible for Fannie and Freddie, responded to our FOIA lawsuit by telling us that all of the documents we seek are not "FOIA-able!"


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