Wall Street Journal calls for investigation of 'friends of Angelo' loans
The Wall Street Journal -- correctly, it says here -- today is pushing Congress to investigate the "friends of Angelo" loan program, under which members of Congress including Sen. Chris Dodd (D-Conn.), at right, received special treatment and special loans from Countrywide Financial.
This is the same issue that brought down Obama campaign adviser Jim Johnson, another recipient of personal attention from Angelo Mozilo and Countrywide.
The Journal's editorial page this morning: "What did Countrywide CEO Angelo Mozilo receive –- or think he would receive –- in return for the friendly loans to politicians? And what did Mr. Mozilo get –- or think he would get –- in return for sweetheart loans to Fannie Mae CEOs Jim Johnson and Franklin Raines?" (Link credit: LA Biz Observed)
The Journal brushes off the so-called "ostrich defense" employed by another Countrywide borrower in the Senate, Kent Conrad (D-N.D.), who oddly told reporters he had never met Mozilo -- even though he had talked to Mozilo on the phone about a loan. "For what other reason, besides preferential treatment, would one call the CEO of the mortgage company? Does Mr. Conrad call August Busch IV when he wants to buy a six-pack?"
Also offended by Conrad's awkward dance of denial is one of my favorite real estate bloggers, Diana Olick of CNBC: "So am I to believe that these high-ranking senators and a former Fannie CEO didn’t read their loan documents to figure out that they were getting a special deal?? Did they not know enough about how mortgages work to figure it out? And why would Mozilo give these folks a special deal if he didn’t expect them to at least know about it??
"The senators are claiming they had no idea. Come on. I realize I’m supposed to accept that all those subprime borrowers didn’t understand their loans, but to accept that these well-educated leaders of our government didn’t -- well that insults my intelligence, and every borrower’s out there."
Your thoughts? Comments? E-mail story tips to peterviles@latimes.com.
Photo: AFP/Getty Images
The Portfolio.com reporter who broke the story estimated the benefit to Senator Dodd at $75,000 over two loans. It's a serious matter and Dodd's bailout bill is worth billions to Countrywide.
Posted by: Chris | June 16, 2008 at 05:14 PM
Wow! WSJ has blown this scandal wide open!
Ah-ha, that's why the housing bubble happened!
Bad Countrywide paid off Evil Democrats with friendly loans.
It takes clear-headed journalists at WSJ to uncover this source of this mess.
Before this revelation, I was blaming Wall Streeters for this mess.
Thanks for setting me straight WSJ!
Posted by: LA-renter | June 17, 2008 at 02:03 AM
We need to be more honest. Politicians accepting "VIP loans" is called receiving bribes. Offering special terms to politicians is called bribery. Invading foreign states to take their oil resources is called theft. Killing hundreds of thousands to bolster the Halliburton stock price is called murder.
Let justice commence.
Posted by: Omond | June 17, 2008 at 07:35 AM
You bloggers are WAY off base.
These people are the pillars of our society.
Look at how nicely Senator Dodd has his hair combed.
And he has a lapel pin also.
Yet still, you nasty, jealous, basement living bloggers don't show these fine politicians the trust and respect they deserve!
Posted by: Housing Bull Chorus | June 17, 2008 at 07:42 AM
There should be zero tolerance to gift-accepting by politicians, like there is zero tolerance to gift-accepting by employees of any quality company. It doesn't matter if there was any quid-pro-quo, implicite or explicite, the act of accepting a gift is the first step into corruption. Politicians are supposed to be the people's advocates, and if they double dip, they taint their integrity. All you Friends of Angelo, step down and ask Angelo for a job , not us.
Posted by: Peter T | June 17, 2008 at 08:25 AM
A question to ask yourself for all the people posting that this isn't that big of a deal. If this was republicans would you have the same viewpoint? Be honest with yourself.
Imagine this scenario. Republicans sponser a bill to bailout billions for subprime mortgage lenders. The same legislators are receiving favorable loans from the same companies they propose to bail out.
Under that scenario this would be front page news, the familiar media mantra "republicans are evil and corrupt" would be everywhere and there would be congressional investigations. Instead Harry Reid has no comment. Talk about double standards. Lol the next time democrats try chiding republicans about corruption.
Posted by: Cryos | June 17, 2008 at 11:15 AM
Dodd is a supporter of OBAMA! The same Obama who criticizes Republicans for being elitists!
WHAT HYPOCRITES!!!
Posted by: Joe | June 17, 2008 at 06:24 PM
The partisan squabbling over whether Dems or Reps are responsible for this nation's economy being in the toilet is laughable.
I swear - the collective intelligence of this country scares the crap out of me. No wonder all of our jobs are outsourced and we can't manufacture anything worth a damn.
Posted by: Blahblah | June 17, 2008 at 09:12 PM