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Getting to Know the Future White House Chief of Staff

November 8, 2008

If you listened to the news media, you would know that Rahm Emanuel has “sharp elbows” and no middle finger (his mother should have told him that if he used something too much, he’d break it). Actually Emanuel has an amazing family. His brother is Ari Emanuel, the Hollywood agent who Jeremy Piven’s character on Entourage is based. The third Emanuel brother is Zeke Emanuel, a doctor who is pretty high up in the NIH.

What the news media has failed to mention is that Rahm Emanuel was on the board of Freddie from 2000 to 2002, when the company misreported its profits in the billions:

President-elect Barack Obama’s newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot “red flags,” according to government reports reviewed by ABCNews.com.

According to a complaint later filed by the Securities and Exchange Commission, Freddie Mac, known formally as the Federal Home Loan Mortgage Corporation, misreported profits by billions of dollars in order to deceive investors between the years 2000 and 2002.

Emanuel was not named in the SEC complaint (click here to read) but the entire board was later accused by the Office of Federal Housing Enterprise Oversight (OFHEO) (click here to read) of having “failed in its duty to follow up on matters brought to its attention.” 

Emanuel’s silence during this period helped to facilitate fraud by artificially maintaining freddie’s price to investors. This was prior to Sarbanes-Oxley so Emanuel did not need to sign off on the fraud. Guilty as sin, free as a bird as Billy Ayers would say. A strange turn of events for an administration whose red carpet on the road to the White House was littered with the ashes of those misled into believing that fannie and freddie were stable. 

In addition, the Business and Media Institute reports: 

“Clinton’s going-away gift to Emanuel was a seat on the quasi-governmental Freddie Mac board, which paid him $231,655 in director’s fees in 2001 and $31,060 in 2000,” Lynn Sweet wrote for the Chicago Sun-Times on Jan. 3, 2002.

During the time Emanuel spent on the board, Freddie Mac was plagued with scandal involving campaign contributions and accounting irregularities. Freddie Mac and its sister organization Fannie Mae were taken over by the federal government in September 2008 after years of mismanagement and scandal. Treasury Secretary Henry Paulson put the two beleaguered GSEs into a conservatorship, stripping common stock shareholders of their rights to govern the companies. …

“Freddie Mac was accused of illegally using corporate resources between 2000 and 2003 for 85 fundraisers that collected about $1.7 million for federal candidates,” an Associated Press story from April 18, 2006 said. “Much of the fundraising benefited members of the House Financial Services Committee, a panel whose decisions can affect Freddie Mac.”

And, since his successful run for the House of Representatives in 2002, Emanuel has been the beneficiary of campaign cash from Freddie Mac and its sister organization Fannie Mae – $51,750 according to the Center for Responsive Politics Web site OpenSecrets.org.

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3 comments

  1. […] Getting to Know the Future White House Chief of Staff By Yossarian President-elect Barack Obama?s newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to … Trust, But Verify – https://trustbutverify.wordpress.com/ […]


  2. Great stuff. Can’t wait to see what sort of polarizing figures he stocks his cabinet with. I hear John Kerry is the lead choice for Secretary of State. That’s John “PurpleHeart” Kerry.


  3. […] House Chief of Staff « Trust, But … Posted in November 8th, 2008 by in Uncategorized Getting to Know the Future White House Chief of Staff « Trust, But … Getting to Know the Future White House Chief of Staff By Yossarian President-elect Barack Obama?s […]



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