MSM and Democrats Say: “Kiss Our Fannie”
Apparently political correctness is a player when it comes to reporting corporate scandals. The same MSM that had an “Enron Story of the Day” has all but ignored a $30 Billion scandal at the second-largest financial institution in the U.S. And why aren’t the Democrats crying foul about the scandal or its lack of coverage?
Just to put the scandal in perspective, the Enron accounting errors were in the neighborhood of $567 Million. Fannie Mae has admitted acounting errors of $11 Billion. Add to that the lost value in FNM’s stock price of about 27% and you have another $15+ Billion.
So why aren’t we hearing Peter Jennings leading with his “Fannie Mae Story of the Day”? Why isn’t “corrupt big business” the top story anymore? Why aren’t the “Ethics-concerned” Democrats calling for a full government investigation?
There are several possible reasons.
First, Newsweek reporter, Charles Gasparino attributes the lack of “Enron-style” coverage to Fannie Mae being a “politically correct” company.
“Well, Fannie Mae is a very politically corrupt — it may be politically corrupt, but it’s a politically correct company. I mean, they do all the things that, let’s face it, liberal journalists like, like put home mortgages out there for poor people. And so right now, beating up on Fannie Mae is kind of politically incorrect.”
So Fannie Mae isn’t really considered “big business” that the Left loves to demonize, despite being the second largest financial institution in the country. It’s not evil like energy companies that provide resources for lighting and heating our homes and driving our cars. It’s not evil because it’s partially financed by our friend, the federal government, and because it provides financial products and services to low-, moderate-, and middle-income families…. coincidentally whose new homes wouldn’t be warm or lighted if not for evil oil companies.
But is the story really being ignored by MSM?
Just doing a LexisNexis search produced 3,017 hits for “Enron” � 1,385 hits on CNN alone. During that nine-month time period, Enron disclosed that it had overstated its earnings by $567 million since 1997. A similar LexisNexis search was performed for the term “Fannie Mae” for those same media, from June 1, 2004, to March 1, 2005, again during the time the story was breaking. This search discovered a paltry 37 matches. Through those nine months, Fannie Mae was asked by its regulator to revamp its accounting practices, key executives resigned and about $11 billion in accounting errors were revealed.
Of course it is. And see where MSM networks like seeBS are focusing their time?
But there may be another reason MSM isn’t putting the full force of investigative journalism behind this one. You see, the embarrassed CEO that stepped down from Fannie Mae when the news hit…. is a Democrat. Maybe that’s why, in the midst of this breaking scandal, we’re not hearing reports of Raines’ golden parachute that allowed him to resign in shame and walk away with $30 Million… some of which is funded by the federal government, aka your tax dollars. Just think of all the “low-, moderate-, and middle-income families” that could’ve been provided housing with just part of that $30 Million.
Then there’s the reasons the Congressional Democrats who have been recently on the “Ethics prowl” aren’t calling for an all-out Enron-style investigation:
[John] Kerry confidant James Johnson ran Fannie Mae in the 1990s. Current CEO Raines ran the Office of Management and Budget under Clinton. Jamie Gorelick, the former Clinton deputy attorney general and 9/11 commission member, was vice chairman of Fannie Mae until last summer.
So it’s no wonder MSM deems this story unnewsworthy. It’s only a scandal some 15+ times larger than Enron, involving the second-largest financial institution that’s partially financed with tax dollars that’s been run by folks who financially support Democrats, are closely aligned with Democrat Presidential nominees, served in the Cabinet of a Democrat administration or hold top Democrat positions on Commissions important to national security.
I mean, where’s the news in that?