(Treas Sec) Snow Says He Unknowingly Held Fannie Mae, Freddie Mac Bonds

[Newsjock]

http://quote.bloomberg.com/apps/news?pid=10000103&sid=agohOH2XbgQE&refer=news_index

May 26 (Bloomberg) -- Treasury Secretary John Snow was unaware he owned about $10 million in Fannie Mae and Freddie Mac bonds for 15 months, a period when he was lobbying Congress to create a tougher regulator for the two largest mortgage financiers, the department said.

On Feb. 3, 2003, and Feb 4, 2003, an investment adviser hired by Snow bought $10.87 million in 10 bonds of different maturities issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks, Treasury documents show. The error wasn't discovered until May 10, 2004, as Snow was preparing his 2003 financial disclosure form.

Snow has been the Bush administration's point man in pushing lawmakers for a regulator for government-sponsored enterprises such as Freddie Mac and Fannie Mae, offering to house the new overseer at the Treasury.

... Treasury spokesman Rob Nichols said Snow's ownership of the GSE debt was ``very regrettable'' because he asked his adviser to invest assets he was restructuring to divest stocks that might present him with potential conflicts of interest. Snow's assets, disclosed in a range, last year may be worth as much as $150 million.

more

[UpInArms]

1. good lord folks!

this man has a spare $10 million that he "didn't know" about being invested in securities that he was lobbying for?

Give me a freakin' break!

Conflict of interest in this mal-administration? Oh let's go down memory lane for a moment:

Memorandum
January 20, 2001

MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND
AGENCIES

SUBJECT: Standards of Official Conduct

Everyone who enters into public service for the United States has a duty to the American people to maintain the highest standards of integrity in Government. I ask you to ensure that all personnel within your departments and agencies are familiar with, and faithfully observe, applicable ethics laws and regulations, including the following general principles from the Standards of Ethical Conduct for Employees of the Executive Branch:

(1) Public service is a public trust, requiring employees to place loyalty to the Constitution, the laws, and ethical principles above private gain.

(2) Employees shall not hold financial interests that conflict with the conscientious performance of duty.

(3) Employees shall not engage in financial transactions using nonpublic Government information or allow the improper use of such information to further any private interest.

(4) An employee shall not, except as permitted by applicable law or regulation, solicit or accept any gift or other item of monetary value from any person or entity seeking official action from, doing business with, or conducting activities regulated by the employee's agency, or whose interests may be substantially affected by the performance or nonperformance of the employee's duties.

(5) Employees shall put forth honest effort in the performance of their duties.

(6) Employees shall not knowingly make unauthorized commitments or promises of any kind purporting to bind the Government.

(7) Employees shall not use public office for private gain.

(8) Employees shall act impartially and not give preferential treatment to any private organization or individual.

(9) Employees shall protect and conserve Federal property and shall not use it for other than authorized activities.

(10) Employees shall not engage in outside employment or activities, including seeking or negotiating for employment, that conflict with official Government duties and responsibilities.

(11) Employees shall disclose waste, fraud, abuse, and corruption to appropriate authorities.

(12) Employees shall satisfy in good faith their obligations as citizens, including all just financial obligations, especially those -- such as Federal, State, or local taxes -- that are imposed by law.

(13) Employees shall adhere to all laws and regulations that provide equal opportunity for all Americans regardless of race, color, religion, sex, national origin, age, or handicap.

(14) Employees shall endeavor to avoid any actions creating the appearance that they are violating applicable law or the ethical standards in applicable regulations.

Executive branch employees should also be fully aware that their post- employment activities with respect to lobbying and other forms of representation will be bound by the restrictions of 18 U.S.C. 207.

Please thank the personnel of your departments and agencies for their commitment to maintain the highest standards of integrity in Government as we serve the American people.

GEORGE W. BUSH

[Alerter_]

32. Wingnuts want to destroy Fannie and Freddie, too "socialist"

The Wall Street Journal, the Corporatists, and the Wingut Libertopians want to destroy Fannie and Freddie, two quasi-socialist, "public private parternships" that have worked pretty well. They don't fit into anyone's ideological frameworks, but pragmatically they work - as long as we maintain our economic leverage in the global markets, which Bush is try hard not to do.

[jpgray]

2. 'US Treasury Secretary Can't Keep Track of Own Finances'

Right.

[The Backlash Cometh]

3. Not much of a point man for regulation there.

Instead, it looks like blunt trauma.

[NNN0LHI]

4. Must have just slipped his mind? n/t

[WannaJumpMyScooter]

5. You know, I had 10million or so laying around here on my

desk, but I can't find it now.

Anyone see it?

[Ripley]

11. Over here...I see it over here in my rose bush...

No wait, that's a centrifuge. Sorry. :dunce:

[Newsjock]

14. If I had been drinking a soda just now ...

... it would already be soaking through the keyboard after it flew through my nostrils. Ha!

[Eye and Monkey]

17. Not a centrifuge. Gloves, covered in blood. Do they fit OJ?

[MaineDem]

6. Call me crazy but I don't believe him

I'm just a little leery of this. I know, I'm the only one with doubts, right? /sarcasm off

Sheesh! How stupid do they think we are?

[Isere]

7. SPECIAL PROSECUTOR!

Hey! Special Prosecutor!!!! We need one now!

Mike Espy got one for taking two football tickets, didn't he?

[PeaceProgProsp]

8. With 10 million at stake, you just know there's no trail.

They didn't make the mistake of talking about it to their neighbors, or asking their secretaries to delete entries on diaries.

There will be no witnesses.

It'd be nice if there were.

What's good for Martha Stewart should be good for the gander. People should take this about 2000 times more seriously than they took Martha Stewart's sale of 50,000 bucks worth of Imclone.

[AlCzervik]

9. I'm sure he's been fighting to keep interest rates low

because once they get raised the bond market goes down. Way to be ethical john. DOH!

[maddezmom]

10. oh okay...unaware, all is forgiven

:eyes: Is there 1, just 1 honest person in this misadministration???

[AlCzervik]

12. NO

[UpInArms]

15. his predecessor was fairly honest - Paul O'Neal -

but he was still a slimy icky thing - and they canned his ass.

[MisterP]

28. remember when Sen. Byrd made him cry?

[Eye and Monkey]

18. "I'm not corrupt, just dumb. Let me handle the nation's finances, okay?"

[Just Me]

13. WAH,....Someone please help me get my mouth closed!!!!

My lower jaw seems to have suddenly become too heavy to lift back up off the floor.

Are you fucking kidding me. A TREASURY SECRETARY has the GALL to spew such total BS and expect people to BELIEVE him!!!

Oh,....OH,....OH MY GOD!!!

This is so totally unreal. I just,...I want a valium. No, actually,...I want,...I want to slap that man's face, repeatedly!!!

[happyending]

16. ?

How is it possible for this to go unpunished?

[Eye and Monkey]

20. Everything is for the best in this the best of all possible worlds -

Welcome to the New World Order.

[struggle4progress]

23. New World Odor: It Stinks. eom

[robbedvoter]

19. Glad we got Martha Stewart, though!

[notadmblnd]

26. If only it had been 10 million

she would have been forgiven. Obviously the poor woman didn't belong to the right club.:shrug:

[TahitiNut]

21. Easy solution: TAKE IT

If he couldn't keep track of it, then he'll never miss it anywhere nearly as much as thousands of veterans could use the health care.

Fuck Snow and the toad he rode in on!

[Blasphemer]

22. LMAO...

Honestly... it is pure comedy. This is as believable as the Bush pretzel story :eyes:

[koopie57]

24. this is so obscene

he knew what he was doing and knew he could probably pull down a bundle before he got caught and had to say excuse me. He is so money hungry that he doesn't care if he looks ridiculous and he uses his job to feed off the other guy. Meanwhile, people are living hand to mouth if they are lucky and the veterans, military and their families are on food stamps or waiting for health care. He is nothing more than a piece of sh*t. He is not a man, he is a worthless, useless, pathetic excuse for a turd.

[Beetwasher]

25. I Was Unaware Murder Was Illegal

That's a good excuse then too, right?

[MasonJar]

27. No wonder Paul O'Neill got canned; he was actually trying to do

an honest job. I think that this is my 1000th post. Yea!

[TankLV]

29. He's been trained by the best in the business.

Karen - I'm impartial and can too be head of the election team and just happen to vote always in favor of my charge - Hughes.

The Dick - I don't have to fucking divest my Halliburton Stock while I give myself a blowjob with more taxpayers' money - Cheeney.

Really good advice.

[Straight Shooter]

30. Ownership of the GSE debt was "very regrettable"

No. Things that are "very regrettable" are saying something snarky that you don't really mean because you're feeling grouchy, or flirting too much with someone that your best friend is seeing, or yelling at your dog because it ran through your house with muddy paws, or accidentally bouncing a check, or any of a number of stupid human behaviors that you wish you could take back but really are just part of being human.

No. What Snow has done is reprehensible.

[GoddessOfGuinness]

31. "Snow Job" redefined...

Even if he was unaware...
What the hell kind of Treasury Secretary doesn't keep track of his assets?

[0007]

33. It was probably 20 million, Snow is a creep if ever there was one!

[yellowcanine]

34. Isn't it great when you lhave so much do-re-me that you can lose track

of almost $11 million and not even miss it? Only in America! What a country!

[truthisfreedom]

35. goofball.

[crossroads]

36. Are all members of this administration thieves?

Or... just the ones who've got caught?
Must be a Republican requirement thingey...
:eyes:

[NashVegas]

37. Pure Coincidence, Pure Coincidence, Pure Coincidence

http://www.nytimes.com/2004/05/28/business/28snow.html

The Treasury Department said Mr. Snow became the owner of $10.87 million in 10 bonds of different maturities issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks on the day he was sworn in as secretary, Feb. 3, 2003, and on the following day.

=====

Freddie Mac Understated Its Earnings by $5 Billion
By JONATHAN D. GLATER

Published: November 22, 2003

Freddie Mac said yesterday that it had understated its earnings by nearly $5 billion over more than three years, ending an 11-month review of the company's accounting that led to resignations by prominent executives and concerns by regulators and lawmakers.

(old NYT Story)