Conflict

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Fox News' Sammon ignores contrary evidence in suggesting that Rep. Frank allowed personal relationship to affect his oversight of Fannie Mae

On the October 6 edition of Fox News' The O'Reilly Factor, deputy Washington managing editor Bill Sammon suggested that Rep. Barney Frank (D-MA) allowed his relationship in the 1990s with Herb Moses, a Fannie Mae official at the time, to improperly influence his conduct as a member of the House Financial Services Committee, which was responsible for oversight of Fannie Mae. Sammon was echoing and amplifying claims he had made in an October 3 article on FoxNews.com, in which he asserted that "[u]nqualified 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 part 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. While Sammon pointed to an example of Frank opposing a regulation on Frannie Mae, Sammon did not note in his article or on The O'Reilly Factor that 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. In his FoxNews.com article, Sammon wrote: "Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical." Sammon offered two "critics": Gainor, identified as "vice president of the Business & Media Institute" and "a T. Boone Pickens Fellow," and an unnamed "top GOP House aide" who "agreed" with Gainor. In fact, the Business and Media Institute is a division of the conservative Media Research Center, and the full name of Gainor's fellowship is the "The Boone Pickens Free Market Fellow for the Media Research Center." Additionally, Sammon did not explain why he granted anonymity to a Republican aide to criticize Frank, a Democrat. Moreover, while Sammon reported that these critics were "skeptical" of Frank and Moses' statement that "they took pains to avoid any conflicts of interest," Sammon did not quote either source citing any instance of alleged impropriety on Frank's part. Beyond these "critics," Sammon wrote in his article that "[a]lthough Frank now blames Republicans for the failure of Fannie and Freddie, he spent years blocking GOP lawmakers from imposing tougher regulations on the mortgage giants." Sammon continued: "In 1991, the year Moses was hired by Fannie, the Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for two- and three-family homes, even though they were defaulting at twice and five times the rate of single homes, respectively." Sammon made the link more explicitly during his appearance on The O'Reilly Factor: BILL O'REILLY (host): Did Frank basically do anything wrong? Could -- is there a conflict of interest or can -- is there a trail back that says, "Barney Frank did this wrong"? [...] But did he do anything wrong? SAMMON: I don't think he did anything technically illegal. You can quarrel with his judgment in blocking people from imposing regulations on Fannie and Freddie. For example, there was one example where they wanted to put in a regulation that would tighten up mortgage rules, and Barney Frank was arguing that they ought to be loosened for, for example, two-family homes and three-family homes, which had -- However, Sammon provided no explanation for how Frank's "push[ing]" Fannie Mae to do something it was reportedly resisting demonstrated favoritism toward Fannie Mae or bore any relation to his relationship to Moses. Indeed, the November 22, 1991, Globe article that Sammon cited does not mention Moses at all. Nor did Sammon note that the Globe reported that Frank was not the only public official asking Fannie Mae to cover two- and three-family loans. In the second paragraph of the article, the Globe reported that "representatives of [then-Boston] Mayor [Raymond] Flynn and [then] Rep. Joseph P. Kennedy 2d (D-Mass.)" were involved in negotiations with Fannie over covering such loans, while mentioning Frank later in the article as also having been involved in discussions. From the Globe article (retrieved from the Nexis database): The federally chartered mortgage company Fannie Mae yesterday agreed to modify its rules restricting purchases of two-family and three-decker homes -- rules that housing advocates contend unfairly exclude low- and moderate-income families from buying homes in Boston. After a nearly three-hour meeting with members of the Home Buyers' Union, a local advocacy group, and representatives of Mayor Flynn and Rep. Joseph P. Kennedy 2d (D-Mass.), Fannie Mae officials agreed to substantially alter rules to allow what one termed "hundreds if not thousands" of buyers a chance to own two-family homes and three-deckers. The two sides failed to agree on exact percentages of debt that buyers will be allowed to carry, but Fannie Mae officials agreed to return to the bargaining table in two weeks, according to members of the union. Earlier yesterday the officials, trailed by housing advocates and representatives of elected officials, toured a two-family home on Dorchester's Downer Avenue. The multi-billion dollar Federal National Mortgage Association buys mortgages made by area banks so as to free up capital to allow banks to make more loans. But in recent years, Fannie Mae has not fully counted rental income from multi-family homes against the buyers' debt burden -- thereby refusing to purchase mortgages made to all but high-income buyers. Fannie Mae national spokesman David Jeffers said yesterday that the mortgage company restricted purchases of mortgages on multi-family homes after it saw many such mortgages go into default during the real estate slowdown. He said the default rate on mortgages on two-family homes is twice that of single-family homes, and the rate for three-deckers is five times the rate for single-family dwellings. But Jeffers said that after discussions with area homeowners, housing advocates, Kennedy and Rep. Barney Frank (D-Mass.), Fannie Mae officials agreed to purchase the mortgages made under the state's "soft second" program, the primary source of mortgages for first-time homebuyers of low and moderate means. Moreover, Sammon did not mention in either his FoxNews.com article or during his O'Reilly Factor appearance that earlier in 1991, Frank voted in favor of legislation that increased government regulation and oversight of Fannie Mae and Freddie Mac. On September 30, 1991, Frank voted for a bill to create a new regulatory agency to oversee Fannie and Freddie, which were government-sponsored enterprises until they were taken over by the federal government on September 8, 2008. According to the bill's Congressional Research Service summary, the bill "[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." According to an August 5, 1991, column by the Boston Globe ombudsman, Moses was already working for Fannie Mae in August 1991. In October 1992, Frank voted for the Housing and Community Development Act of 1992, which created the Office of Federal Housing Enterprise Oversight (OFHEO). According to the Congressional Research Service summary of the bill, OFHEO 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. In addition, on The O'Reilly Factor, Sammon suggested that Frank hadn't "declare[d] the possibility of a conflict of interest." "That didn't happen," Sammon said. But in his FoxNews.com article, Sammon wrote that "[b]oth Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest." From the October 3 FoxNews.com article titled "Lawmaker accused of Fannie Mae Conflict of Interest": 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. Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannie's assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie. Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical. "It's absolutely a conflict," said Dan Gainor, vice president of the Business & Media Institute. "He was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive. How is that not germane? "If this had been his ex-wife and he was Republican, I would bet every penny I have -- or at least what's not in the stock market -- that this would be considered germane," added Gainor, a T. Boone Pickens Fellow. "But everybody wants to avoid it because he's gay. It's the quintessential double standard." A top GOP House aide agreed. "C'mon, he writes housing and banking laws and his boyfriend is a top exec at a firm that stands to gain from those laws?" the aide told FOX News. "No media ever takes note? Imagine what would happen if Frank's political affiliation was R instead of D? Imagine what the media would say if [GOP former] Chairman [Mike] Oxley's wife or [GOP presidential nominee John] McCain's wife was a top exec at Fannie for a decade while they wrote the nation's housing and banking laws." [...] Although Frank now blames Republicans for the failure of Fannie and Freddie, he spent years blocking GOP lawmakers from imposing tougher regulations on the mortgage giants. In 1991, the year Moses was hired by Fannie, the Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for two- and three-family homes, even though they were defaulting at twice and five times the rate of single homes, respectively. Three years later, President Clinton's Department of Housing and Urban Development tried to impose a new regulation on Fannie, but was thwarted by Frank. Clinton now blames such Democrats for planting the seeds of today's economic crisis. "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," Clinton said recently. From the October 6 edition of Fox News' The O'Reilly Factor: O'REILLY: Now, not only did the congressman have oversight on Fannie Mae for the past two years, but back in the 1990s, he had an affair with a guy named Herb Moses, an executive at Fannie Mae at the time Frank was on the House Banking Committee. Joining us now from D.C., Fox News Washington deputy editor Bill Sammon. So, why should we care, 10 years ago -- that's when -- and I guess it was a long-term relationship between these two men. Why should we care about that? SAMMON: Well, because that's when the seeds of today's crisis were sown, Bill. I mean, Barney Frank on your show talked about how he supported, you know, reform legislation 2007-2008. It was too late by then. I mean, by -- you know, by the time the legislation that kicked in July 30th of this year was passed, Fannie and Freddie stocks had dropped 80 percent so far this year. So, the housing market was already in a meltdown. We're talking in my story about -- and what you're referring to with Barney Frank and his relationship with Herb Moses -- that happened during the 1990s when Republicans and even some cases President Clinton was trying to put regulations on Fannie and Freddie. Barney Frank was backing off these efforts. Meanwhile, his partner was an executive in Fannie Mae, and he was charged with make-- with basically loosening mortgage regulations. O'REILLY: OK. Now, Frank at the time was on the committee but not the chair. And, you know, he had a voice, but he's a voice of many. When he gets to be the chair in 2007, he says -- Frank says, "Hey, I tried to get something done. I put this oversight thing in. It finally got passed, but it just took so long that it didn't have any effect. So, don't blame me. I didn't do anything wrong." And you say? SAMMON: Well, I say, again, a little too little, too late. And again, imagine if the shoe were on the other foot. Imagine if a Republican, say, Larry Craig, had a gay partner on the -- a federal -- on the agency that he was charged with regulating. Even if he only had a voice, even if he wasn't the chairman, wouldn't it behoove that member to recuse themselves or at least declare the possibility of a conflict of interest? This didn't happen. Barney Frank continued to have this relationship and continued to work on this committee. At the time, it was called the Banking Committee. And the press didn't raise an eyebrow. If you switch that around and put in a Republican -- even if it wasn't a gay relationship. So let's say a Republican had a mistress or a wife or a girlfriend on an agency that Republican was supposed to be regulating. The press would go ballistic. But because it's Barney Frank and because it's a Democrat and because it's the whole gay thing, they have not touched it because they consider it radioactive. O'REILLY: Did Frank basically do anything wrong? Could -- is there a conflict of interest or can -- is there a trail back that says, "Barney Frank did this wrong"? Now, I hold him accountable because he won't admit that he did a poor job in overseeing. And then, in July -- and we played this bite -- in July, he basically put a happy face on it. "Oh, I mean, it's not the best investment, but it's solid, and we're going forward" -- blah blah blah. Bull. But did he do anything wrong? SAMMON: I don't think he did anything technically illegal. You can quarrel with his judgment in blocking people from imposing regulations on Fannie and Freddie. For example, there was one example where they wanted to put in a regulation that would tighten up mortgage rules, and Barney Frank was arguing that they ought to be loosened for, for example, two-family homes and three-family homes, which had -- O'REILLY: Yeah, he wanted more money to go to poor and lower-middle-class people, so we know that was -- he admitted that. All right.

LA Times cited Palin's "reject[ion]" of Biden for "blame game" response without noting Ifill's question eliciting it

In an October 3 Los Angeles Times article, staff writers Cathleen Decker and Michael Finnegan asserted that, during the vice-presidential debate, "[a] discussion of Israel sparked one of the night's most spirited exchanges -- even as both candidates pledged their unstinting support for the longtime U.S. ally -- by spinning into a debate over accountability versus finger-pointing." Decker and Finnegan added that Sen. Joe Biden called President Bush's policies "an abject failure" and that Gov. Sarah Palin "reject[ed] the way Biden depicted Bush's policies with her line about the 'blame game.' " However, Decker and Finnegan did not note that Biden's characterization of President Bush's policy regarding Israel came in response to moderator Gwen Ifill's question specifically asking the candidates to assess the Bush administration: "What has this administration done right or wrong -- this is the great, lingering, unresolved issue, the Israeli-Palestinian conflict -- what have they done?" Decker and Finnegan also quoted Palin disputing Biden's claim that Sen. John McCain opposed "allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe." While Decker and Finnegan suggested that Palin "got lost in the thickets of rhetoric" when discussing bankruptcy, and noted that she quickly changed the subject to energy, they did not note that, according to an ABCNews.com article posted shortly after midnight ET, the McCain campaign stated that "Palin misstated McCain's position" on bankruptcy reform. From the ABCNews.com article: The Alaska governor incorrectly made it sound like McCain supports giving bankruptcy judges the power to rewrite mortgage payment terms on first homes. He doesn't. The McCain campaign confirms to ABC News that Palin misstated McCain's position. "No, that is what is called the cramdowns, which is so objectionable that Obama didn't even want it jammed into the stabilization bill," said McCain spokesman Brian Rogers when asked if McCain supports giving bankruptcy judges the power to re-adjust the interest rate and principal to help people stay in their homes. Palin's mistake came when the debate's moderator asked her if Biden was right in thinking that she and McCain oppose giving bankruptcy judges this new power. During the debate, Biden said: Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe. That would keep people in their homes, actually help banks by keeping it from going under. But John McCain, as I understand it -- I'm not sure of this, but I believe John McCain and the governor don't support that. There are ways to help people now. And there -- ways that we're offering are not being supported by -- by the Bush administration nor do I believe by John McCain and Governor Palin. Ifill then asked "Governor Palin, is that so?" to which Palin responded: "That is not so, but because that's just a quick answer, I want to talk about, again, my record on energy versus your ticket's energy ticket, also." From the October 3 Los Angeles Times article: Palin occasionally got lost in the thickets of rhetoric, as she had in a series of high-profile interviews in the last week. "That is not so," she said of Biden's statement that McCain did not support provisions to help homeowners facing bankruptcy. "But that's just a quick answer. I want to talk about, again, my record on energy versus -- your ticket's energy -- ticket, also, I think that this is important to come back to, with that energy policy plan, again, that was voted for in '05." [...] A discussion of Israel sparked one of the night's most spirited exchanges -- even as both candidates pledged their unstinting support for the longtime U.S. ally -- by spinning into a debate over accountability versus finger-pointing. Biden condemned Bush's policy toward Israel as an "an abject failure," asserting the president had emboldened Israel's enemies and waited too long into his administration to become engaged in peace talks. "We will change this policy with thoughtful, real, live diplomacy," said Biden, who suggested that "no one in the United States Senate has been a better friend to Israel than Joe Biden." Palin responded by hailing her rival's support for Israel and rejecting the way Biden depicted Bush's policies with her line about the "blame game."

iTunes Store to Remain Uninterrupted as Royalty Rates Remain Unchnanged

Following up on a story from earlier in the week, Apple will keep its iTuens Store doors open and avoid a potentially drawn out conflict over music royalties. According to a statement released by the Copyright Royalty Board on...

Island Living - Room Available Now in 4bd/2.5ba TI Townhouse (treasure island) $620

***Our living room and back yard have the best view of the bay you'll find anywhere--well, certainly for this cheap!*** The nitty-gritty: We will have a Bay side room available October 1. Rent is $620 with a $575 deposit. T.v. + cable internet + washer/dryer rental are $35/mo.--No other utilities! You will need to sign the lease with Villages of Treasure Island. It’s a $38 money order for the application and credit check—they’re mostly looking for lack of eviction history and verifiable current income The lease is for a year, renewed in September, but we work on a month to month basis within the household. It’s easy & there’s no fee for removing a roommate from the lease when we need to. House perks & info: an in-unit washer & dryer dishwasher, disposal a generously sized kitchen furnished common areas, shared hall closets/storage a two-car carport + some available street parking a mostly landscaped backyard with the most gorgeous sunset view. a resident cat who will love you if only you feed him, give him treats and open the door for them at his whim (he’s a cat, what do you expect?!). Who we are: three men and a woman; a student, a career services professional, home care provider, a restaurant waiter/manager + a whole mess of creative endeavors a couple shares the master bedroom you'd share a full bathroom with two people—rarely a conflict, there’s also a half bath downstairs aware of being quiet to accommodate varied work/sleep schedules fragrance free—one roommate has a severe fragrance allergy, so no cologne/perfume or other scented products can be used in the house we’ve been known to hang out together, eating dinner or watching t.v., but we do have our own lives and our own schedules we *voluntarily* share chores around the house and pitch in to buy common shared items like eggs, butter, paper towels, trash bags, etc. we want our house to be a comfortable place to come home to, where people know how to be respectful roommates in a shared living environment. we do enjoy having friends over from time to time, are 420 friendly, like to host the occasional party or bbq and get front row seats for fireworks and the Blue Angels! The most important things we're looking for in a housemate: we can be compatible, respectful and have regard for each other that you have a reliable & steady income we'd guess you're somewhere between 28-40 upon meeting you someone who enjoys the benefits of living in/around S.F. likes cats has had successful previous experience living in roommate households thinks fog can be beautiful will talk and work things out rather than holding grudges and blowing up likes living in a clean place but can tolerate a small mess too has a well-developed sense of personal responsibility If the words of this ad speak to you, please drop me an email or call and let me know some basics about yourself and what appeals to you about this housing prospect. If you’ve tried to contact me in the past few days, please try again—this week’s been particularly hectic for several of us. Thanks! Jocelyn 510-579-3338

Congo rebel 'to expand conflict'

Rebel Laurent Nkunda says he wants to "liberate" the whole of DR Congo, expanding his rebellion from the east.

Ex-Yugoslav army chief on trial

Ex-Yugoslav general Momcilo Perisic goes on trial at the UN tribunal, accused of war crimes in the 1990s Balkan conflict.

Free Investment Property Lists - Buyer Broker

Bremner Real Estate, a Buyer's Broker We have created lists of all the available investment property in Northern California, including analysis of price per square foot, net lease rate, occupancy, etc. Call (415-234-6093), send an email (johnpbremner@gmail.com), or visit our website (bremnerinvestments.com) to obtain a free analyzed list of all available commercial property in Northern California. Indicate whether you wish Industrial, Office, Shopping Centers, Retail or Multi-Family. (Principals Only, Please) Bremner Real Estate specializes in commercial net leased investment property, and represents Buyers only. Some of the benefits of working with a Buyers' Broker are: * The Buyer will have access to ALL the properties available, not just the broker’s listings! * The Buyer will obtain the best possible price and terms because the Buyer’s Broker represents the Buyer only and is committed to assisting the Buyer. * Save Money. A recent study showed that Buyers represented by a Buyer’s Broker saved over 5% of the purchase price over Buyers represented by a traditional broker. * The Buyer’s Broker has no conflict of interest – BRE represents the Buyer exclusively. Even if you’ve already found a property that you like, it’s a good idea to retain BRE to represent you in the purchase, so you’ll have someone on your side! It costs you nothing, and it’s your right! The principal of Bremner Real Estate is John P Bremner JD, who has more than twenty years experience in commercial real estate, as both a real estate broker, a principal and as an attorney. You will deal with him directly, and will receive his full commitment to helping your find, negotiate and close a great deal! John P Bremner Bremner Real Estate 415-234-6093 johnpbremner@gmail.com www.BremnerInvestments.com

California is its own kind of place

California is its own kind of place There is an on going conflict at Torrey Pines, near San Diego, California and one forum for that conflict is the vote for USHPA Regional Director. Bob Kuczewski, founder of Torrey Hawks, is running against the incumbent, David Jebb, who has the hang gliding and paragliding concession at Torrey Pines.  But what is really funny (as in strange) is a guy who is also running "against" these two. His name is Pete Michelmore. Here is his "official" statement from his campaign for the Region 3 Director position: I would like to endorse Dave Jebb as Regional Director for Region 3 again this year. Dave has done an outstanding job for the members of region 3 over the years and I feel is the best candidate for the job. I have known Dave for over 15 years now, and he is not only an exceptionally nice person, he is fair, and trustworthy. His character is as flawless as his friendship to his fellow pilots. Dave is truly a born leader and I'm proud to have him lead Region 3 as USHPA Director again this year. Why exactly is this guy running? More at the Oz Report forum on this. Discuss California is its own kind of place at the Oz Report forum   link»

Iraq remains 'locked in conflict'

The US says Iraq remains locked in a communal struggle, despite dramatic security improvements.