Who’s Watching Fannie and Freddie? Oversight Agency Fires Its IG
Posted November 16th, 2009 at 3:43pm in Enterprise and Free Markets 
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Don’t look now, but there’s no independent Inspector General at the Federal Housing Finance Agency — which is responsible for overseeing federally-run finance giants Fannie Mae and Freddie Mac. As reported in the Huffington Post of all places, the former Inspector General, Ed Kelley was relieved of his duties in September. Officials at the housing agency had challenged his authority, arguing that he was never properly appointed to the position. The matter was referred to the Department of Justice, which agreed. Although Kelley had been IG for the agency’s precedessor, DOJ concluded he needed to be formally re-appointed when the FHFA was created in 2008.
President Obama, of course, can always appoint a new IG. But so far none has been named, and a selection looks to be some time away.
The net result is that the office is now empty. Kelley now serves as an internal auditor at the FHFA, but enjoys no independence. Kelley had been working on several matters with the overall TARP inspector general, Neil Barofsky, when his tenure was cut short. “It’s a serious gap in oversight,” Barofsky was quoted as saying. “It does impact what we do. Ed was a member of our TARP IG council and a partner in our investigative work.”
Meanwhile, Fannie Mae and Freddie Mac continue to burn through taxpayer money. Between them, they’ve already received over $100 billion in taxpayer money. And its not over yet: Fannie Mae for an additional $15 billion earlier this month. It’s a bad time and place to have no watchdog on duty.
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6 Responses to “Who’s Watching Fannie and Freddie? Oversight Agency Fires Its IG”
Leon, Durango, CO on November 16th, 2009 at 3:43pm said:
Oh! My God! That’s perfect for Obama’s Racketeering Influenced and Corrupt Administration. I can’t wait to see the Indictment. Oh, I’m sorry, I forgot: no indictment is very likely now that Ed can’t investigate.
I wish Obama had the decency of The Supranos, see the Mob used to have values. They wouldn’t sell out their Country to Communism.
Anthony, Central Indiana on November 16th, 2009 at 3:43pm said:
You’re surprised by this, how?
If anything, most websites, even like this one, should all be extrapolating all events like this one or not. If it has to do with LARGE sums of money, then who(m) would you expect to create misbegotten access to it ???
Like Charlie on “Two and a Half Men” — “I Understand”
Why aren’t the Repubs going after this Admin, like the Dems did with Spiro T Agnew? Run that by me again…
Did not Mr. Raines also garner $120 million in bonuses? Is he being made to re-distribute his wealth? Why would he be any different than GM?
People simply do not care enough to PAY ATTENTION in the Primaries and keep this ilk out of Government. When was the last time a People ordered their elected Official back home for hearings, etc.?
Every aspect of this is related and will continue to cause a ripple effect of harm across the Country. People have to have certain things taken away from them before they cry out….
Wonder what that will be….
Bobbie Jay on November 16th, 2009 at 3:43pm said:
Wherever government has proven to be dishonest and inefficient, GET EM’ OUT!!!!!!!!! My gosh, we’d be FREE AGAIN!!!!!!!!!!!! WE’LL HAVE MORE OF OUR MONEY!! limited government of ONLY necessity!!
It was just said by a government official, “households will have to watch their spending and budget their money carefully???!!!” IS HE REFERRING TO WELFARE RECIPIENTS? what spending??? Less spending on our basic necessities?
GOVERNMENT is spending our money like drunkin’ sailors in a brothel. Stop stealing OUR MONEY so we can SPEND IT!!! EFFICIENTLY!!!!! THIEVES!
Freedom of Speech, TX on November 16th, 2009 at 3:43pm said:
I will never defend so-called “white-collar” criminals like “Bernie Mad Off With The Money.
But, what this government and many lobbyists are doing to the American People is infinitely worse. It is not just the money, but the deceit and destruction of whatever trust and values are left.
Then I hear a certain administration official say “We need to trust what they are doing?”
Is there a legal licensed doctor out there who will volunteer services for conducting lobotomies?
Roger S., Ma. on November 16th, 2009 at 3:43pm said:
You mean, Fannie and Freddie were “doing their thing” even while the “watchdog” was “barking”? Well, was he barking? I didn’t hear much. Time to stop putting “human food” in his bowl: back to “dry dog food”! Ration the water, too!
Look, sub-prime loans and the like to poor mortgage risks is a loser’s game anyway it’s played. Whether that dog barked or wagged its tail made little difference. He might as well now be doing something else, even if only marginally more useful.
The real question is not, when will a successor be appointed, but how long until we (taxpayers) can “kiss good bye” to that congenitally corrupt couple, Fannie&Freddie; how long ’til we can send them a “wristwatch” each, gift-wrapped in their “retirement papers”? That will be the day to rejoice! Let’s start marking our calendars!
Dennis Hulse, Palmerston North, New Zealand on November 16th, 2009 at 3:43pm said:
Is the Asian Lion being gently gently ‘appeased’ out of their Fannie Mae and Freddie Mac investments so that when these two house of cards come down it’s truly “an all American affair”?. The reason why the Asian Lion has the largest International reserves thanks to currency manipulation is because it’s not being spent on local health, education and welfare programs to benefit all the people. They made investment decisions, let them cop it sweet like the rest of us. ….Kanwi