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		<title>{ISSUES &gt; BIAS AND BALANCE} - Myths and falsehoods about the purported link between affordable housing initiatives and the financial crisis</title>
		<link>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/myths-and-falsehoods-about-the-purported-link-between-20081098812.htm</link>
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		<pubDate>Sat, 11 Oct 2008 03:24:14 GMT</pubDate>
		<description>

Conservative
and other media figures, echoing a reported strategy on the part of
Republicans, have attempted to deflect blame
for the financial crisis onto proponents
of the expansion of affordable housing and
legislation and institutions created to effect that expansion.

Newsweek senior editor Daniel Gross wrote in an October 7 Slate commentary:



On the
Republican side of Congress, in the right-wing financial media (which is to say
the financial media), and in certain parts of the op-ed-o-sphere, there's a
consensus emerging that the whole mess should be laid at the feet of Fannie Mae
and Freddie Mac, the failed mortgage giants, and the Community Reinvestment
Act, a law passed during the Carter administration. The CRA, which was amended
in the 1990s and this decade, requires banks -- which had a long, distinguished
history of not making
loans to minorities -- to make more efforts to do so. 


Recent attacks have turned personal, with
conservative media -- along with congressional Republicans and Sen. John McCain
-- targeting Rep. Barney Frank (D-MA) directly as a purported culprit in the
financial crisis, falsely representing his decades-long advocacy of increased
affordable housing as advocacy of lax oversight over Fannie and Freddie. 

The attacks are premised on several myths
and falsehoods and, in the case of CRA
and attacks on minority lending, have taken on a racial tinge.

MYTH: The
1977 Community Reinvestment Act forced lenders into irresponsible lending

In a September 28 Boston Globe column,
Jeff Jacoby asserted:


The
roots of this crisis go back to the Carter administration. That was when
government officials, egged on by left-wing activists, began accusing mortgage
lenders of racism and "redlining" because urban blacks were being
denied mortgages at a higher rate than suburban whites.

The
pressure to make more loans to minorities (read: to borrowers with weak credit
histories) became relentless. Congress passed the Community Reinvestment Act,
empowering regulators to punish banks that failed to 'meet the credit needs' of
'low-income, minority, and distressed neighborhoods.' Lenders responded by
loosening their underwriting standards and making increasingly shoddy
loans."


Jacoby is not alone in his reference to "minority"
lending. On
the September 18 edition of Fox News' Your
World, host Neil Cavuto asked Rep. Xavier Becerra (D-CA),
"[W]hen you and many of your colleagues were pushing for more minority
lending and more expanded lending to folks who heretofore couldn't get
mortgages, when you were pushing homeownership ... Are you totally without
culpability here?" Cavuto later said, "I'm just saying, I don't
remember a clarion call that said, 'Fannie and Freddie are a disaster. Loaning
to minorities and risky folks is a disaster.' "

But the suggestion that the financial
crisis was caused by banks lending irresponsibly to comply with the CRA
is widely discredited. According to housing experts, a large number of subprime loans were not made under the CRA, which applies only to depository institutions. A study released earlier
this year by a law firm specializing in CRA compliance estimated
that in the 15 most populous metropolitan areas, 84.3 percent of subprime loans in 2006 were made
by financial institutions not governed by the CRA. Moreover, Janet Yellen,
president and CEO of the Federal Reserve Bank of San Francisco, stated in a
March 2008 speech
that "studies have shown that the CRA has increased the volume of responsible
lending to low- and moderate-income households"
[emphasis added].

In testimony before the House Financial
Services Committee, University of Michigan law professor Michael Barr stated:


Despite the fact that
CRA appears to have increased bank and thrift lending in low- and
moderate-income communities, such institutions are not the only ones operating
in these areas. In fact, with new and lower-cost sources of funding available
from the secondary market through securitization, and with advances in
financial technology, subprime lending exploded in the late 1990s, reaching
over $600 billion and 20% of all originations by 2005. More than half of
subprime loans were made by independent mortgage companies not subject to
comprehensive federal supervision; another 30 percent of such originations were
made by affiliates of banks or thrifts, which are not subject to routine
examination or supervision, and the remaining 20 percent were made by banks and
thrifts. Although reasonable people can disagree about how to interpret the
evidence, my own judgment is that the worst and most widespread abuses occurred
in the institutions with the least federal oversight. 

The housing
crisis we face today, driven by serious problems in the subprime lending,
suggests that our system of home mortgage regulation, including CRA, is
seriously deficient. We need to fill what my friend, the late Federal Reserve
Board Governor Ned Gramlich aptly termed, "the giant hole in the
supervisory safety net." Banks and thrifts are subject to comprehensive
federal regulation and supervision; their affiliates far less so; and
independent mortgage companies, not at all. Moreover, many market-based systems
designed to ensure sound practices in this sector-broker reputational
risk, lender oversight of brokers, investor oversight of lenders, rating agency
oversight of securitizations, and so on -- simply did not work. Conflicts of
interest, lax regulation, and "boom times" covered up the extent of
the abuses -- at least for a while, at least for those not directly affected by
abusive practices. But no more. 


Others who have
advanced this or similar claims include
guest Jonathan
Hoenig during the September 25 edition of The Radio Factor with Bill O'Reilly, radio host Laura
Ingraham during the September 25 edition of Fox News' The O'Reilly Factor, and a September 25 Investor's Business Daily editorial claiming that the CRA "forced banks to make many more subprime
loans."

MYTH: Excessive lending to
undocumented immigrants is responsible for the financial crisis

On the October 9 edition of CNN's Lou Dobbs Tonight, San Diego radio host Roger
Hedgecock claimed that "[w]e have a situation where today HUD [the Department
of Housing and Urban Development] was talking about 5 million illegal alien
home mortgage loans that have gone bad." Radio host Joe Madison responded,
"You see, this really angers me, because I'm sitting here ... and
wondering, how is it that people who are illegal get loans when people in my
community who are legal have a difficulty getting loans, and if they do get
them, they're often from predators?" Neither Hedgecock nor Madison cited
a source for the purported HUD statistic. On October 9, the Drudge Report
linked to an article on the Phoenix
radio station KFYI website under the headline, "HUD: Five
Million Fraudulent Mortgages Held by Illegals..." However, according to
an October 9 Phoenix Business Journal
article posted at 3:15 pm
MT (more than an hour before Lou Dobbs
Tonight aired), HUD "says there is no basis to news reports
that more than 5 million bad mortgages are held by illegal immigrants"
and "a HUD spokesman said ... his agency has no data showing the
number of illegal immigrants holding foreclosed or bad mortgages." 

Other media figures advancing the claim
that lending to undocumented immigrants is responsible for the mortgage crisis
include syndicated columnist Michelle Malkin, who wrote in her September 24
column that "there's one giant paternal elephant in the room that
has slipped notice: How illegal immigration, crime-enabling banks, and
open-borders Bush policies fueled the mortgage crisis.

MYTH: Congressional Democrats,
led by Barney Frank, opposed
strengthening oversight
over Fannie and Freddie

In a September 18 column,
Fox News host Bill O'Reilly falsely claimed that Frank
"sat by as mortgage brokers Fannie Mae and Freddie Mac made bad
loans" and asserted that "[i]nstead of demanding responsible business
practices from Fannie and Freddie, Frank continued to pound the table to extend
even more credit to 'low income' families." In fact, Frank did not
"s[i]t by." Frank's efforts to enhance regulatory oversight on Fannie
Mae and Freddie Mac include: 


In
2005, Frank, then the ranking Democrat on the House Financial Services
Committee, worked with committee chairman Rep. Michael Oxley (R-OH) on the
Federal Housing Finance Reform Act of 2005, which would have established
the Federal Housing Finance Agency (FHFA) to replace the Office of Federal
Housing Enterprise Oversight (OFHEO) as overseer of the
activities of Fannie Mae and Freddie Mac. After voting
for the bill in committee, Frank voted
against final passage of the bill on the House floor, stating
that he was doing so because an amendment
to the bill on the House floor
imposed restrictions on the kinds of nonprofit organizations that could receive
funding under the bill.



In
early 2007, as chairman of the House Financial Services Committee, Frank sponsored H.R. 1427,
a bill to create the FHFA, granting that agency "general supervisory and
regulatory authority over" Fannie Mae and Freddie Mac, and directing it to
reform the companies' business practices and regulate their exposure to credit
and market risk. Among other things, Frank's legislation, titled the "Federal Housing
Finance Reform Act of 2007," directed
the FHFA director to "ensure" that Fannie Mae and Freddie Mac
"operate[] in a safe and sound manner, including maintenance of adequate
capital and internal controls" and to establish
standards for "management of credit and counterparty risk" and "management
of market risk." The FHFA was eventually created after Congress
incorporated provisions
that House Speaker Nancy Pelosi (D-CA) said
were "similar"
to those of H.R. 1427 into the Housing and Economic Recovery Act of 2008, which
the president signed into law on July 30.


Some in the conservative media have taken the
charge further, suggesting that in the 1990s, Frank allowed his relationship
with Fannie Mae executive Herb Moses to affect his responsibility as a senior
member of the House Financial Services Committee to conduct oversight over Fannie Mae. For
example, in an October 3 article, Fox
News deputy Washington Managing editor Bill Sammon asserted, in a charge he
later echoed on Fox News' The
O'Reilly Factor, "Unqualified home buyers were not the
only ones who benefitted from Massachusetts Rep. Barney Frank's efforts to
deregulate Fannie Mae throughout the 1990s. So did Frank's partner, a Fannie
Mae executive at the forefront of the agency's push to relax lending
restrictions."

In his article, however, Sammon cited only two
sources: an anonymous Republican congressional staffer and Dan Gainor, who,
Sammon did not note, is an employee of the conservative Media Research Center.
Moreover, Sammon misrepresented Frank's record by reporting in his article that
Frank "spent years blocking GOP lawmakers from imposing tougher
regulations" on Fannie Mae and Freddie Mac. Sammon did not note in his
article or during an October 6
appearance on The O'Reilly Factor
that in the early 1990s, while Frank's Democratic Party still held the
majority in Congress, and while Moses was at Fannie Mae, Frank supported bills
to increase
regulation of Fannie Mae and create a government regulatory agency that would
supervise and have authority over some aspects of the company:


On
September 30, 1991, Frank voted for
a bill
to create a new regulatory agency to oversee Fannie and Freddie that would have
"[r]equire[d] the [agency's] Director to establish by regulation a
risk-based capital test for the enterprises," "[r]equire[d] the
Director to establish risk-based capital levels for each enterprise according
to statutory guidelines," "[e]stablishe[d] minimum capital levels,
critical capital levels, and enforcement levels," and "[s]et[] forth
mandatory supervisory actions for the enterprises at various capital levels,
including mandatory conservatorship." 



In
October 1992, Frank voted for
the Housing and
Community Development Act of 1992, creating OFHEO, which was
tasked with "ensur[ing] that Fannie Mae and Freddie Mac (the enterprises)
and their affiliates are adequately capitalized and operating safely." As
with the bill Frank voted for in September 1991, the new law gave OFHEO
authority to set, monitor, and enforce risk-based capital requirements for
Fannie and Freddie.


Neal
Boortz also
advanced this claim about Frank and his former partner during the October 8 edition of his
nationally syndicated radio show. On October 8, The Wall Street Journal reported that "[a] conservative political organization will begin airing
nationwide TV advertisements Wednesday that criticize congressional Democrats
for their ties to mortgage giants Freddie Mac and Fannie Mae."

MYTH:
Fannie Mae and Freddie Mac caused the "current financial mess"

In a September 19 Huffington Post blog post,
Center for American Progress senior fellow David Abramowitz wrote:


"There must be a
Republican playbook circulating widely with a chapter entitled, 'What to
say if asked who's to blame for the foreclosure mess.' Because an awful
lot of Republican candidates are all suddenly yelling 'Fannie Mae, Fannie
Mae, Fannie Mae' whenever plunging home prices and the housing crisis
comes up. [...] So their plan seems to
be to chant Fannie Mae often and loudly enough, and hope the public will get
confused about who really caused this huge national calamity. It is always a
good political story to just blame a bad guy who has something to do with the
same topic.


Indeed, during the September 24 edition of Fox News' Special Report, host
Brit Hume said, "Many
financial analysts are saying that if mortgage giants Fannie Mae and Freddie Mac
had been effectively regulated years ago, the supercharged subprime mortgage
meltdown that led to the current financial mess would either never have
happened or would have been nowhere near as severe." But rebutting the suggestion that the
subprime mortgage purchasing activities of Fannie Mae and Freddie Mac caused
the "current financial mess," economist Dean Baker recently stated:


Fannie and Freddie got
into subprime junk and helped fuel the housing bubble, but they were trailing
the irrational exuberance of the private sector. They lost market share in the years
2002-2007, as the volume of private issue mortgage backed securities exploded. In short, while Fannie and Freddie were completely
irresponsible in their lending practices, the claim that they were responsible
for the financial disaster is absurd on its face -- kind of like the claim that
the earth is flat.


Indeed, in a 2006 Securities and Exchange
Commission filing (available here)
covering its activities in 2004, Fannie Mae stated: "We did not
participate in large amounts of these non-traditional mortgages in 2004 and
2005." In the report, Fannie Mae also noted the growth of subprime lending
and reported, "These trends and our decision not to participate in large
amounts of these non-traditional mortgages contributed to a significant loss in
our share of new single-family mortgage-related securities issuances to
private-label issuers during this period." 

Gross wrote in Slate that Fannie Mae and Freddie Mac were an
"integral part" of a "culture of stupid, reckless
lending." But, he wrote, they are not the primary culprits in the current
financial crisis. He wrote:


Investment banks created a
demand for subprime loans because they saw it as a new asset class that they
could dominate. They made subprime loans for the same reason they made other
loans: They could get paid for making the loans, for turning them into securities,
and for trading them-frequently using borrowed capital.


As an example, he noted that the following happened during
testimony by Lehman Brothers CEO Richard Fuld before the House Committee on
Oversight and Government Reform:


At Monday's hearing, Rep.
John Mica, R-Fla., gamely tried to pin Lehman's demise on Fannie and Freddie.
After comparing Lehman's small political contributions with Fannie and
Freddie's much larger ones, Mica asked Fuld what role Fannie and Freddie's
failure played in Lehman's demise. Fuld's response:
"De minimis."


From Fuld's testimony:


MICA: And one of your big com -- well, one of the big packagers, or the competitor, so to speak, was Fannie
Mae, which was deep into this.
And you were -- you were dealing in some
of the paper, I think, for secondary markets and other securitized mortgage
paper, to basically package it and make money off it. Is that right?

FULD: Yes, sir.

MICA: What was Lehman
Brothers' exposure to the debt of Fannie Mae and Freddie Mac, and what
role did their collapse play in precipitating some of your financial troubles?

FULD: Our --

MICA: It
didn't matter or you --

FULD: Our exposure to both Fannie
Mae and Freddie Mac was de minimis,
sir. 


MYTH: Sen. Barack Obama's campaign has significantly more
ties to Fannie Mae and Freddie Mac than does John McCain's

In articles about the presidential candidates'
responses to the economic crisis, the Associated Press,
the Milwaukee Journal Sentinel,
the San Francisco
Chronicle, and The Washington Post
reported that the McCain campaign criticized Sen. Barack Obama for, in the
words of McCain spokesman Tucker Bounds, "his ties to spiraling lenders
like Fannie Mae, Freddie Mac and their jet-set CEOs." But those articles
did not note that several senior McCain campaign aides have served as lobbyists
for Fannie Mae, Freddie Mac, or both. According to a Media Matters for America search of the Senate
Office of Public Records' Lobbying Disclosure
Act Database, they include:


Political
adviser Charlie Black, who lobbied for Freddie Mac from 1999 to 2004; 



National
finance co-chairman Wayne Berman, who lobbied for Fannie Mae from 2004 to 2008
and for Freddie Mac in 2004; 



Congressional
liaison John Green, who lobbied for Fannie Mae from 2004 to 2007 and for
Freddie Mac in 2003; 



Arthur
Culvahouse, who reportedly
headed McCain's vice-presidential search team, lobbied for Fannie Mae in 1999,
2003, and 2004; and



William
E. Timmons Sr., who reportedly
"has been tapped by the McCain campaign to conduct a study in preparation
for the presidential transition," lobbied for Freddie Mac from 2000 to
2008.


Additionally, several
media
outlets
have reported that McCain campaign manager Rick Davis previously served as
president of the Homeownership Alliance, a Washington-based advocacy group
whose founding members included Fannie Mae and Freddie Mac, which Media Matters has noted.

MYTH:
Democrats sought to divert funding in the Emergency Economic Stabilization Act
to ACORN

On the September 29 edition
of CNN's Lou Dobbs
Tonight, host Lou Dobbs claimed: "ACORN
[Association of Community Organizations for Reform Now] stands to reap hundreds
of millions of dollars from a government bailout of Wall Street." Dobbs
added later: "This is a straightforward deal for ACORN and other groups,
left-wing groups, set up by the Democratic leadership of Congress. They're not
interested in the bailout per se. They want to spread this out, and many people
believe that this bailout in part is dear to the Democratic leadership because
they want to advance a social agenda here as much as much as an economic
bailout of Wall Street." Numerous other media figures also reported the false claim that
Democrats were trying to steer money to ACORN. In fact, neither the draft proposal nor the final version
of the bill contained any language mentioning ACORN. Those making the false
claim were misrepresenting a provision -- since removed
-- that would have directed 20 percent of any profits realized on troubled
assets purchased under the plan into two previously established funds: the
Housing Trust Fund and the Capital Magnet Fund, which, under the law authorizing
them, distribute funds through state block grants and through competitive
application processes, respectively.

On the October 9 edition of Fox
News' Hannity &amp; Colmes,
Wall Street Journal columnist
John Fund similarly made
the false claim that ACORN "almost got a slush fund in the housing bailout
bill a few weeks ago."

MYTH:
Former President Clinton has blamed Democrats for the financial crisis

In a September 30 post on Time.com's
Swampland blog, Washington bureau chief Jay
Carney claimed that comments former
President
Bill Clinton made during a September 25 interview on ABC's Good Morning America that were
subsequently featured in a McCain campaign ad "could
undercut Democratic arguments that Bush and the Republicans are primarily
responsible" for the financial crisis.
During that interview, Clinton said, "I
think the responsibility that the Democrats have may rest more in resisting any
efforts by Republicans in the Congress or by me when I was president to put
some standards and tighten up a little on Fannie Mae and Freddie Mac." But
in reporting on the ad, Carney failed to point out that in the very same
interview, Clinton also said, "I think the biggest mistake, by the way,
that contributed to the current circumstance that almost nobody talks about, is
the repeal after decades of something called the uptick rule, which allowed the
hedge funds, heavily leveraged, and others to just drive down the market
without any kind of automatic stoppers." In a separate interview aired
that day with Matt Lauer, co-host of NBC's Today, Clinton stated of the financial situation:
"[T]his thing really took off when the SEC, under this administration,
exercised less oversight and they got rid of something called the uptick rule,
which enabled betting down on housing stocks to go crazy."

The uptick rule, which was created in
1938, was a securities trading rule that regulated market short selling, the act of selling
a stock that an investor does not own (but borrows from a broker or someone
else) in anticipation that the stock's price will decrease. After a June 13,
2007, decision that became effective July 3, 2007, the SEC issued a final rule that repealed the
uptick rule.

From C-SPAN's October 6 coverage of the House
Oversight Reform Committee:


MICA: Again, you
-- when you opened your statement, you said that Lehman Brothers -- and it was
around for what, 150 years --
dealt in some pretty hard assets and some secure investments. You've been around a
while. What turned the corner for you to get into some of the more speculative
ventures, like subprime and some of the other, again, riskier investments?

FULD: As I said in my verbal
testimony, our participation in the mortgage-related businesses was clearly a
natural for us, given
our dominance in fixed income. That was something that went back a number of
years.

And even as I listened, as I say, to
the panel before me, they correctly pointed out that this was a goal of the
government to provide funding and mortgages to a number of people that
typically would not or could not have received a mortgage.

MICA: And one of your big com -- well, one of the big packagers, or the competitor, so to speak, was Fannie
Mae, which was deep into this.
And you were -- you were dealing in some
of the paper, I think, for secondary markets and other securitized mortgage
paper, to basically package it and make money off it. Is that right?

FULD: Yes, sir.

MICA: What was Lehman
Brothers' exposure to the debt of Fannie Mae and Freddie Mac, and what
role did their collapse play in precipitating some of your financial troubles?

FULD: Our --

MICA: It
didn't matter or you --

FULD: Our exposure to both Fannie
Mae and Freddie Mac was de minimis,
sir. 

MICA: OK, but their collapse -- did that help precipitate
any problems with your firm?

FULD: It certainly set the stage for
an environment, as I talked about loss of confidence and credit-crisis
mentality that permeated our market, clearly set the stage for investors losing
confidence, counterparties asking for additional collateral, and clearly an
environment that lost liquidity --

MICA: I notice you --

FULD : -- which is the
lifeblood of the capital market system.
</description>
		<source url="http://mediamatters.org/items/200810100022">Mediamatters.Org</source>
		<content:encoded><![CDATA[
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<tr><td colspan="2" style="font:bold 12pt Arial;vertical-align:top;"><a href="http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/myths-and-falsehoods-about-the-purported-link-between-20081098812.htm"><b>Myths and falsehoods about the purported link between affordable housing initiatives and the financial crisis</b></a> <sup style="font:8pt Verdana,Arial;vertical-align:top;">{<a href="http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/myths-and-falsehoods-about-the-purported-link-between-20081098812.htm" target="_blank">new window</a>}</sup></td></tr>
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<td style="font:6pt Verdana,Arial,Sans-serif;text-align:center;vertical-align:top;">&nbsp;</td>
<td width="100%" style="font:9pt Verdana,Arial,Sans-serif;vertical-align:top;"><span style="color:#808080;font-variant:small-caps;">Mediamatters.Org</span> - 

Conservative
and other media figures, echoing a reported strategy on the part of
Republicans, have attempted to deflect blame
for the financial crisis onto proponents
of the expansion of affordable housing and
legislation and institutions created to effect that expansion.

Newsweek senior editor Daniel Gross wrote in an October 7 Slate commentary:



On the
Republican side of Congress, in the right-wing financial media (which is to say
the financial media), and in certain parts of the op-ed-o-sphere, there's a
consensus emerging that the whole mess should be laid at the feet of Fannie Mae
and Freddie Mac, the failed mortgage giants, and the Community Reinvestment
Act, a law passed during the Carter administration. The CRA, which was amended
in the 1990s and this decade, requires banks -- which had a long, distinguished
history of not making
loans to minorities -- to make more efforts to do so. 


Recent attacks have turned personal, with
conservative media -- along with congressional Republicans and Sen. John McCain
-- targeting Rep. Barney Frank (D-MA) directly as a purported culprit in the
financial crisis, falsely representing his decades-long advocacy of increased
affordable housing as advocacy of lax oversight over Fannie and Freddie. 

The attacks are premised on several myths
and falsehoods and, in the case of CRA
and attacks on minority lending, have taken on a racial tinge.

MYTH: The
1977 Community Reinvestment Act forced lenders into irresponsible lending

In a September 28 Boston Globe column,
Jeff Jacoby asserted:


The
roots of this crisis go back to the Carter administration. That was when
government officials, egged on by left-wing activists, began accusing mortgage
lenders of racism and "redlining" because urban blacks were being
denied mortgages at a higher rate than suburban whites.

The
pressure to make more loans to minorities (read: to borrowers with weak credit
histories) became relentless. Congress passed the Community Reinvestment Act,
empowering regulators to punish banks that failed to 'meet the credit needs' of
'low-income, minority, and distressed neighborhoods.' Lenders responded by
loosening their underwriting standards and making increasingly shoddy
loans."


Jacoby is not alone in his reference to "minority"
lending. On
the September 18 edition of Fox News' Your
World, host Neil Cavuto asked Rep. Xavier Becerra (D-CA),
"[W]hen you and many of your colleagues were pushing for more minority
lending and more expanded lending to folks who heretofore couldn't get
mortgages, when you were pushing homeownership ... Are you totally without
culpability here?" Cavuto later said, "I'm just saying, I don't
remember a clarion call that said, 'Fannie and Freddie are a disaster. Loaning
to minorities and risky folks is a disaster.' "

But the suggestion that the financial
crisis was caused by banks lending irresponsibly to comply with the CRA
is widely discredited. According to housing experts, a large number of subprime loans were not made under the CRA, which applies only to depository institutions. A study released earlier
this year by a law firm specializing in CRA compliance estimated
that in the 15 most populous metropolitan areas, 84.3 percent of subprime loans in 2006 were made
by financial institutions not governed by the CRA. Moreover, Janet Yellen,
president and CEO of the Federal Reserve Bank of San Francisco, stated in a
March 2008 speech
that "studies have shown that the CRA has increased the volume of responsible
lending to low- and moderate-income households"
[emphasis added].

In testimony before the House Financial
Services Committee, University of Michigan law professor Michael Barr stated:


Despite the fact that
CRA appears to have increased bank and thrift lending in low- and
moderate-income communities, such institutions are not the only ones operating
in these areas. In fact, with new and lower-cost sources of funding available
from the secondary market through securitization, and with advances in
financial technology, subprime lending exploded in the late 1990s, reaching
over $600 billion and 20% of all originations by 2005. More than half of
subprime loans were made by independent mortgage companies not subject to
comprehensive federal supervision; another 30 percent of such originations were
made by affiliates of banks or thrifts, which are not subject to routine
examination or supervision, and the remaining 20 percent were made by banks and
thrifts. Although reasonable people can disagree about how to interpret the
evidence, my own judgment is that the worst and most widespread abuses occurred
in the institutions with the least federal oversight. 

The housing
crisis we face today, driven by serious problems in the subprime lending,
suggests that our system of home mortgage regulation, including CRA, is
seriously deficient. We need to fill what my friend, the late Federal Reserve
Board Governor Ned Gramlich aptly termed, "the giant hole in the
supervisory safety net." Banks and thrifts are subject to comprehensive
federal regulation and supervision; their affiliates far less so; and
independent mortgage companies, not at all. Moreover, many market-based systems
designed to ensure sound practices in this sector-broker reputational
risk, lender oversight of brokers, investor oversight of lenders, rating agency
oversight of securitizations, and so on -- simply did not work. Conflicts of
interest, lax regulation, and "boom times" covered up the extent of
the abuses -- at least for a while, at least for those not directly affected by
abusive practices. But no more. 


Others who have
advanced this or similar claims include
guest Jonathan
Hoenig during the September 25 edition of The Radio Factor with Bill O'Reilly, radio host Laura
Ingraham during the September 25 edition of Fox News' The O'Reilly Factor, and a September 25 Investor's Business Daily editorial claiming that the CRA "forced banks to make many more subprime
loans."

MYTH: Excessive lending to
undocumented immigrants is responsible for the financial crisis

On the October 9 edition of CNN's Lou Dobbs Tonight, San Diego radio host Roger
Hedgecock claimed that "[w]e have a situation where today HUD [the Department
of Housing and Urban Development] was talking about 5 million illegal alien
home mortgage loans that have gone bad." Radio host Joe Madison responded,
"You see, this really angers me, because I'm sitting here ... and
wondering, how is it that people who are illegal get loans when people in my
community who are legal have a difficulty getting loans, and if they do get
them, they're often from predators?" Neither Hedgecock nor Madison cited
a source for the purported HUD statistic. On October 9, the Drudge Report
linked to an article on the Phoenix
radio station KFYI website under the headline, "HUD: Five
Million Fraudulent Mortgages Held by Illegals..." However, according to
an October 9 Phoenix Business Journal
article posted at 3:15 pm
MT (more than an hour before Lou Dobbs
Tonight aired), HUD "says there is no basis to news reports
that more than 5 million bad mortgages are held by illegal immigrants"
and "a HUD spokesman said ... his agency has no data showing the
number of illegal immigrants holding foreclosed or bad mortgages." 

Other media figures advancing the claim
that lending to undocumented immigrants is responsible for the mortgage crisis
include syndicated columnist Michelle Malkin, who wrote in her September 24
column that "there's one giant paternal elephant in the room that
has slipped notice: How illegal immigration, crime-enabling banks, and
open-borders Bush policies fueled the mortgage crisis.

MYTH: Congressional Democrats,
led by Barney Frank, opposed
strengthening oversight
over Fannie and Freddie

In a September 18 column,
Fox News host Bill O'Reilly falsely claimed that Frank
"sat by as mortgage brokers Fannie Mae and Freddie Mac made bad
loans" and asserted that "[i]nstead of demanding responsible business
practices from Fannie and Freddie, Frank continued to pound the table to extend
even more credit to 'low income' families." In fact, Frank did not
"s[i]t by." Frank's efforts to enhance regulatory oversight on Fannie
Mae and Freddie Mac include: 


In
2005, Frank, then the ranking Democrat on the House Financial Services
Committee, worked with committee chairman Rep. Michael Oxley (R-OH) on the
Federal Housing Finance Reform Act of 2005, which would have established
the Federal Housing Finance Agency (FHFA) to replace the Office of Federal
Housing Enterprise Oversight (OFHEO) as overseer of the
activities of Fannie Mae and Freddie Mac. After voting
for the bill in committee, Frank voted
against final passage of the bill on the House floor, stating
that he was doing so because an amendment
to the bill on the House floor
imposed restrictions on the kinds of nonprofit organizations that could receive
funding under the bill.



In
early 2007, as chairman of the House Financial Services Committee, Frank sponsored H.R. 1427,
a bill to create the FHFA, granting that agency "general supervisory and
regulatory authority over" Fannie Mae and Freddie Mac, and directing it to
reform the companies' business practices and regulate their exposure to credit
and market risk. Among other things, Frank's legislation, titled the "Federal Housing
Finance Reform Act of 2007," directed
the FHFA director to "ensure" that Fannie Mae and Freddie Mac
"operate[] in a safe and sound manner, including maintenance of adequate
capital and internal controls" and to establish
standards for "management of credit and counterparty risk" and "management
of market risk." The FHFA was eventually created after Congress
incorporated provisions
that House Speaker Nancy Pelosi (D-CA) said
were "similar"
to those of H.R. 1427 into the Housing and Economic Recovery Act of 2008, which
the president signed into law on July 30.


Some in the conservative media have taken the
charge further, suggesting that in the 1990s, Frank allowed his relationship
with Fannie Mae executive Herb Moses to affect his responsibility as a senior
member of the House Financial Services Committee to conduct oversight over Fannie Mae. For
example, in an October 3 article, Fox
News deputy Washington Managing editor Bill Sammon asserted, in a charge he
later echoed on Fox News' The
O'Reilly Factor, "Unqualified home buyers were not the
only ones who benefitted from Massachusetts Rep. Barney Frank's efforts to
deregulate Fannie Mae throughout the 1990s. So did Frank's partner, a Fannie
Mae executive at the forefront of the agency's push to relax lending
restrictions."

In his article, however, Sammon cited only two
sources: an anonymous Republican congressional staffer and Dan Gainor, who,
Sammon did not note, is an employee of the conservative Media Research Center.
Moreover, Sammon misrepresented Frank's record by reporting in his article that
Frank "spent years blocking GOP lawmakers from imposing tougher
regulations" on Fannie Mae and Freddie Mac. Sammon did not note in his
article or during an October 6
appearance on The O'Reilly Factor
that in the early 1990s, while Frank's Democratic Party still held the
majority in Congress, and while Moses was at Fannie Mae, Frank supported bills
to increase
regulation of Fannie Mae and create a government regulatory agency that would
supervise and have authority over some aspects of the company:


On
September 30, 1991, Frank voted for
a bill
to create a new regulatory agency to oversee Fannie and Freddie that would have
"[r]equire[d] the [agency's] Director to establish by regulation a
risk-based capital test for the enterprises," "[r]equire[d] the
Director to establish risk-based capital levels for each enterprise according
to statutory guidelines," "[e]stablishe[d] minimum capital levels,
critical capital levels, and enforcement levels," and "[s]et[] forth
mandatory supervisory actions for the enterprises at various capital levels,
including mandatory conservatorship." 



In
October 1992, Frank voted for
the Housing and
Community Development Act of 1992, creating OFHEO, which was
tasked with "ensur[ing] that Fannie Mae and Freddie Mac (the enterprises)
and their affiliates are adequately capitalized and operating safely." As
with the bill Frank voted for in September 1991, the new law gave OFHEO
authority to set, monitor, and enforce risk-based capital requirements for
Fannie and Freddie.


Neal
Boortz also
advanced this claim about Frank and his former partner during the October 8 edition of his
nationally syndicated radio show. On October 8, The Wall Street Journal reported that "[a] conservative political organization will begin airing
nationwide TV advertisements Wednesday that criticize congressional Democrats
for their ties to mortgage giants Freddie Mac and Fannie Mae."

MYTH:
Fannie Mae and Freddie Mac caused the "current financial mess"

In a September 19 Huffington Post blog post,
Center for American Progress senior fellow David Abramowitz wrote:


"There must be a
Republican playbook circulating widely with a chapter entitled, 'What to
say if asked who's to blame for the foreclosure mess.' Because an awful
lot of Republican candidates are all suddenly yelling 'Fannie Mae, Fannie
Mae, Fannie Mae' whenever plunging home prices and the housing crisis
comes up. [...] So their plan seems to
be to chant Fannie Mae often and loudly enough, and hope the public will get
confused about who really caused this huge national calamity. It is always a
good political story to just blame a bad guy who has something to do with the
same topic.


Indeed, during the September 24 edition of Fox News' Special Report, host
Brit Hume said, "Many
financial analysts are saying that if mortgage giants Fannie Mae and Freddie Mac
had been effectively regulated years ago, the supercharged subprime mortgage
meltdown that led to the current financial mess would either never have
happened or would have been nowhere near as severe." But rebutting the suggestion that the
subprime mortgage purchasing activities of Fannie Mae and Freddie Mac caused
the "current financial mess," economist Dean Baker recently stated:


Fannie and Freddie got
into subprime junk and helped fuel the housing bubble, but they were trailing
the irrational exuberance of the private sector. They lost market share in the years
2002-2007, as the volume of private issue mortgage backed securities exploded. In short, while Fannie and Freddie were completely
irresponsible in their lending practices, the claim that they were responsible
for the financial disaster is absurd on its face -- kind of like the claim that
the earth is flat.


Indeed, in a 2006 Securities and Exchange
Commission filing (available here)
covering its activities in 2004, Fannie Mae stated: "We did not
participate in large amounts of these non-traditional mortgages in 2004 and
2005." In the report, Fannie Mae also noted the growth of subprime lending
and reported, "These trends and our decision not to participate in large
amounts of these non-traditional mortgages contributed to a significant loss in
our share of new single-family mortgage-related securities issuances to
private-label issuers during this period." 

Gross wrote in Slate that Fannie Mae and Freddie Mac were an
"integral part" of a "culture of stupid, reckless
lending." But, he wrote, they are not the primary culprits in the current
financial crisis. He wrote:


Investment banks created a
demand for subprime loans because they saw it as a new asset class that they
could dominate. They made subprime loans for the same reason they made other
loans: They could get paid for making the loans, for turning them into securities,
and for trading them-frequently using borrowed capital.


As an example, he noted that the following happened during
testimony by Lehman Brothers CEO Richard Fuld before the House Committee on
Oversight and Government Reform:


At Monday's hearing, Rep.
John Mica, R-Fla., gamely tried to pin Lehman's demise on Fannie and Freddie.
After comparing Lehman's small political contributions with Fannie and
Freddie's much larger ones, Mica asked Fuld what role Fannie and Freddie's
failure played in Lehman's demise. Fuld's response:
"De minimis."


From Fuld's testimony:


MICA: And one of your big com -- well, one of the big packagers, or the competitor, so to speak, was Fannie
Mae, which was deep into this.
And you were -- you were dealing in some
of the paper, I think, for secondary markets and other securitized mortgage
paper, to basically package it and make money off it. Is that right?

FULD: Yes, sir.

MICA: What was Lehman
Brothers' exposure to the debt of Fannie Mae and Freddie Mac, and what
role did their collapse play in precipitating some of your financial troubles?

FULD: Our --

MICA: It
didn't matter or you --

FULD: Our exposure to both Fannie
Mae and Freddie Mac was de minimis,
sir. 


MYTH: Sen. Barack Obama's campaign has significantly more
ties to Fannie Mae and Freddie Mac than does John McCain's

In articles about the presidential candidates'
responses to the economic crisis, the Associated Press,
the Milwaukee Journal Sentinel,
the San Francisco
Chronicle, and The Washington Post
reported that the McCain campaign criticized Sen. Barack Obama for, in the
words of McCain spokesman Tucker Bounds, "his ties to spiraling lenders
like Fannie Mae, Freddie Mac and their jet-set CEOs." But those articles
did not note that several senior McCain campaign aides have served as lobbyists
for Fannie Mae, Freddie Mac, or both. According to a Media Matters for America search of the Senate
Office of Public Records' Lobbying Disclosure
Act Database, they include:


Political
adviser Charlie Black, who lobbied for Freddie Mac from 1999 to 2004; 



National
finance co-chairman Wayne Berman, who lobbied for Fannie Mae from 2004 to 2008
and for Freddie Mac in 2004; 



Congressional
liaison John Green, who lobbied for Fannie Mae from 2004 to 2007 and for
Freddie Mac in 2003; 



Arthur
Culvahouse, who reportedly
headed McCain's vice-presidential search team, lobbied for Fannie Mae in 1999,
2003, and 2004; and



William
E. Timmons Sr., who reportedly
"has been tapped by the McCain campaign to conduct a study in preparation
for the presidential transition," lobbied for Freddie Mac from 2000 to
2008.


Additionally, several
media
outlets
have reported that McCain campaign manager Rick Davis previously served as
president of the Homeownership Alliance, a Washington-based advocacy group
whose founding members included Fannie Mae and Freddie Mac, which Media Matters has noted.

MYTH:
Democrats sought to divert funding in the Emergency Economic Stabilization Act
to ACORN

On the September 29 edition
of CNN's Lou Dobbs
Tonight, host Lou Dobbs claimed: "ACORN
[Association of Community Organizations for Reform Now] stands to reap hundreds
of millions of dollars from a government bailout of Wall Street." Dobbs
added later: "This is a straightforward deal for ACORN and other groups,
left-wing groups, set up by the Democratic leadership of Congress. They're not
interested in the bailout per se. They want to spread this out, and many people
believe that this bailout in part is dear to the Democratic leadership because
they want to advance a social agenda here as much as much as an economic
bailout of Wall Street." Numerous other media figures also reported the false claim that
Democrats were trying to steer money to ACORN. In fact, neither the draft proposal nor the final version
of the bill contained any language mentioning ACORN. Those making the false
claim were misrepresenting a provision -- since removed
-- that would have directed 20 percent of any profits realized on troubled
assets purchased under the plan into two previously established funds: the
Housing Trust Fund and the Capital Magnet Fund, which, under the law authorizing
them, distribute funds through state block grants and through competitive
application processes, respectively.

On the October 9 edition of Fox
News' Hannity & Colmes,
Wall Street Journal columnist
John Fund similarly made
the false claim that ACORN "almost got a slush fund in the housing bailout
bill a few weeks ago."

MYTH:
Former President Clinton has blamed Democrats for the financial crisis

In a September 30 post on Time.com's
Swampland blog, Washington bureau chief Jay
Carney claimed that comments former
President
Bill Clinton made during a September 25 interview on ABC's Good Morning America that were
subsequently featured in a McCain campaign ad "could
undercut Democratic arguments that Bush and the Republicans are primarily
responsible" for the financial crisis.
During that interview, Clinton said, "I
think the responsibility that the Democrats have may rest more in resisting any
efforts by Republicans in the Congress or by me when I was president to put
some standards and tighten up a little on Fannie Mae and Freddie Mac." But
in reporting on the ad, Carney failed to point out that in the very same
interview, Clinton also said, "I think the biggest mistake, by the way,
that contributed to the current circumstance that almost nobody talks about, is
the repeal after decades of something called the uptick rule, which allowed the
hedge funds, heavily leveraged, and others to just drive down the market
without any kind of automatic stoppers." In a separate interview aired
that day with Matt Lauer, co-host of NBC's Today, Clinton stated of the financial situation:
"[T]his thing really took off when the SEC, under this administration,
exercised less oversight and they got rid of something called the uptick rule,
which enabled betting down on housing stocks to go crazy."

The uptick rule, which was created in
1938, was a securities trading rule that regulated market short selling, the act of selling
a stock that an investor does not own (but borrows from a broker or someone
else) in anticipation that the stock's price will decrease. After a June 13,
2007, decision that became effective July 3, 2007, the SEC issued a final rule that repealed the
uptick rule.

From C-SPAN's October 6 coverage of the House
Oversight Reform Committee:


MICA: Again, you
-- when you opened your statement, you said that Lehman Brothers -- and it was
around for what, 150 years --
dealt in some pretty hard assets and some secure investments. You've been around a
while. What turned the corner for you to get into some of the more speculative
ventures, like subprime and some of the other, again, riskier investments?

FULD: As I said in my verbal
testimony, our participation in the mortgage-related businesses was clearly a
natural for us, given
our dominance in fixed income. That was something that went back a number of
years.

And even as I listened, as I say, to
the panel before me, they correctly pointed out that this was a goal of the
government to provide funding and mortgages to a number of people that
typically would not or could not have received a mortgage.

MICA: And one of your big com -- well, one of the big packagers, or the competitor, so to speak, was Fannie
Mae, which was deep into this.
And you were -- you were dealing in some
of the paper, I think, for secondary markets and other securitized mortgage
paper, to basically package it and make money off it. Is that right?

FULD: Yes, sir.

MICA: What was Lehman
Brothers' exposure to the debt of Fannie Mae and Freddie Mac, and what
role did their collapse play in precipitating some of your financial troubles?

FULD: Our --

MICA: It
didn't matter or you --

FULD: Our exposure to both Fannie
Mae and Freddie Mac was de minimis,
sir. 

MICA: OK, but their collapse -- did that help precipitate
any problems with your firm?

FULD: It certainly set the stage for
an environment, as I talked about loss of confidence and credit-crisis
mentality that permeated our market, clearly set the stage for investors losing
confidence, counterparties asking for additional collateral, and clearly an
environment that lost liquidity --

MICA: I notice you --

FULD : -- which is the
lifeblood of the capital market system.
<blockquote style="background:#FAFAFA;border:1px dotted #E6E6E6;font:italic 10pt Times New Roman;padding:9px;">Media Matters - Myths and falsehoods about the purported link between affordable housing initiatives and the financial crisis {...} Conservative and other media figures -- echoing a reported strategy on the part of Republicans -- have attempted to lay blame for the financial crisis on proponents of the expansion of affordable housing. Those attacks are premised on several myths and falsehoods. {...}</blockquote><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Published:</span> October 11, 2008, 3:24 am - <span style="color:#808080;">Indexed:</span> October 11, 2008, 10:40 am - <span style="color:#808080;">Page Size:</span>&nbsp;46KB</div><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Category:</span> <a href="http://www.world-of-newave.info/society/">Society</a> &gt; <a href="http://www.world-of-newave.info/society/issues/">Issues</a> &gt; <a href="http://www.world-of-newave.info/society/issues/business/">Business</a> &gt; <a href="http://www.world-of-newave.info/society/issues/business/media/">Media</a> &gt;  <a href="http://www.world-of-newave.info/society/issues/business/media/bias-and-balance/"><b>Bias and Balance</b></a></div></td></tr></table>
<br/>
]]></content:encoded>
		<category>Society > Issues > Business > Media > Bias and Balance</category>
	</item>
	<item>
		<title>{ISSUES &gt; BIAS AND BALANCE} - Ambinder reported Judy Black's PowerPoint linking Dems and Fannie and Freddie, but not her husband's link</title>
		<link>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/ambinder-reported-judy-black-s-powerpoint-linking-2008103628.htm</link>
		<guid>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/ambinder-reported-judy-black-s-powerpoint-linking-2008103628.htm</guid>
		<pubDate>Thu, 09 Oct 2008 00:04:33 GMT</pubDate>
		<description>

In an October 8 blog
post, Atlantic associate
editor Marc Ambinder reported that "Republicans are now heavily invested
in blaming the Democrats' coddling of Fannie Mae and Freddie Mac for the
subprime mortgage crisis." Ambinder then noted that Judy Black -- whom he identified as
"a policy director (read: lead lobbyist) for Brownstein Hyatt Farber
Schreck's DC arm" and "the wife of McCain strategist Charlie Black" -- had "forwarded to GOP lobbyists a
Power Point
presentation -- SHOTINTHEFANNIEMAE.PPS -- on the collapse of Fannie
and Freddie, and, in particular, the campaign contributions that Fannie and
Freddie provided to leading Democratic members of Congress." But while
Ambinder noted that
"nowhere does the presentation mention the role of a bipartisan roster of
lobbying firms, including McCain campaign manager Rick Davis's, in
helping" Fannie Mae, Freddie Mac, and other government-sponsored enterprises (GSEs), he did not point out that
Charlie Black himself lobbied for Freddie Mac from 1999 to 2004.


Additionally, in publishing two of the slides Judy Black forwarded, Ambinder
uncritically reported the PowerPoint's suggestion that Democrats were
responsible for the fact that "Congress holds no hearings, no one goes to
jail, or is punished" after an "OMB investigation" -- which,
according to the full version
of the PowerPoint, occurred in 2004 -- "finds massive
fraudulent bookkeeping at Fannie Mae." Ambinder did not note that
Republicans controlled both houses of Congress that year.

As Media Matters for
America has documented, McCain campaign
officials who have lobbied for Fannie Mae, Freddie Mac, or both include: Black,
national finance co-chairman Wayne Berman, congressional liaison John Green,
Arthur Culvahouse, who reportedly headed
McCain's vice-presidential search team, and William E. Timmons Sr., who reportedly
"has been tapped by the McCain campaign to conduct a study in preparation
for the presidential transition."

Ambinder's post, headlined "The Fannie/Freddie
Talking Points Presentation":


Republicans are now heavily invested
in blaming the Democrats' coddling of Fannie Mae and Freddie Mac for the
subprime mortgage crisis. Here's Majority Leader John Boehner at a GOP
fundraiser in Georgia:
"It's not a failure of the free market what's going on in the economy
today. The excesses of
Fannie Mae and Freddie Mac, and those who blocked the reforms that we wanted to
make, really are the issue. ...This was a failure of government, not a failure
of the free market. President
Bush, Senator McCain, and many other Republicans tried over the last
ten-to-fifteen years to fix this problem but to no avail." 

Judy Black is a policy director (read:
lead lobbyist) for Brownstein Hyatt Farber Schreck's DC arm. (Merrill Lynch was
a client this year...) Black is also the wife of McCain strategist Charlie
Black. 

On Monday, Black forwarded to GOP
lobbyists a Power Point presentation --

SHOTINTHEFANNIEMAE.PPS -- on the collapse of Fannie and Freddie, and, in
particular, the campaign contributions that Fannie and Freddie provided to
leading Democratic members of Congress. The theory is that, in the wake of the
financial scandals of 2003, the GSEs became nervous and started to fudge their
accounting in order to prove to politicians
that they were solvent and well-maintained; but they weren't, and Democrats
avoided Republican attempts to require that the GSEs keep larger capital
reserves and more tightly regulate their packaging of securities. (Here's a contrarian voice.)

This power-point presentation -- not
created by Black, btw -- has made the rounds and serves as the basis for
Republican talking points on the issue.

Here are two of the slides:


*         
An OMB investigation finds massive
fraudulent bookkeeping at Fannie Mae.
*         
False numbers triggered executive
bonuses every year.
*         
Congress holds no hearings, no one
goes to jail, or is punished.
* WHY NOT?

1999 -2005 

*         
Fannie Mae gives millions to
Democratic causes, examples: Jesse Jackson &amp; ACORN.
*         
Fannie Mae pays millions to 354
congressmen and senators, from both parties.
*         
Who got the most money?

Top 4 Recipients 

#1 Sen. Christopher Dodd, (D-CT) Chairman of the
Banking, Housing, &amp; Urban Affairs Committee 
#2 Sen. Barack Obama, (D-IL)
Federal Financial Management
Committee

Top 4 Recipients 

#3 Sen. Chuck Schumer, (D-NY)
Chairman of the Finance Committee 
#4 Rep. Barney Frank, (D-MA)


And


§        
Franklin Raines is now an advisor to
the Obama Campaign which wants the govt. to take over more of the economy.

§        
Did government involvement in the
mortgage market work out?

§        
How will even MORE government
involvement make it better? Do you want to be Sweden?

§        
McCain favors revising regulations
&amp; loan standards, selling off Fannie &amp; Freddie.


There's much left unsaid here and a
few inaccuracies: Frank Raines isn't an adviser to the Obama campaign; Sen.
Chuck Schumer is the chairman of the Joint Economic Committee, not the finance
committee. Jamie Gorelick's name is mispelled; nowhere does the presentation
mention the role of a bipartisan roster of lobbying firms, including McCain
campaign manager Rick Davis's, in helping the GSEs. 

I'm no expert on this, so I invite
reader comments. Is it effective? Persuasive? Misleading?
</description>
		<source url="http://mediamatters.org/items/200810080022">Mediamatters.Org</source>
		<content:encoded><![CDATA[
<table cellspacing="4" cellpadding="0" border="0" style="margin:9px;">
<tr><td colspan="2" style="font:bold 12pt Arial;vertical-align:top;"><a href="http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/ambinder-reported-judy-black-s-powerpoint-linking-2008103628.htm"><b>Ambinder reported Judy Black's PowerPoint linking Dems and Fannie and Freddie, but not her husband's link</b></a> <sup style="font:8pt Verdana,Arial;vertical-align:top;">{<a href="http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/ambinder-reported-judy-black-s-powerpoint-linking-2008103628.htm" target="_blank">new window</a>}</sup></td></tr>
<tr>
<td style="font:6pt Verdana,Arial,Sans-serif;text-align:center;vertical-align:top;">&nbsp;</td>
<td width="100%" style="font:9pt Verdana,Arial,Sans-serif;vertical-align:top;"><span style="color:#808080;font-variant:small-caps;">Mediamatters.Org</span> - 

In an October 8 blog
post, Atlantic associate
editor Marc Ambinder reported that "Republicans are now heavily invested
in blaming the Democrats' coddling of Fannie Mae and Freddie Mac for the
subprime mortgage crisis." Ambinder then noted that Judy Black -- whom he identified as
"a policy director (read: lead lobbyist) for Brownstein Hyatt Farber
Schreck's DC arm" and "the wife of McCain strategist Charlie Black" -- had "forwarded to GOP lobbyists a
Power Point
presentation -- SHOTINTHEFANNIEMAE.PPS -- on the collapse of Fannie
and Freddie, and, in particular, the campaign contributions that Fannie and
Freddie provided to leading Democratic members of Congress." But while
Ambinder noted that
"nowhere does the presentation mention the role of a bipartisan roster of
lobbying firms, including McCain campaign manager Rick Davis's, in
helping" Fannie Mae, Freddie Mac, and other government-sponsored enterprises (GSEs), he did not point out that
Charlie Black himself lobbied for Freddie Mac from 1999 to 2004.


Additionally, in publishing two of the slides Judy Black forwarded, Ambinder
uncritically reported the PowerPoint's suggestion that Democrats were
responsible for the fact that "Congress holds no hearings, no one goes to
jail, or is punished" after an "OMB investigation" -- which,
according to the full version
of the PowerPoint, occurred in 2004 -- "finds massive
fraudulent bookkeeping at Fannie Mae." Ambinder did not note that
Republicans controlled both houses of Congress that year.

As Media Matters for
America has documented, McCain campaign
officials who have lobbied for Fannie Mae, Freddie Mac, or both include: Black,
national finance co-chairman Wayne Berman, congressional liaison John Green,
Arthur Culvahouse, who reportedly headed
McCain's vice-presidential search team, and William E. Timmons Sr., who reportedly
"has been tapped by the McCain campaign to conduct a study in preparation
for the presidential transition."

Ambinder's post, headlined "The Fannie/Freddie
Talking Points Presentation":


Republicans are now heavily invested
in blaming the Democrats' coddling of Fannie Mae and Freddie Mac for the
subprime mortgage crisis. Here's Majority Leader John Boehner at a GOP
fundraiser in Georgia:
"It's not a failure of the free market what's going on in the economy
today. The excesses of
Fannie Mae and Freddie Mac, and those who blocked the reforms that we wanted to
make, really are the issue. ...This was a failure of government, not a failure
of the free market. President
Bush, Senator McCain, and many other Republicans tried over the last
ten-to-fifteen years to fix this problem but to no avail." 

Judy Black is a policy director (read:
lead lobbyist) for Brownstein Hyatt Farber Schreck's DC arm. (Merrill Lynch was
a client this year...) Black is also the wife of McCain strategist Charlie
Black. 

On Monday, Black forwarded to GOP
lobbyists a Power Point presentation --

SHOTINTHEFANNIEMAE.PPS -- on the collapse of Fannie and Freddie, and, in
particular, the campaign contributions that Fannie and Freddie provided to
leading Democratic members of Congress. The theory is that, in the wake of the
financial scandals of 2003, the GSEs became nervous and started to fudge their
accounting in order to prove to politicians
that they were solvent and well-maintained; but they weren't, and Democrats
avoided Republican attempts to require that the GSEs keep larger capital
reserves and more tightly regulate their packaging of securities. (Here's a contrarian voice.)

This power-point presentation -- not
created by Black, btw -- has made the rounds and serves as the basis for
Republican talking points on the issue.

Here are two of the slides:


*         
An OMB investigation finds massive
fraudulent bookkeeping at Fannie Mae.
*         
False numbers triggered executive
bonuses every year.
*         
Congress holds no hearings, no one
goes to jail, or is punished.
* WHY NOT?

1999 -2005 

*         
Fannie Mae gives millions to
Democratic causes, examples: Jesse Jackson & ACORN.
*         
Fannie Mae pays millions to 354
congressmen and senators, from both parties.
*         
Who got the most money?

Top 4 Recipients 

#1 Sen. Christopher Dodd, (D-CT) Chairman of the
Banking, Housing, & Urban Affairs Committee 
#2 Sen. Barack Obama, (D-IL)
Federal Financial Management
Committee

Top 4 Recipients 

#3 Sen. Chuck Schumer, (D-NY)
Chairman of the Finance Committee 
#4 Rep. Barney Frank, (D-MA)


And


§        
Franklin Raines is now an advisor to
the Obama Campaign which wants the govt. to take over more of the economy.

§        
Did government involvement in the
mortgage market work out?

§        
How will even MORE government
involvement make it better? Do you want to be Sweden?

§        
McCain favors revising regulations
& loan standards, selling off Fannie & Freddie.


There's much left unsaid here and a
few inaccuracies: Frank Raines isn't an adviser to the Obama campaign; Sen.
Chuck Schumer is the chairman of the Joint Economic Committee, not the finance
committee. Jamie Gorelick's name is mispelled; nowhere does the presentation
mention the role of a bipartisan roster of lobbying firms, including McCain
campaign manager Rick Davis's, in helping the GSEs. 

I'm no expert on this, so I invite
reader comments. Is it effective? Persuasive? Misleading?
<blockquote style="background:#FAFAFA;border:1px dotted #E6E6E6;font:italic 10pt Times New Roman;padding:9px;">Media Matters - Ambinder reported Judy Black&#39;s PowerPoint linking Dems and Fannie and Freddie, but not her husband&#39;s link {...} The Atlantic &#39;s Marc Ambinder reported that Judy Black, whom he identified as "a policy director (read: lead lobbyist) for Brownstein Hyatt Farber Schreck&#39;s DC arm" and "the wife of McCain strategist Charlie Black," forwarded a PowerPoint presentation on the "campaign contributions that Fannie and Freddie provided to leading Democratic members of Congress." But Ambinder did not point out that Charlie Black has lobbied for Freddie Mac. {...}</blockquote><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Published:</span> October 9, 2008, 12:04 am - <span style="color:#808080;">Indexed:</span> October 9, 2008, 12:28 pm - <span style="color:#808080;">Page Size:</span>&nbsp;18KB</div><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Category:</span> <a href="http://www.world-of-newave.info/society/">Society</a> &gt; <a href="http://www.world-of-newave.info/society/issues/">Issues</a> &gt; <a href="http://www.world-of-newave.info/society/issues/business/">Business</a> &gt; <a href="http://www.world-of-newave.info/society/issues/business/media/">Media</a> &gt;  <a href="http://www.world-of-newave.info/society/issues/business/media/bias-and-balance/"><b>Bias and Balance</b></a></div></td></tr></table>
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		<category>Society > Issues > Business > Media > Bias and Balance</category>
	</item>
	<item>
		<title>{EUROPE &gt; NEWSPAPERS} - Shadow Cabinet confused with Bill Clinton Hugh Hefner and John Wayne  </title>
		<link>http://articles.world-of-newave.info/regional/europe/united-kingdom/news-and-media/newspapers/shadow-cabinet-confused-with-bill-clinton-hugh-20080987545.htm</link>
		<guid>http://articles.world-of-newave.info/regional/europe/united-kingdom/news-and-media/newspapers/shadow-cabinet-confused-with-bill-clinton-hugh-20080987545.htm</guid>
		<pubDate>Sat, 27 Sep 2008 17:07:48 GMT</pubDate>
		<description>It's not a Shadow Cabinet it's a posse led by the young John Wayne say the   people of Birmingham. </description>
		<source url="http://www.telegraph.co.uk/news/newstopics/politics/conservative/3089243/Shadow-Cabinet-confused-with-Bill-Clinton-Hugh-Hefner-and-John-Wayne.html">Telegraph.Co.Uk</source>
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<tr><td colspan="2" style="font:bold 12pt Arial;vertical-align:top;"><a href="http://articles.world-of-newave.info/regional/europe/united-kingdom/news-and-media/newspapers/shadow-cabinet-confused-with-bill-clinton-hugh-20080987545.htm"><b>Shadow Cabinet confused with Bill Clinton Hugh Hefner and John Wayne  </b></a> <sup style="font:8pt Verdana,Arial;vertical-align:top;">{<a href="http://articles.world-of-newave.info/regional/europe/united-kingdom/news-and-media/newspapers/shadow-cabinet-confused-with-bill-clinton-hugh-20080987545.htm" target="_blank">new window</a>}</sup></td></tr>
<tr>
<td style="font:6pt Verdana,Arial,Sans-serif;text-align:center;vertical-align:top;">&nbsp;</td>
<td width="100%" style="font:9pt Verdana,Arial,Sans-serif;vertical-align:top;"><span style="color:#808080;font-variant:small-caps;">Www.Telegraph.Co.Uk</span> - It's not a Shadow Cabinet it's a posse led by the young John Wayne say the   people of Birmingham. <blockquote style="background:#FAFAFA;border:1px dotted #E6E6E6;font:italic 10pt Times New Roman;padding:9px;">Shadow Cabinet confused with Bill Clinton, Hugh Hefner and John Wayne   - Telegraph {...} It's not a Shadow Cabinet, it's a posse, led by the young John Wayne, and with a fair chance of riding into scandal since it teams Bill Clinton with Rita Hayworth and Playboy's Hugh Hefner with Dirty Den from EastEnders.  {...}</blockquote><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Published:</span> September 27, 2008, 5:07 pm - <span style="color:#808080;">Indexed:</span> September 28, 2008, 12:54 pm - <span style="color:#808080;">Page Size:</span>&nbsp;49KB</div><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Category:</span> <a href="http://www.world-of-newave.info/regional/">Regional</a> &gt; <a href="http://www.world-of-newave.info/regional/europe/">Europe</a> &gt; <a href="http://www.world-of-newave.info/regional/europe/united-kingdom/">United Kingdom</a> &gt; <a href="http://www.world-of-newave.info/regional/europe/united-kingdom/news-and-media/">News and Media</a> &gt;  <a href="http://www.world-of-newave.info/regional/europe/united-kingdom/news-and-media/newspapers/"><b>Newspapers</b></a></div></td></tr></table>
<br/>
]]></content:encoded>
		<category>Regional > Europe > United Kingdom > News and Media > Newspapers</category>
	</item>
	<item>
		<title>{MOVIES &gt; REVIEWS} - Miracle at St. Anna</title>
		<link>http://articles.world-of-newave.info/arts/movies/reviews/miracle-at-st-anna-20080980323.htm</link>
		<guid>http://articles.world-of-newave.info/arts/movies/reviews/miracle-at-st-anna-20080980323.htm</guid>
		<pubDate>Fri, 26 Sep 2008 19:57:21 GMT</pubDate>
		<description>

Starring:
Omar Benson Miller, Michael Ealy, Derek Luke, Laz Alonso
Review:
Critics are raining down hard on Spike Lee's first war epic. And
it's not like I don't have objections. Miracle at St. Anna
is too long, lazily constructed, and crammed with too many
characters and subplots for any director to develop fully outside
of an HBO miniseries. But Lee isn't any director. He's an
African-American maverick with a legit gripe against the white face
that Hollywood puts on war. The first scene in Miracle
shows us a black World War II veteran watching John Wayne on TV
lording it over the D-Day invasion in The Longest Day. "We
fought that war too," says the vet. Point taken.
It's no surprise that Lee decided to make a film of James
McBride's well-received novel about the Buffalo Soldiers, black GIs
segregated from the regular Army, who served with the 92nd
Infantry...
Rating:
2 Stars

</description>
		<source url="http://www.rollingstone.com/reviews/movie/18295338/review/23290330/miracle_at_st_anna?">Rollingstone.Com</source>
		<content:encoded><![CDATA[
<table cellspacing="4" cellpadding="0" border="0" style="margin:9px;">
<tr><td colspan="2" style="font:bold 12pt Arial;vertical-align:top;"><a href="http://articles.world-of-newave.info/arts/movies/reviews/miracle-at-st-anna-20080980323.htm"><b>Miracle at St. Anna</b></a> <sup style="font:8pt Verdana,Arial;vertical-align:top;">{<a href="http://articles.world-of-newave.info/arts/movies/reviews/miracle-at-st-anna-20080980323.htm" target="_blank">new window</a>}</sup></td></tr>
<tr>
<td style="font:6pt Verdana,Arial,Sans-serif;text-align:center;vertical-align:top;">&nbsp;</td>
<td width="100%" style="font:9pt Verdana,Arial,Sans-serif;vertical-align:top;"><span style="color:#808080;font-variant:small-caps;">Www.Rollingstone.Com</span> - 

Starring:
Omar Benson Miller, Michael Ealy, Derek Luke, Laz Alonso
Review:
Critics are raining down hard on Spike Lee's first war epic. And
it's not like I don't have objections. Miracle at St. Anna
is too long, lazily constructed, and crammed with too many
characters and subplots for any director to develop fully outside
of an HBO miniseries. But Lee isn't any director. He's an
African-American maverick with a legit gripe against the white face
that Hollywood puts on war. The first scene in Miracle
shows us a black World War II veteran watching John Wayne on TV
lording it over the D-Day invasion in The Longest Day. "We
fought that war too," says the vet. Point taken.
It's no surprise that Lee decided to make a film of James
McBride's well-received novel about the Buffalo Soldiers, black GIs
segregated from the regular Army, who served with the 92nd
Infantry...
Rating:
2 Stars

<blockquote style="background:#FAFAFA;border:1px dotted #E6E6E6;font:italic 10pt Times New Roman;padding:9px;"> Miracle at St. Anna : Review : Rolling Stone {...} Critics are raining down hard on Spike Lee's first war epic. And it's not like I don't have objectio... {...}</blockquote><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Published:</span> September 26, 2008, 7:57 pm - <span style="color:#808080;">Indexed:</span> September 27, 2008, 1:35 pm - <span style="color:#808080;">Page Size:</span>&nbsp;39KB</div><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Category:</span> <a href="http://www.world-of-newave.info/arts/">Arts</a> &gt; <a href="http://www.world-of-newave.info/arts/movies/">Movies</a> &gt;  <a href="http://www.world-of-newave.info/arts/movies/reviews/"><b>Reviews</b></a></div></td></tr></table>
<br/>
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		<category>Arts > Movies > Reviews</category>
	</item>
	<item>
		<title>{LITERATURE &gt; CYBERPUNK} - Pinhole skull-camera</title>
		<link>http://articles.world-of-newave.info/arts/literature/genres/cyberpunk/pinhole-skull-camera-20080951424.htm</link>
		<guid>http://articles.world-of-newave.info/arts/literature/genres/cyberpunk/pinhole-skull-camera-20080951424.htm</guid>
		<pubDate>Wed, 24 Sep 2008 05:47:31 GMT</pubDate>
		<description>Today on Boing Boing Gadgets, our John has word of artist artist Wayne Martin Belger's sculpture, "Third Eye," a pinhole camera in a human skull: Wayne Martin Belger makes pinhole cameras using a variety of materials including precious stones, metals, human organs, and bone. This piece, entitled Third Eye, features many of these materials, all constructed around the 150 year-old skull of a 13 year-old girl. The film is exposed to light through titular ocular cavity making a Polaroid momento mori. The photos taken with this camera (one of which is after the jump) stay with the theme, their blurriness and patina making them look as if they were snatched from the memories of the dead. Pinhole Camera Fashioned From 150 Year-Old Skull Discuss this on Boing Boing Gadgets)...
  
</description>
		<source url="http://www.boingboing.net/2008/09/23/pinhole-skullcamera.html">Boingboing.Net</source>
		<content:encoded><![CDATA[
<table cellspacing="4" cellpadding="0" border="0" style="margin:9px;">
<tr><td colspan="2" style="font:bold 12pt Arial;vertical-align:top;"><a href="http://articles.world-of-newave.info/arts/literature/genres/cyberpunk/pinhole-skull-camera-20080951424.htm"><b>Pinhole skull-camera</b></a> <sup style="font:8pt Verdana,Arial;vertical-align:top;">{<a href="http://articles.world-of-newave.info/arts/literature/genres/cyberpunk/pinhole-skull-camera-20080951424.htm" target="_blank">new window</a>}</sup></td></tr>
<tr>
<td style="font:6pt Verdana,Arial,Sans-serif;text-align:center;vertical-align:top;">&nbsp;</td>
<td width="100%" style="font:9pt Verdana,Arial,Sans-serif;vertical-align:top;"><span style="color:#808080;font-variant:small-caps;">Www.Boingboing.Net</span> - Today on Boing Boing Gadgets, our John has word of artist artist Wayne Martin Belger's sculpture, "Third Eye," a pinhole camera in a human skull: Wayne Martin Belger makes pinhole cameras using a variety of materials including precious stones, metals, human organs, and bone. This piece, entitled Third Eye, features many of these materials, all constructed around the 150 year-old skull of a 13 year-old girl. The film is exposed to light through titular ocular cavity making a Polaroid momento mori. The photos taken with this camera (one of which is after the jump) stay with the theme, their blurriness and patina making them look as if they were snatched from the memories of the dead. Pinhole Camera Fashioned From 150 Year-Old Skull Discuss this on Boing Boing Gadgets)...
  
<blockquote style="background:#FAFAFA;border:1px dotted #E6E6E6;font:italic 10pt Times New Roman;padding:9px;">Pinhole skull-camera - Boing Boing {...} </blockquote><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Published:</span> September 24, 2008, 5:47 am - <span style="color:#808080;">Indexed:</span> September 24, 2008, 11:40 am - <span style="color:#808080;">Page Size:</span>&nbsp;51KB</div><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Category:</span> <a href="http://www.world-of-newave.info/arts/">Arts</a> &gt; <a href="http://www.world-of-newave.info/arts/literature/">Literature</a> &gt; <a href="http://www.world-of-newave.info/arts/literature/genres/">Genres</a> &gt;  <a href="http://www.world-of-newave.info/arts/literature/genres/cyberpunk/"><b>Cyberpunk</b></a></div></td></tr></table>
<br/>
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		<category>Arts > Literature > Genres > Cyberpunk</category>
	</item>
	<item>
		<title>{ISSUES &gt; BIAS AND BALANCE} - CNN contributor West misled on Raines' and Johnson's purported roles in Obama campaign</title>
		<link>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/cnn-contributor-west-misled-on-raines-and-johnson-20080968332.htm</link>
		<guid>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/cnn-contributor-west-misled-on-raines-and-johnson-20080968332.htm</guid>
		<pubDate>Mon, 22 Sep 2008 20:13:17 GMT</pubDate>
		<description>During the September 21 edition of CNN's Lou Dobbs This Week, Washington Times columnist and CNN
contributor Diana West claimed that "two of [Sen. Barack Obama's]
most trusted campaign advisers are deeply implicated in the mess at Fannie and
Freddie. And I'm speaking of Franklin Raines and Jim Johnson. ... It is just
a political fact that Senator Obama must explain." However, both Raines,
a former Fannie Mae chairman and CEO, and the Obama campaign have denied that
Raines is an adviser. Additionally, West did not note that McCain's own
"most trusted campaign advisers" have served as lobbyists for
Fannie Mae, Freddie Mac, or both, as Media
Matters for America has documented. Furthermore, McCain campaign
manager Rick Davis previously served as president of the Homeownership
Alliance, a Washington-based advocacy group whose founding members included
Fannie Mae and Freddie Mac and which "defended the two companies against increased
regulation," according
to Politico.

Johnson, who had been selected to head
Obama's vice presidential search team, resigned from the
campaign on June 11.

In a September 18 blog post, Politico's Ben Smith posted denials from
Raines and the Obama campaign that Raines is an adviser to Obama:



Raines
said in the statement through the campaign, "I am not an advisor to Barack
Obama, nor have I provided his campaign with advice on housing or economic
matters."

Obama
spokesman Bill Burton added an attack:


This is
another flat-out lie from a dishonorable campaign that is increasingly
incapable of telling the truth. Frank Raines has never advised Senator Obama
about anything -- ever. And by the way, someone whose campaign manager and top
advisor worked and lobbied for Fannie Mae and Freddie Mac shouldn't be throwing
stones from his seven glass houses.



During a September 20 speech, Obama said of
the purported Raines connection: 


The
same day my opponent attacked me for being associated with a Fannie Mae guy
I've talked to for maybe 5 minutes in my entire life -- the same day he did
that -- the head of the lobbying shop at Fannie Mae turned around and said, wait a minute,
"when I see photographs of Senator McCain's staff, it looks to me like the
team of lobbyists who used to report to me." 


Mother
Jones reported on September
17 that the following McCain campaign officials have lobbied for Fannie Mae,
Freddie Mac, or both: chief political adviser Charlie Black, national finance
co-chairman Wayne Berman, congressional liaison John Green, Arthur Culvahouse,
who reportedly headed
McCain's vice-presidential search team, and William E. Timmons Sr., who reportedly "has
been tapped by the McCain campaign to conduct a study in preparation for the
presidential transition." According to a Media
Matters search of the Senate Office of Public Records' Lobbying Disclosure Act Database,
Black lobbied for Freddie Mac from 1999 to 2004; Berman for Fannie Mae from
2004 to 2008 and for Freddie Mac in 2004; Green for Fannie Mae from 2004 to
2007 and for Freddie Mac in 2003; Culvahouse for Fannie Mae in 1999, 2003, and
2004; and Timmons for Freddie Mac from 2000 to 2008.

A September 22 New York Times article -- headlined,
"Loan Titans Paid McCain Adviser Nearly $2 Million" -- reported
that Davis "was paid more than $30,000 a month for five years as
president of an advocacy group set up by the mortgage giants Fannie Mae and
Freddie Mac to defend them against stricter regulations, current and former
officials say." From the article: 


But
last week the McCain campaign stepped up a running battle of guilt by
association when it began broadcasting commercials trying to link Mr. Obama
directly to the government bailout of the mortgage giants this month by
charging that he takes advice from Fannie Mae's former chief executive,
Franklin Raines, an assertion both Mr. Raines and the Obama campaign dispute.

Incensed
by the advertisements, several current and former executives of the companies
came forward to discuss the role that Rick Davis, Mr. McCain's campaign
manager and longtime adviser, played in helping Fannie Mae and Freddie Mac beat
back regulatory challenges when he served as president of their advocacy group,
the Homeownership Alliance, formed in the summer of 2000. Some who came forward
were Democrats, but Republicans, speaking on the condition of anonymity,
confirmed their descriptions.

"The
value that he brought to the relationship was the closeness to Senator McCain
and the possibility that Senator McCain was going to run for president
again," said Robert McCarson, a former spokesman for Fannie Mae, who said
that while he worked there from 2000 to 2002, Fannie Mae and Freddie Mac
together paid Mr. Davis's firm $35,000 a month. Mr. Davis
"didn't really do anything," Mr. McCarson, a Democrat, said.



From the September 21 edition of
CNN's Lou Dobbs This Week:


KITTY PILGRIM
(guest host): What's your reaction to Senator McCain's approach to this crisis?

HANK
SHEINKOPF (Democratic strategist): It's called center-right populism. He's got
everything in place. He's trying to create an inspirational moment. He's
found the enemy. He's -- needs the -- he's got Palin for religion,
and he has got an economic drum to beat. Welcome to America. Not much has changed since
the 19th century.

PILGRIM:
All right. Diana?

WEST:
Well, you know, I think that it's -- it is political, of course, but I
think that a lot of what this crisis will ultimately shake out, because I think
the polls, as we can -- more closely resemble EKG measurements than actual
political sentiment. But Senator Obama's -- two of his most trusted campaign
advisers are deeply implicated in the mess at Fannie and Freddie. And I'm
speaking of Franklin Raines and Jim Johnson.

I don't
know how Senator Obama distances himself from that, and I think that's exactly
a very important point politically for Senator McCain to hit home. But it
doesn't strike me as simply a matter of partisan politicking. It's just a
political fact that Senator Obama must explain.

PILGRIM:
Well, Senator Obama also came out and, in fairness, let's put up his comments
that he had to say about a plan for his -- for the financial markets.

OBAMA
[video clip]: We cannot only have a plan for Wall Street. We must also help Main Street. I'm
glad that our government's moving so quickly in addressing the crisis that
threatens some of our biggest banks and corporations, but a similar crisis has
threatened families, workers, and homeowners for months and months, and
Washington has done far too little to help.

PILGRIM:
Now, this seems more like standard political campaign talk. He did not have as
many specifics about what he would do. In fact, he actually took a step back
and said, "Now is the time for the Treasury and the president to take the
lead on this" and offered very few specifics. Errol, thoughts on this?

ERROL
LOUIS (New York
Daily News columnist): Yeah. I --
well, I mean, that -- yeah, that reflects the reality that he doesn't have a
perfect, or even decent, information about what to do. This is not a time to
start, you know, trying to make policy for one of the biggest crises that hit
the economy in a generation.

But,
you know, I gotta address something that Diana said. I mean, it is true that
people who are involved in the mess are close to the Obama campaign, but it's
nothing nearly like what's going on, on the McCain side, where he's --
lobbyists for Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, all of
the -- AIG -- all of the groups that are being bailed out are right there at
the top of this campaign, and he himself, as longtime chair of the Commerce
Committee, was part of the oversight mechanism in Washington.

So, if
it's broken, you know, the guy who was there for years and years and years, I
think, has to take at least as much, if not more, blame for what has gone
on.

    
</description>
		<source url="http://mediamatters.org/items/200809220011">Mediamatters.Org</source>
		<content:encoded><![CDATA[
<table cellspacing="4" cellpadding="0" border="0" style="margin:9px;">
<tr><td colspan="2" style="font:bold 12pt Arial;vertical-align:top;"><a href="http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/cnn-contributor-west-misled-on-raines-and-johnson-20080968332.htm"><b>CNN contributor West misled on Raines' and Johnson's purported roles in Obama campaign</b></a> <sup style="font:8pt Verdana,Arial;vertical-align:top;">{<a href="http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/cnn-contributor-west-misled-on-raines-and-johnson-20080968332.htm" target="_blank">new window</a>}</sup></td></tr>
<tr>
<td style="font:6pt Verdana,Arial,Sans-serif;text-align:center;vertical-align:top;">&nbsp;</td>
<td width="100%" style="font:9pt Verdana,Arial,Sans-serif;vertical-align:top;"><span style="color:#808080;font-variant:small-caps;">Mediamatters.Org</span> - During the September 21 edition of CNN's Lou Dobbs This Week, Washington Times columnist and CNN
contributor Diana West claimed that "two of [Sen. Barack Obama's]
most trusted campaign advisers are deeply implicated in the mess at Fannie and
Freddie. And I'm speaking of Franklin Raines and Jim Johnson. ... It is just
a political fact that Senator Obama must explain." However, both Raines,
a former Fannie Mae chairman and CEO, and the Obama campaign have denied that
Raines is an adviser. Additionally, West did not note that McCain's own
"most trusted campaign advisers" have served as lobbyists for
Fannie Mae, Freddie Mac, or both, as Media
Matters for America has documented. Furthermore, McCain campaign
manager Rick Davis previously served as president of the Homeownership
Alliance, a Washington-based advocacy group whose founding members included
Fannie Mae and Freddie Mac and which "defended the two companies against increased
regulation," according
to Politico.

Johnson, who had been selected to head
Obama's vice presidential search team, resigned from the
campaign on June 11.

In a September 18 blog post, Politico's Ben Smith posted denials from
Raines and the Obama campaign that Raines is an adviser to Obama:



Raines
said in the statement through the campaign, "I am not an advisor to Barack
Obama, nor have I provided his campaign with advice on housing or economic
matters."

Obama
spokesman Bill Burton added an attack:


This is
another flat-out lie from a dishonorable campaign that is increasingly
incapable of telling the truth. Frank Raines has never advised Senator Obama
about anything -- ever. And by the way, someone whose campaign manager and top
advisor worked and lobbied for Fannie Mae and Freddie Mac shouldn't be throwing
stones from his seven glass houses.



During a September 20 speech, Obama said of
the purported Raines connection: 


The
same day my opponent attacked me for being associated with a Fannie Mae guy
I've talked to for maybe 5 minutes in my entire life -- the same day he did
that -- the head of the lobbying shop at Fannie Mae turned around and said, wait a minute,
"when I see photographs of Senator McCain's staff, it looks to me like the
team of lobbyists who used to report to me." 


Mother
Jones reported on September
17 that the following McCain campaign officials have lobbied for Fannie Mae,
Freddie Mac, or both: chief political adviser Charlie Black, national finance
co-chairman Wayne Berman, congressional liaison John Green, Arthur Culvahouse,
who reportedly headed
McCain's vice-presidential search team, and William E. Timmons Sr., who reportedly "has
been tapped by the McCain campaign to conduct a study in preparation for the
presidential transition." According to a Media
Matters search of the Senate Office of Public Records' Lobbying Disclosure Act Database,
Black lobbied for Freddie Mac from 1999 to 2004; Berman for Fannie Mae from
2004 to 2008 and for Freddie Mac in 2004; Green for Fannie Mae from 2004 to
2007 and for Freddie Mac in 2003; Culvahouse for Fannie Mae in 1999, 2003, and
2004; and Timmons for Freddie Mac from 2000 to 2008.

A September 22 New York Times article -- headlined,
"Loan Titans Paid McCain Adviser Nearly $2 Million" -- reported
that Davis "was paid more than $30,000 a month for five years as
president of an advocacy group set up by the mortgage giants Fannie Mae and
Freddie Mac to defend them against stricter regulations, current and former
officials say." From the article: 


But
last week the McCain campaign stepped up a running battle of guilt by
association when it began broadcasting commercials trying to link Mr. Obama
directly to the government bailout of the mortgage giants this month by
charging that he takes advice from Fannie Mae's former chief executive,
Franklin Raines, an assertion both Mr. Raines and the Obama campaign dispute.

Incensed
by the advertisements, several current and former executives of the companies
came forward to discuss the role that Rick Davis, Mr. McCain's campaign
manager and longtime adviser, played in helping Fannie Mae and Freddie Mac beat
back regulatory challenges when he served as president of their advocacy group,
the Homeownership Alliance, formed in the summer of 2000. Some who came forward
were Democrats, but Republicans, speaking on the condition of anonymity,
confirmed their descriptions.

"The
value that he brought to the relationship was the closeness to Senator McCain
and the possibility that Senator McCain was going to run for president
again," said Robert McCarson, a former spokesman for Fannie Mae, who said
that while he worked there from 2000 to 2002, Fannie Mae and Freddie Mac
together paid Mr. Davis's firm $35,000 a month. Mr. Davis
"didn't really do anything," Mr. McCarson, a Democrat, said.



From the September 21 edition of
CNN's Lou Dobbs This Week:


KITTY PILGRIM
(guest host): What's your reaction to Senator McCain's approach to this crisis?

HANK
SHEINKOPF (Democratic strategist): It's called center-right populism. He's got
everything in place. He's trying to create an inspirational moment. He's
found the enemy. He's -- needs the -- he's got Palin for religion,
and he has got an economic drum to beat. Welcome to America. Not much has changed since
the 19th century.

PILGRIM:
All right. Diana?

WEST:
Well, you know, I think that it's -- it is political, of course, but I
think that a lot of what this crisis will ultimately shake out, because I think
the polls, as we can -- more closely resemble EKG measurements than actual
political sentiment. But Senator Obama's -- two of his most trusted campaign
advisers are deeply implicated in the mess at Fannie and Freddie. And I'm
speaking of Franklin Raines and Jim Johnson.

I don't
know how Senator Obama distances himself from that, and I think that's exactly
a very important point politically for Senator McCain to hit home. But it
doesn't strike me as simply a matter of partisan politicking. It's just a
political fact that Senator Obama must explain.

PILGRIM:
Well, Senator Obama also came out and, in fairness, let's put up his comments
that he had to say about a plan for his -- for the financial markets.

OBAMA
[video clip]: We cannot only have a plan for Wall Street. We must also help Main Street. I'm
glad that our government's moving so quickly in addressing the crisis that
threatens some of our biggest banks and corporations, but a similar crisis has
threatened families, workers, and homeowners for months and months, and
Washington has done far too little to help.

PILGRIM:
Now, this seems more like standard political campaign talk. He did not have as
many specifics about what he would do. In fact, he actually took a step back
and said, "Now is the time for the Treasury and the president to take the
lead on this" and offered very few specifics. Errol, thoughts on this?

ERROL
LOUIS (New York
Daily News columnist): Yeah. I --
well, I mean, that -- yeah, that reflects the reality that he doesn't have a
perfect, or even decent, information about what to do. This is not a time to
start, you know, trying to make policy for one of the biggest crises that hit
the economy in a generation.

But,
you know, I gotta address something that Diana said. I mean, it is true that
people who are involved in the mess are close to the Obama campaign, but it's
nothing nearly like what's going on, on the McCain side, where he's --
lobbyists for Fannie Mae, Freddie Mac, Lehman Brothers, Merrill Lynch, all of
the -- AIG -- all of the groups that are being bailed out are right there at
the top of this campaign, and he himself, as longtime chair of the Commerce
Committee, was part of the oversight mechanism in Washington.

So, if
it's broken, you know, the guy who was there for years and years and years, I
think, has to take at least as much, if not more, blame for what has gone
on.

    
<blockquote style="background:#FAFAFA;border:1px dotted #E6E6E6;font:italic 10pt Times New Roman;padding:9px;">Media Matters - CNN contributor West misled on Raines&#39; and Johnson&#39;s purported roles in Obama campaign {...} On CNN, Diana West claimed that former Fannie Mae CEO Franklin Raines was among Sen. Barack Obama&#39;s "most trusted campaign advisers ... deeply implicated in the mess at Fannie and Freddie [Mac]." However, both Raines and the Obama campaign have denied that Raines is an adviser. Further, West did not note that Sen. John McCain&#39;s own "most trusted campaign advisers" have served as lobbyists for Fannie Mae, Freddie Mac, or both. {...}</blockquote><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Published:</span> September 22, 2008, 8:13 pm - <span style="color:#808080;">Indexed:</span> September 23, 2008, 11:12 pm - <span style="color:#808080;">Page Size:</span>&nbsp;24KB</div><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Category:</span> <a href="http://www.world-of-newave.info/society/">Society</a> &gt; <a href="http://www.world-of-newave.info/society/issues/">Issues</a> &gt; <a href="http://www.world-of-newave.info/society/issues/business/">Business</a> &gt; <a href="http://www.world-of-newave.info/society/issues/business/media/">Media</a> &gt;  <a href="http://www.world-of-newave.info/society/issues/business/media/bias-and-balance/"><b>Bias and Balance</b></a></div></td></tr></table>
<br/>
]]></content:encoded>
		<category>Society > Issues > Business > Media > Bias and Balance</category>
	</item>
	<item>
		<title>{ISSUES &gt; BIAS AND BALANCE} - CBS' Reid aired McCain attacking Obama for purportedly being in the "Washington  culture of lobbying" without noting McCain's own lobbying ties</title>
		<link>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/cbs-reid-aired-mccain-attacking-obama-for-purportedly-20080944435.htm</link>
		<guid>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/cbs-reid-aired-mccain-attacking-obama-for-purportedly-20080944435.htm</guid>
		<pubDate>Sun, 21 Sep 2008 00:15:14 GMT</pubDate>
		<description>During a report on the September 19
broadcast of the
CBS Evening News,
correspondent Chip Reid uncritically aired video of Sen. John McCain
claiming that the "crisis on Wall Street, my friends, started in the
Washington culture of lobbying and influence-peddling, and [Sen. Barack Obama]
 was right square in the middle of it." However, Reid did not mention McCain's own ties to the "Washington culture of lobbying." According
 to a September 17 
Mother Jones

report,
"at least 83" McCain aides, policy advisers, or fundraisers "have in
recent years lobbied for the financial industry McCain now attacks."
Those lobbyists
include several senior McCain campaign officials, including chief political adviser Charlie Black, national
 finance co-chairman Wayne Berman, congressional liaison John Green, Arthur Culvahouse, who

reportedly headed McCain's vice-presidential search team, and William E. Timmons Sr., who

reportedly
"has been tapped by the McCain campaign to conduct a study in
preparation for the presidential transition." Furthermore, McCain
campaign manager Rick Davis previously served as president of the Homeownership Alliance, a
Washington-based
advocacy group whose founding members included Fannie Mae and Freddie
Mac and which "defended the two companies against increased
regulation,"

according to the
Politico. 

From
Mother Jones' September 17 report: 


McCain
has been quick with fiery, populist-tinged speeches. But one thing has
been missing: any acknowledgment that McCain's own campaign has been
loaded with the type of people he's been denouncing. (The McCain
campaign did not respond to a request for comment; we will update the
post if they do.) As
Mother Jones previously 
reported,
former Senator Phil Gramm, McCain's onetime campaign chairman, used a
backroom maneuver in late 2000 to slip into law a bill that kept credit
default swaps unregulated. These financial instruments greased the way
to the subprime meltdown that has led to today's economic crisis.
Several of McCain's most senior campaign aides have

lobbied for Fannie Mae and Freddie Mac. And the Democratic National Committee, using publicly available records, has identified

177 lobbyists working for the McCain campaign as either aides, policy advisers, or fundraisers.


Of those 177 lobbyists, according to a
Mother Jones review of
Senate and House records, at least 83 have in recent years lobbied for
the financial industry McCain now attacks. These are high-paid
influence-peddlers who have been working the corridors of the nation's
capital to win favors and special treatment for investment banks,
securities firms, hedge funds, accounting outfits, and insurance
companies. Their clients have included AIG, the newest symbol of
corporate excess; Lehman Brothers, which filed for bankruptcy on Monday
sending the stock market into a tailspin; Merrill Lynch, which was
bought out by Bank of America this week; and Washington Mutual, the
banking giant that could be the next to fall. Among these 83 lobbyists
are McCain's chief political adviser, Charlie Black (JP Morgan,
Washington Mutual Bank, Freddie Mac, Mortgage Bankers Association of
America); McCain's national finance co-chairman, Wayne Berman (AIG,
Blackstone, Credit Suisse, Fannie Mae, Freddie Mac); the campaign's
congressional liaison, John Green (Carlyle Group, Citigroup, Icahn
Associates, Fannie Mae); McCain's veep vetter, Arthur Culvahouse
(Fannie Mae); and McCain's transition planning chief, William Timmons
Sr. (Citigroup, Freddie Mac, Vanguard Group). 


The
Homeownership Alliance announced its formation in a September 29, 2000, press release. The press release
listed Fannie Mae and Freddie Mac as two of its founding members and announced that "Rick Davis, formerly presidential campaign manager
 for Arizona Sen. John McCain, will serve as president of the Homeownership Alliance, which will be based in
Alexandria [Virginia]." From the
press release: 


Vowing to increase support for
America's
housing system so that it can expand homeownership opportunities for
more Americans, housing, mortgage and community development leaders
today announced the formation of the Homeownership Alliance.

The
Homeownership Alliance is a broad-based public education organization
that will promote the American housing system. The group will not lobby
members of Congress, but will concentrate on public advocacy,
principally through its web site http://www.homeownershipalliance.com.
Rick Davis, formerly presidential campaign manager for Arizona Sen.
John McCain, will serve as president of the Homeownership Alliance,
which will be based in Alexandria.

The following organizations have joined as participating members of the Homeownership Alliance:

The American League of Financial Institutions
The Enterprise Foundation
Fannie Mae
Freddie Mac
Independent Community Bankers Association
Local Initiatives Support Corporation
National Association of Home Builders
National Association of Real Estate Brokers
National Bankers Association
National Urban League


[...]

Rick Davis
 said that homeownership in America
is a core national priority. "Yet, some critics of the system,
particularly those who disagree with the role currently played by the
housing Government Sponsored Enterprises, are implicitly calling for
policy makers to reconstruct the system so it can be more like that of
other industrialized countries. But our current system is much better
than theirs. Forty-percent down-payments, like they have in Germany, and
huge prepayment penalties that are the norm for refinancing in some
European countries are things we did away with decades ago, and we
certainly don't want to turn the clock back,"
Davis said. 



In a September 1, 2000, article (retrieved from the Factiva database),
Institutional Investor wrote of 
Davis' involvement with the Homeownership Alliance:
 


Rick
Davis loves an underdog. After serving as Senator John McCain's
campaign manager, he recently joined the cause of defending Fannie Mae
and Freddie Mac. The agencies, which dominate the market for
mortgage-backed securities, find themselves under attack from Congress,
from the Treasury Department and from Federal Reserve chairman Alan
Greenspan. All want to tighten regulation and strip the agencies of
some of their special privileges as government-sponsored enterprises.
"You can say what you want about free-market distortions, but people
like the system because it gets them into houses cheap," notes Davis,
who will run an advocacy group called the Homeownership Alliance out of
his 
Alexandria, Virginia,
lobbying firm. He was recruited by Fannie Mae senior vice president
John Buckley, whom he met while working on Ronald Reagan's 1984
reelection campaign. Says
Davis, "What we tried to do in the McCain campaign parallels what we want to do here -- protect the consumer."
 


Liz Wolgemuth of
U.S.
 News &
 World Report noted the
Institutional Investor 
article in a September 19 blog post.

According to the Internet Archive's cache of the Homeownership Alliance website -- which is no longer accessible --
Davis 
was listed as president of the organization as late as February 2006. At the time,
senior 
vice presidents for both Fannie Mae and Freddie Mac

served on the
Alliance's board as "Senior Advisor[s]." Tribune Media's Andrew Zajac

reported on June 11 that the Homeownership Alliance "dissolved about two years ago."

In a July 16
Politico 
article, Lisa Lerer wrote
of Davis' tenure as president of the Homeownership Alliance:
"[F]or
years, Rick Davis served as president of an advocacy group led by
Fannie Mae and Freddie Mac that defended the two companies against
increased regulation." The article
also stated: 


McCain
campaign manager Davis headed the Homeownership Alliance, a lobbying
association that included Fannie, Freddie, nonprofit groups, real
estate agents, homebuilders and consumer advocates. The group's stated
goal was to increase affordable housing. But it also worked to oppose
congressional efforts to tighten controls on Fannie and Freddie.

In July 2003,
Davis
wrote to the American Banker, taking issue with an opinion piece by
Leslie Paige of Citizens Against Government Waste, arguing that Fannie
and Freddie should operate with greater transparency.

"Several of Ms. Paige's assertions bear correction,"
Davis wrote, defending Fannie and Freddie on behalf of the group. "The GSEs
[government sponsored enterprises] 
are subject to an innovative and stringent risk-based capital
stress test -- the toughest in the financial services industry."



In a
letter to
The New York Times, which has yet to be published by the
Times but was
posted on the Politico's
website around the time of Reid's September 19 report, former Fannie Mae
senior 
vice president William Maloni wrote: 


Yesterday,
Senator John McCain released a television commercial attacking Barack
Obama for allegedly receiving advice on the economy from former Fannie
Mae CEO Franklin Raines. From the stump, he has recently tried tying
Senator Obama to Fannie Mae, as if there is some guilt in the
association with Fannie Mae's former executives.

It
is an interesting card for Senator McCain to play, given that his
campaign manager, Rick Davis, was paid by Fannie Mae and Freddie Mac
several hundred thousand dollars early in this decade to head up an
organization to lobby in their behalf called The Homeownership
Alliance. ...

I
worked in government relations for Fannie Mae for more than 20 years,
leading the group for most of those years. When I see photographs of
Sen. McCain's staff, it looks to me like the team of lobbyists who used
to report to me. Senator McCain's attack on Senator Obama is a cheap
shot, and hypocritical. 


As Media Matters for America
documented, a July 11, 2007,
Politico 
article reported that
Davis
"founded a lobbying firm -- Davis Manafort Inc. -- which has made at
least $2.8 million lobbying Congress since 1998." According to
disclosure
reports
 filed with Congress, Davis registered to lobby from 1998 to 2005 for Davis Manafort.
A February 3, 2007,
National Journal
article reported that "Davis, a longtime lobbyist and financial
consultant," is "on leave" from Davis Manafort to work for McCain's
campaign.

Media Matters has
noted
that several other media outlets recently reported that the McCain
campaign attacked Obama for what it says are his ties to Freddie Mac
and Fannie Mae without noting that several senior McCain campaign aides
have lobbied for one or both of those entities.

From the September 19
broadcast of the CBS Evening News with Katie Couric: 


REID: Earlier in
Green Bay, 
Wisconsin,
where the race is also tight, McCain laid out his economic plan, heavy
on government intervention. The centerpiece, a new federal agency, the
Mortgage and Financial Institutions Trust,
to identify troubled businesses long before they need a government
bailout. Also, new laws and regulations to make what happens on Wall
Street more transparent, to protect consumers and investors,
 and to put financial wrongdoers behind bars.

McCAIN: On my watch, the consequences for corporate abuse will not be more enrichment, but more likely an indictment.

REID: But while McCain's speech was billed as a policy address, he spent much of his time bashing Barack Obama.

McCAIN: The crisis on Wall Street, my friends, started in the
Washington culture of lobbying and influence-peddling, and he was right square
 in the middle of it.

REID: Here in
Minnesota, the unemployment rate is now the highest it's been in more than 20 years,
so whoever wins here will probably be whoever has the best plan for the economy. Katie.

KATIE
COURIC (anchor): Chip Reid. Chip, thanks a lot. 

    
</description>
		<source url="http://mediamatters.org/items/200809200003">Mediamatters.Org</source>
		<content:encoded><![CDATA[
<table cellspacing="4" cellpadding="0" border="0" style="margin:9px;">
<tr><td colspan="2" style="font:bold 12pt Arial;vertical-align:top;"><a href="http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/cbs-reid-aired-mccain-attacking-obama-for-purportedly-20080944435.htm"><b>CBS' Reid aired McCain attacking Obama for purportedly being in the "Washington  culture of lobbying" without noting McCain's own lobbying ties</b></a> <sup style="font:8pt Verdana,Arial;vertical-align:top;">{<a href="http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/cbs-reid-aired-mccain-attacking-obama-for-purportedly-20080944435.htm" target="_blank">new window</a>}</sup></td></tr>
<tr>
<td style="font:6pt Verdana,Arial,Sans-serif;text-align:center;vertical-align:top;">&nbsp;</td>
<td width="100%" style="font:9pt Verdana,Arial,Sans-serif;vertical-align:top;"><span style="color:#808080;font-variant:small-caps;">Mediamatters.Org</span> - During a report on the September 19
broadcast of the
CBS Evening News,
correspondent Chip Reid uncritically aired video of Sen. John McCain
claiming that the "crisis on Wall Street, my friends, started in the
Washington culture of lobbying and influence-peddling, and [Sen. Barack Obama]
 was right square in the middle of it." However, Reid did not mention McCain's own ties to the "Washington culture of lobbying." According
 to a September 17 
Mother Jones

report,
"at least 83" McCain aides, policy advisers, or fundraisers "have in
recent years lobbied for the financial industry McCain now attacks."
Those lobbyists
include several senior McCain campaign officials, including chief political adviser Charlie Black, national
 finance co-chairman Wayne Berman, congressional liaison John Green, Arthur Culvahouse, who

reportedly headed McCain's vice-presidential search team, and William E. Timmons Sr., who

reportedly
"has been tapped by the McCain campaign to conduct a study in
preparation for the presidential transition." Furthermore, McCain
campaign manager Rick Davis previously served as president of the Homeownership Alliance, a
Washington-based
advocacy group whose founding members included Fannie Mae and Freddie
Mac and which "defended the two companies against increased
regulation,"

according to the
Politico. 

From
Mother Jones' September 17 report: 


McCain
has been quick with fiery, populist-tinged speeches. But one thing has
been missing: any acknowledgment that McCain's own campaign has been
loaded with the type of people he's been denouncing. (The McCain
campaign did not respond to a request for comment; we will update the
post if they do.) As
Mother Jones previously 
reported,
former Senator Phil Gramm, McCain's onetime campaign chairman, used a
backroom maneuver in late 2000 to slip into law a bill that kept credit
default swaps unregulated. These financial instruments greased the way
to the subprime meltdown that has led to today's economic crisis.
Several of McCain's most senior campaign aides have

lobbied for Fannie Mae and Freddie Mac. And the Democratic National Committee, using publicly available records, has identified

177 lobbyists working for the McCain campaign as either aides, policy advisers, or fundraisers.


Of those 177 lobbyists, according to a
Mother Jones review of
Senate and House records, at least 83 have in recent years lobbied for
the financial industry McCain now attacks. These are high-paid
influence-peddlers who have been working the corridors of the nation's
capital to win favors and special treatment for investment banks,
securities firms, hedge funds, accounting outfits, and insurance
companies. Their clients have included AIG, the newest symbol of
corporate excess; Lehman Brothers, which filed for bankruptcy on Monday
sending the stock market into a tailspin; Merrill Lynch, which was
bought out by Bank of America this week; and Washington Mutual, the
banking giant that could be the next to fall. Among these 83 lobbyists
are McCain's chief political adviser, Charlie Black (JP Morgan,
Washington Mutual Bank, Freddie Mac, Mortgage Bankers Association of
America); McCain's national finance co-chairman, Wayne Berman (AIG,
Blackstone, Credit Suisse, Fannie Mae, Freddie Mac); the campaign's
congressional liaison, John Green (Carlyle Group, Citigroup, Icahn
Associates, Fannie Mae); McCain's veep vetter, Arthur Culvahouse
(Fannie Mae); and McCain's transition planning chief, William Timmons
Sr. (Citigroup, Freddie Mac, Vanguard Group). 


The
Homeownership Alliance announced its formation in a September 29, 2000, press release. The press release
listed Fannie Mae and Freddie Mac as two of its founding members and announced that "Rick Davis, formerly presidential campaign manager
 for Arizona Sen. John McCain, will serve as president of the Homeownership Alliance, which will be based in
Alexandria [Virginia]." From the
press release: 


Vowing to increase support for
America's
housing system so that it can expand homeownership opportunities for
more Americans, housing, mortgage and community development leaders
today announced the formation of the Homeownership Alliance.

The
Homeownership Alliance is a broad-based public education organization
that will promote the American housing system. The group will not lobby
members of Congress, but will concentrate on public advocacy,
principally through its web site http://www.homeownershipalliance.com.
Rick Davis, formerly presidential campaign manager for Arizona Sen.
John McCain, will serve as president of the Homeownership Alliance,
which will be based in Alexandria.

The following organizations have joined as participating members of the Homeownership Alliance:

The American League of Financial Institutions
The Enterprise Foundation
Fannie Mae
Freddie Mac
Independent Community Bankers Association
Local Initiatives Support Corporation
National Association of Home Builders
National Association of Real Estate Brokers
National Bankers Association
National Urban League


[...]

Rick Davis
 said that homeownership in America
is a core national priority. "Yet, some critics of the system,
particularly those who disagree with the role currently played by the
housing Government Sponsored Enterprises, are implicitly calling for
policy makers to reconstruct the system so it can be more like that of
other industrialized countries. But our current system is much better
than theirs. Forty-percent down-payments, like they have in Germany, and
huge prepayment penalties that are the norm for refinancing in some
European countries are things we did away with decades ago, and we
certainly don't want to turn the clock back,"
Davis said. 



In a September 1, 2000, article (retrieved from the Factiva database),
Institutional Investor wrote of 
Davis' involvement with the Homeownership Alliance:
 


Rick
Davis loves an underdog. After serving as Senator John McCain's
campaign manager, he recently joined the cause of defending Fannie Mae
and Freddie Mac. The agencies, which dominate the market for
mortgage-backed securities, find themselves under attack from Congress,
from the Treasury Department and from Federal Reserve chairman Alan
Greenspan. All want to tighten regulation and strip the agencies of
some of their special privileges as government-sponsored enterprises.
"You can say what you want about free-market distortions, but people
like the system because it gets them into houses cheap," notes Davis,
who will run an advocacy group called the Homeownership Alliance out of
his 
Alexandria, Virginia,
lobbying firm. He was recruited by Fannie Mae senior vice president
John Buckley, whom he met while working on Ronald Reagan's 1984
reelection campaign. Says
Davis, "What we tried to do in the McCain campaign parallels what we want to do here -- protect the consumer."
 


Liz Wolgemuth of
U.S.
 News &
 World Report noted the
Institutional Investor 
article in a September 19 blog post.

According to the Internet Archive's cache of the Homeownership Alliance website -- which is no longer accessible --
Davis 
was listed as president of the organization as late as February 2006. At the time,
senior 
vice presidents for both Fannie Mae and Freddie Mac

served on the
Alliance's board as "Senior Advisor[s]." Tribune Media's Andrew Zajac

reported on June 11 that the Homeownership Alliance "dissolved about two years ago."

In a July 16
Politico 
article, Lisa Lerer wrote
of Davis' tenure as president of the Homeownership Alliance:
"[F]or
years, Rick Davis served as president of an advocacy group led by
Fannie Mae and Freddie Mac that defended the two companies against
increased regulation." The article
also stated: 


McCain
campaign manager Davis headed the Homeownership Alliance, a lobbying
association that included Fannie, Freddie, nonprofit groups, real
estate agents, homebuilders and consumer advocates. The group's stated
goal was to increase affordable housing. But it also worked to oppose
congressional efforts to tighten controls on Fannie and Freddie.

In July 2003,
Davis
wrote to the American Banker, taking issue with an opinion piece by
Leslie Paige of Citizens Against Government Waste, arguing that Fannie
and Freddie should operate with greater transparency.

"Several of Ms. Paige's assertions bear correction,"
Davis wrote, defending Fannie and Freddie on behalf of the group. "The GSEs
[government sponsored enterprises] 
are subject to an innovative and stringent risk-based capital
stress test -- the toughest in the financial services industry."



In a
letter to
The New York Times, which has yet to be published by the
Times but was
posted on the Politico's
website around the time of Reid's September 19 report, former Fannie Mae
senior 
vice president William Maloni wrote: 


Yesterday,
Senator John McCain released a television commercial attacking Barack
Obama for allegedly receiving advice on the economy from former Fannie
Mae CEO Franklin Raines. From the stump, he has recently tried tying
Senator Obama to Fannie Mae, as if there is some guilt in the
association with Fannie Mae's former executives.

It
is an interesting card for Senator McCain to play, given that his
campaign manager, Rick Davis, was paid by Fannie Mae and Freddie Mac
several hundred thousand dollars early in this decade to head up an
organization to lobby in their behalf called The Homeownership
Alliance. ...

I
worked in government relations for Fannie Mae for more than 20 years,
leading the group for most of those years. When I see photographs of
Sen. McCain's staff, it looks to me like the team of lobbyists who used
to report to me. Senator McCain's attack on Senator Obama is a cheap
shot, and hypocritical. 


As Media Matters for America
documented, a July 11, 2007,
Politico 
article reported that
Davis
"founded a lobbying firm -- Davis Manafort Inc. -- which has made at
least $2.8 million lobbying Congress since 1998." According to
disclosure
reports
 filed with Congress, Davis registered to lobby from 1998 to 2005 for Davis Manafort.
A February 3, 2007,
National Journal
article reported that "Davis, a longtime lobbyist and financial
consultant," is "on leave" from Davis Manafort to work for McCain's
campaign.

Media Matters has
noted
that several other media outlets recently reported that the McCain
campaign attacked Obama for what it says are his ties to Freddie Mac
and Fannie Mae without noting that several senior McCain campaign aides
have lobbied for one or both of those entities.

From the September 19
broadcast of the CBS Evening News with Katie Couric: 


REID: Earlier in
Green Bay, 
Wisconsin,
where the race is also tight, McCain laid out his economic plan, heavy
on government intervention. The centerpiece, a new federal agency, the
Mortgage and Financial Institutions Trust,
to identify troubled businesses long before they need a government
bailout. Also, new laws and regulations to make what happens on Wall
Street more transparent, to protect consumers and investors,
 and to put financial wrongdoers behind bars.

McCAIN: On my watch, the consequences for corporate abuse will not be more enrichment, but more likely an indictment.

REID: But while McCain's speech was billed as a policy address, he spent much of his time bashing Barack Obama.

McCAIN: The crisis on Wall Street, my friends, started in the
Washington culture of lobbying and influence-peddling, and he was right square
 in the middle of it.

REID: Here in
Minnesota, the unemployment rate is now the highest it's been in more than 20 years,
so whoever wins here will probably be whoever has the best plan for the economy. Katie.

KATIE
COURIC (anchor): Chip Reid. Chip, thanks a lot. 

    
<blockquote style="background:#FAFAFA;border:1px dotted #E6E6E6;font:italic 10pt Times New Roman;padding:9px;">Media Matters - CBS&#39; Reid aired McCain attacking Obama for purportedly being in the "Washington  culture of lobbying" without noting McCain&#39;s own lobbying ties {...} On the CBS Evening News , Chip Reid uncritically aired video of Sen. John McCain claiming that the "crisis on Wall Street, my friends, started in the Washington culture of lobbying and influence-peddling, and [Sen. Barack Obama]  was right square in the middle of it." However, Reid did not mention McCain&#39;s own ties to the "Washington culture of lobbying." According  to a Mother Jones report, "at least 83" McCain aides, policy advisers, or fundraisers "have in recent years lobbied for  the financial industry McCain now attacks." {...}</blockquote><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Published:</span> September 21, 2008, 12:15 am - <span style="color:#808080;">Indexed:</span> September 21, 2008, 10:32 am - <span style="color:#808080;">Page Size:</span>&nbsp;30KB</div><div style="font:8pt Verdana,Arial;vertical-align:top;"><span style="color:#808080;">Category:</span> <a href="http://www.world-of-newave.info/society/">Society</a> &gt; <a href="http://www.world-of-newave.info/society/issues/">Issues</a> &gt; <a href="http://www.world-of-newave.info/society/issues/business/">Business</a> &gt; <a href="http://www.world-of-newave.info/society/issues/business/media/">Media</a> &gt;  <a href="http://www.world-of-newave.info/society/issues/business/media/bias-and-balance/"><b>Bias and Balance</b></a></div></td></tr></table>
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		<category>Society > Issues > Business > Media > Bias and Balance</category>
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		<title>{ISSUES &gt; BIAS AND BALANCE} - Print media reported McCain attacks on Obama for purported ties to Freddie and Fannie, but not McCain aides' lobbying on their behalf</title>
		<link>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/print-media-reported-mccain-attacks-on-obama-for-20080935426.htm</link>
		<guid>http://articles.world-of-newave.info/society/issues/business/media/bias-and-balance/print-media-reported-mccain-attacks-on-obama-for-20080935426.htm</guid>
		<pubDate>Fri, 19 Sep 2008 19:23:23 GMT</pubDate>
		<description>In articles about the presidential candidates'
responses to the economic crisis, the Associated
Press, the Milwaukee Journal
Sentinel, the San
Francisco Chronicle, and The
Washington Post reported that the McCain campaign criticized
Sen. Barack Obama for, in the words of McCain spokesman Tucker Bounds,
"his ties to spiraling lenders like Fannie Mae, Freddie Mac and their
jet-set CEOs." But those articles did not note that several senior McCain
campaign aides have served as lobbyists for Fannie Mae, Freddie Mac, or both.
As Mother Jones reported
on its MoJoBlog, the following McCain campaign officials have lobbied for one
or both entities: chief political adviser Charlie Black, national finance
co-chairman Wayne Berman, congressional liaison John Green, Arthur Culvahouse,
who reportedly
headed McCain's vice-presidential
search team, and William E. Timmons Sr., who reportedly
"has been tapped by the McCain campaign to conduct a study in preparation
for the presidential transition."

According to a Media
Matters for America search of the Senate Office of Public
Records' Lobbying
Disclosure Act Database, Black lobbied for Freddie Mac from 1999 to 2004;
Berman for Fannie Mae from 2004 to 2008 and for Freddie Mac in 2004; Green for
Fannie Mae from 2004 to 2007 and for Freddie Mac in 2003; Culvahouse for Fannie
Mae in 1999, 2003, and 2004; and Timmons for Freddie Mac from 2000 to 2008.

None of the four articles noted McCain aides' ties to
Fannie Mae and Freddie Mac, despite quoting McCain's criticism of Obama.
The AP reported Bounds' claim that "[w]hen Barack Obama came to
Washington, he chose to strengthen his ties to spiraling lenders like Fannie
Mae, Freddie Mac and their jet-set CEOs, not make change." The Chronicle and the Post each reported all or part of
McCain's statement that Obama "didn't lift a
finger to avert this crisis. While the leaders of Fannie and Freddie were lining the pockets of his campaign, they were
sowing the seeds of a financial crisis we see today, and they also enriched
themselves with millions of dollars in payments. That's not change, that's
what's broken in Washington,
my friends." Additionally, both the Chronicle and the Post reported McCain's accusation
that former Fannie Mae executive Franklin D. Raines served as an adviser to the
Obama campaign, although the Post
reported that the Obama campaign issued a statement from Raines that
"strongly denied having provided counsel to Obama." The Journal Sentinel reported that McCain
"said Obama was a major recipient of campaign contributions from officials
with the two entities."

From the September 19 AP
article:


Saying that McCain strongly
advocated deregulation and then changed his mind, Obama said: "We can't
afford to lurch back and forth between positions depending on the latest news
of the day when dealing with an economic crisis.

"We need some clear and steady
leadership and that's why I was ahead of the curve in calling for
regulation," he said. "And that's why I'm calling on the Treasury and
the Federal Reserve to use their emergency authorities to maintain the flow of
credit, to support the availability of mortgages and to ensure that our
financial system is well capitalized."

In response, McCain campaign
spokesman Tucker Bounds said: "When Barack Obama came to Washington, he chose to strengthen his ties
to spiraling lenders like Fannie Mae, Freddie Mac and their jet-set CEOs, not
make change. The American people cannot afford leadership that puts a higher
premium on campaign contributions than protecting hardworking
Americans."


From the September 19 Chronicle
article:


McCain charged Obama with tapping two former Fannie Mae executives as advisers, James Johnson and Franklin Raines, who left
under the cloud of an accounting scandal. "When I pushed legislation to
reform Fannie Mae and Freddie Mac, Sen. Obama was
silent," McCain told a rally in Iowa Thursday. "He didn't lift a finger
to avert this crisis. While the leaders of Fannie and Freddie were lining the pockets of his campaign, they were sowing
the sees [sic] of a financial
crisis we see today ... That's not change, that's what's broken in Washington."


From the September 19 Post
article:


Late Thursday, his [McCain's]
campaign launched a TV ad noting that Obama had received advice from Franklin
D. Raines, the former head of failed mortgage giant Fannie Mae, calling it
"shocking" and saying: "Bad advice. Bad instincts. Not ready to
lead."

"While the leaders of Fannie
and Freddie were lining the pockets of his campaign, they were sowing the seeds
of the financial crisis we see today, and they also enriched themselves with
millions of dollars in payments," McCain said of Obama while campaigning
in Iowa.
"That's not change. That's what's broken in Washington, my friends."

The McCain campaign cited a July
Washington Post profile of Raines as the source for his connection to Obama. In
that profile, it was reported that he had "taken calls from Barack Obama's
presidential campaign seeking his advice on mortgage and housing policy
matters." In a statement issued by the Obama campaign late Thursday,
Raines strongly denied having provided counsel to Obama, saying: "I am not
an advisor to Barack Obama, nor have I provided his campaign with advice on
housing or economic matters."


From the September 18 Journal
Sentinel article:


During his speech, McCain offered a
blistering criticism of Obama, particularly in relation to the nation's
mortgage crisis highlighted by the government takeover of Fannie Mae and
Freddie Mac.

McCain said Obama was a major
recipient of campaign contributions from officials with the two entities. He
also said when he called for reform two years ago, Obama "didn't lift a
hand to avert the crisis."

Said McCain: "That's not
change. That's what's broken in Congress, my friends."

    
</description>
		<source url="http://mediamatters.org/items/200809190013">Mediamatters.Org</source>
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