Newt Gingrich and Fannie Mae

Loss ridden Fannie Mae also known as (Federal National Mortgage Association) – FNMA – operating since 2008 under a conservatorship of the FHFA – Federal Housing Finance Agency – gave former Speaker Newt Gingrich $1.5 million in consulting fees.

Under normal circumstances, that would be perfectly alright, however in this case, Fannie Mae is basically subsidized by the public, and has received bail-out funds for quite a while. Fannie Mae, formed during the Great Depression of 1938, is a government sponsored agency with intend to allow borrowers to re-invest their assets through mortgage-backed securities .

Fannie Mae revenue records, show the agency lost $14.449 billion through first nine months of 2011. The agency also lost $14.87 billion in the January through September period of 2010. What should bring the public onto the barricades however, is the fact, Fannie Mae and Freddie Mac received $170 billion in taxpayer bail-out funds since 2007 and just last week asked law makers for an additional $13 billion of taxpayer bail-out money.

By asking Congress for more bail-out funds, the public also learned Fannie Mae and Freddie Mac paid a dozen executives bonuses totaling $35 million in taxpayer monies and now comes word, where Fannie Mae paid N. Gingrich consulting fees worth $1.5 million.

Shut them down, taxpayer money does not flow out of faucets, and if Gingrich had any ethics he would return the fees, knowing full well taxpayers money paid for this. However, he has not done so, and while we crow about Obama having increased the national debt by $5 trillion in just 3 years, we should consider Gingrich and should he win the Presidency, how much more he would spend, when he has no ethics accepting taxpayer paid consulting fees?


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