Freedom Line Blog

Because the mortgage giant’s former CEO Franklin Raines was trying to make yet another corrupt buck from his government perch.  After concluding his five year run as chief executive, Raines agreed to pay a nearly $25 million fine for Enron-style accounting gimmicks that netted he and other officers millions more in compensation.

Now, World Net Daily is reporting that Raines and others applied twice for the same residential cap-and-trade patent; the first time on behalf of Fannie Mae, the second time for themselves as private “inventors.”  Since the same people applied both times the second application supersedes the first, meaning any profits from the patent go not to Fannie Mae, but Raines & Co.

These distinctions matter because Raines – acting in his capacity as head of Fannie Mae – initially claimed to apply for the patent in order to give the mortgage backer a strong position in encouraging more “green” housing.  That claim proved phony when his second application guaranteed him a windfall if “comprehensive reform” ever came in the form of cap-and-trade legislation.

Sound familiar?  CFIF readers will recall a recent column discussing the same kind of self-enrichment in Obama’s Energy Department, and another analyzing the government’s inability to run any enterprise – and specifically Fannie Mae – like a business.

Who knew we’d get an example that combined them so soon?