U.S. Legislators That Cater to the Financial Industry are Receiving Sweetheart Loans

[AuH20]

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In evaluating lawmakers from 2004 to 2011, the researchers found that finance committee members’ personal borrowing tended to jump in the first year they were appointed to the panels — a trend not seen for other lawmakers who were given seats on other powerful committees. Similarly, the data show that upon joining the finance panels, lawmakers tended to be given 32 percent more time — or on average 4 and a half years more — to pay back those new debts than loans they previously had and that other members of Congress have.

The study found that lawmakers also “report more favorable debt terms when they join the finance committee, relative to other years and to the terms other congressional members obtain including those on other powerful committees.”

[Lucille]

Still? Quelle surprise.


Those rules were in the spotlight four years ago, after a congressional report found that mortgage industry titan Countrywide Financial created a “VIP loan unit” that gave lower mortgage rates and expedited loan processing services to lawmakers that oversaw legislation affecting the firm. At the time, the chairman of the House Oversight Committee, Republican Rep. Darrell Issa, said Countrywide used “discounted loans as a tool to ingratiate itself with policymakers in an effort to benefit the company’s business interests.”

Democratic U.S. Senators Chris Dodd and Kent Conrad were cleared by the ethics committee, which said they did not knowingly seek the perks. The committee, though, told the lawmakers they "should have exercised more vigilance in your dealings with Countrywide in order to avoid the appearance that you were receiving preferential treatment based on your status as a senator."

I remember that well.

The Farce Is Complete:...Congress Finds Itself Innocent Of Being "Friends Of Angelo"
http://www.ronpaulforums.com/showthread.php?399680-The-Farce-Is-Complete-Congress-Finds-Itself-Innocent-Of-Being-quot-Friends-Of-Angelo-quot
http://www.zerohedge.com/news/2012-12-27/farce-complete-case-countrywide-congress-finds-itself-innocent-being-friends-angelo


Well, as it turns out, all these findings are now moot because, as the AP, reports, the first Committee, that which allegedly represent Ethics at the House (trying typing that with a straight face), has no power to actually do anything for one simple reason: all the allegations of favored treatment involved loans that were granted so long ago that they fell outside the panel's jurisdiction. I.e., the statute of limitation has expired.

How very convenient - as it turns out Congress was abusing taxpayer money and receiving preferential treatment for years, but sorry, nothing can be done about it. It just happened so very long ago...
[...]
In other words the biggest concern was the fact that someone was caught with evidence exposing them red-handed, not that there was gross abrogation of congressional responsibilities, abuse of professional position, and receiving kickbacks in exchange for who knows what actions lobbied on behalf of the one firm that has now cost Bank of America tens of billions in contingent liabilities which have become all too real liabilities, and is in the running for the worst M&A deal of all time.

One really could not make this up if one tried...

So just like that, case closed, and once again in the case of people versus crony capitalism, the people lose.

* * *

And just to give readers a glimpse of the gross cover up that happened behind closed doors, but luckily caught on the record, and which allowed the House to continue on its merry criminal way, but where once more nobody will be held responsible or accountable, here are some extracts from the June 2011 deposition of none other than Agent Orange himself: Angelo Mozilo, courtesy of Manal Mehta.
[...]
And that, ladies and gentlemen, is what is called committing perjury, but since one guilty verdict would take down half of the House of Representatives as complicit criminals, he gets to walk.

The New Normal justice.