Rep Darrell Issa (R-CA) alerted members of the House Oversight Committee that four members of the House received VIP loans from sub-prime mortgage powerhouse Countrywide, according to the Wall Street Journal.
The loans contained artificially low interest rates along with other artificial sweeteners for the members. These loans were not available to the general public.
In a letter issued to members by Issa, who is chairman of the committee, he referred to the loans as possible ethics violations and "possible wrongdoing by Members of Congress."
Issa issued a subpoena to Bank of America, which the government forced to take over Countrywide during the TARP bailouts. Bank of America, which has been harassed and threatened by the Obama administration, likely gleefully turned over the documents to Issa about Countrywide’s VIP program.
Already the VIP loan program, run by Countrywide as an attempt to secure favor with top public officials, has killed the career of at least one member of Congress.
Senator Christopher Dodd, widely know for his misguided attempt at reforming the financial services laws- called Dodd-Frank- received loans from Countrywide for two houses that Dodd claimed as a primary residence.
And if you can figure out how you can divide two houses into one primary residence and get a whole number, then congratulations! You’re a Democrat.
They’ll probably ask you to write the next budget for the country or come up with a loan guarantee program for the DOE or count Democrat votes in Cook County, IL or file Geithner’s tax returns.
From the Los Angeles Times:
The oversight committee received about 100,000 pages of documents related to the VIP loan program after issuing a subpoena in February to Bank of America, which now owns Countrywide…. The VIP program also was known as "Friends of Angelo," a reference to Countrywide's former Chief Executive Angelo R. Mozilo.
The LA Times reports that Countrywide made 173 loans to employees of Fannie Mae and Freddie Mac, “which purchased many of the company's loans.”
Additionally about 30 Senate employees were given loans under the VIP program according to the Wall Street Journal.
"Countrywide orchestrated a deliberate and calculated effort to use relationships with people in high places in order to manipulate public policy and further their bottom line to the detriment of the American taxpayers even at the expense of its own lending standards,” said Issa as reported by The Hill at the time of the subpoena in February, 2011. "The American people have a right to know the totality of who participated in the Countrywide’s VIP program and what they did in return for access to it.”
This is probably more than just a fishing expedition for Issa, too. The man, who more than anyone else, has brought Eric Holder to heel, can likely make a big name for himself as chairman of the oversight committee in the age of the socialist payoff to business and investors; even if Issa is, you know, a raaaaaacist.
And here’s why:
The Senate investigated the VIP loan program and gave the participants clean bills of health. However, the Senate ethics committee was and is controlled by Democrats.
We know that Democrats can’t do math correctly, but we know that they can at least spell the word “cover-up.” They have made it an art form. That worked great as long as they controlled the executive branch and the legislative branch.
Issa however has taken away the punch bowl.
Look for the House Oversight Committee to press the case under a Republican majority as the GOP makes a pitch for taking over the House and the Senate in 2012.
Issa likely suspects that Americans, once informed, will think the cover-up has been as bad as the crime.
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