By Matthew Russell Lee
Following the Money, June 7 -- Even as the predatory lending meltdown continues to reverberate, from HSBC's scam foreclosures to Wells Fargo's discriminatory follow-through on the buildings that it's seized, from Wall Street to Washington the games continue.
Hedge funds that profited on the way down from the collapses, for example Paulson & Company, the Carlyle Group's Claren Road Asset Management and Perry Capital, are now buying up the preferred shares of Fannie Mae with a eye to taking it private.
They are buying in the markets, with little disclosure or oversight, and lobbying in DC. Also in the mix is James Millstein, "fixer" of AIG, now ready to cash in through, what else, Milstein & Company.
On the other side, Fannie Mae has become a grab-bag, with fees imposed on mortgages for entirely unrelated government goals. Who wouldn't want such a pinata?
Meanwhile a former Deutsche Banker who went to the Consumer Financial Protection Bureau, Raj Date, has now left to start his own firm to make money off the crisis. Fenway Summer, he spins it. He's said to advise McKinsey & Company too. The fox, it turns out, was watching the hen house.
Inner City Press previously dueled with Carlyle's spin-machine on Jay Powell's nomination to the Federal Reserve Board, here.
A nomination floated that please Obama's base, Mel Watt for FHFA, turns out to be trading chip, and Watt to be more pro industry even that the man in place. He represents Bank of America's district, the same Bank of America targeted for Wells-like disparities. The White House has been pitching: Mel because of who he is could do things that others could. Viewed through this PRISM, can you hear me now?
And so: what's been learned? Very little. As the song goes, it's all about the money. Watch this site.
