By Nicholas Contompasis
This news is big and shouldn't be ignored by Americans. Daniel Mudd, the former chief executive officer of Fannie Mae, and Richard Syron, ex-CEO of Freddie Mac, were sued by the U.S. Securities and Exchange Commission for understating by hundreds of billions of dollars the subprime loans held by the agencies.
Now, this isn't news to myself and other informed financial experts, but the fact that finally after almost two decades the fleecing of the American taxpayer is about to be investigated for civil fraud, not criminal fraud.
Keep in mind an investigation could take months and even years if done properly, which would mean that after the 2012 elections the Tea Party led Congress and most likely a Republican President could expand this investigation to criminal charges.
When that happens the net should be flung far and wide to ensnare the many Democrat Congressmen and women, including Former Senators Frank of Massachusetts and Dodd of Connecticut who have suddenly and conveniently retired.
Even if there is no change in regime this investigation will embarrass and include many elected officials now dwelling in Congress, retired and in Governors offices, New York specifically.
Most inside the beltway know who the main political players are. They took billions of taxpayer dollars and they were and are capable of anything to maintain their power.
As a financial and political analyst I've followed the many financial atrocities of these two organizations. But, on April 22, 2009 when the Dow Jones Average dipped below 8,000 and there were the beginning cries for heads at Fanny and Freddie, the acting CFO of Freddie, David Kellermann, 41, was found dead in his Vienna, Virginia home early that morning. Police said Kellermann's death was an apparent suicide. But was it?
There was talk of a note left by Kellermann and a thorough autopsy would be performed. That would take weeks! Why weeks? Also where is the note and what did it say? This information has not yet been released. Why? With only four months in office, the new President from Chicago Obama, sure didn't need a Democrat led scandal of the most massive dimensions the nation has ever seen.
Needless to say, the timely demise of a sixteen year veteran of Freddie Mac seemed unusual to say the least. The timing of his death is still a mystery to many over these two trying financial years with no real answers.
Maybe today's announced investigation will finally put to bed what really happened to David Kellermann.
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