Gravitymaster 0 #1 June 21, 2006 When most people hear the word "Enron," they mentally complete the phrase by adding the word "scandal." QuoteAs reporter Lester Holt of NBC's "Today" put it in a Jan. 1 story, "Enron has been the poster child, if you will, of corporate scandals." It isn't the only one, though. There's $40-billion scandal with most of the same elements -- even connection to prominent politicians. Just don't expect to see much about it on TV. After all, the top people involved here are Democrats. Welcome to Fannie Mae, the government-sponsored mortgage giant. As part of a scandal that's been running nearly two years, Fannie Mae has "misstated earnings" to the tune of $10.8 billion. That's some tune. So far, the Fannie fiasco has cost Chief Executive Officer Franklin Raines and several other top executives their jobs. The stock has dropped from nearly $80 a share to around $50 -- roughly $30 billion in lost value. And the company recently settled with the federal government and agreed to pay $400 million in fines, stemming from allegations the firm fiddled with the books to ensure bigwigs got performance bonuses. To top it off, the Fannie Mae leadership was quite well-connected in D.C., especially to the Democratic Party. The Washington Post on May 23 made this all clear in black and white. The front page of that day's Business section showed how James A. Johnson, a former campaign manager for Walter Mondale's presidential run, had created "a political powerhouse." That story had a photo of Mr. Johnson, who had been chairman and chief executive of Fannie Mae, flanked by two other photos -- both other prominent Democrats. On one side was Mr. Raines, a former head of the Office of Management and Budget under Bill Clinton. On the other was Clinton Deputy Attorney General Jamie Gorelick. While the rest of the graphic listed other prominent Democrats and Republicans, the titanic captains at Fannie Mae were clearly Democrats. Sounds like an amazing political scandal. Certainly, newspapers and business magazines think so. The Wall Street Journal, New York Times and The Washington Post have done hundreds of stories on the Fannie fiasco. An Oct. 4, 2004, Wall Street Journal editorial summed up the crisis: "The company was cooking the books. Big time." Then there's network news. When the Business & Media Institute looked into this last year, we found almost no network coverage of the scandal. Instead, ABC, CBS, NBC and CNN all focused hours and hours on the damage done at Enron. Since last year's study period ended on Feb. 1, 2005, CBS has reported on the Fannie Mae scandal just twice -- both the same day of the $400-million settlement. NBC has mentioned it just once and ABC has been completely out to lunch. CNN has mentioned it just six times -- a decline in its coverage. None of the stories discussed the roughly $30 billion in lost value to stockholders since this scandal has hit the news. None of them mentioned this was a Democratic scandal. When it came to Enron, the media did everything they could to link it to Republicans or President Bush. Back in January, Anne Thompson of NBC's "Today" showed how it was done. "He was Houston's No. 1 corporate citizen who morphed into public enemy number one when Enron disintegrated: Ken Lay, friend of presidents past and present. Kenny Boy, President Bush called him, a powerful, influential man with a photograph album of famous figures." Being connected to President Bush was newsworthy. Being connected to President Clinton apparently was not. In a Dec. 28, 2004, interview on CNN's "Newsnight With Aaron Brown," Newsweek reporter Charles Gasparino, who was covering the scandal, said he thought reporters ignored it because "it's a politically correct company." Much like Fannie Mae, perhaps Mr. Gasparino underreported the real results. It seems there was something else about the organization network media types love -- the big (D) after so many of the prominent names. How else can you explain a scandal that equals the wealth of the second-richest man in the country, Warren Buffett, but gets less network coverage than skateboarding during the same time period? There's still time for the networks to do their job because Congress just heard it could take years to fix the problems at Fannie Mae. According to a June 12 BusinessWeek article, "Fannie didn't admit or deny any wrongdoing" in its $400-million settlement. After $10.8 billion in misstated earnings, nearly $30 billion in lost market value and a $400-million settlement, no admission from the firm is necessary. What we do need is an admission from the networks that they have missed a huge story -- and a good reason why. http://www.washingtontimes.com/commentary/20060620-083856-2422r.htm We need to end this Culture of Corruption. Quote Share this post Link to post Share on other sites
Rookie120 0 #2 June 21, 2006 QuoteWe need to end this Culture of Corruption. I wish I knew how to make it end. I wonder how these SOB's sleep at night.If you find yourself in a fair fight, your tactics suck! Quote Share this post Link to post Share on other sites
Gravitymaster 0 #3 June 21, 2006 QuoteQuoteWe need to end this Culture of Corruption. I wish I knew how to make it end. I wonder how these SOB's sleep at night. This is as much about the the Press as it is about these criminals who rip off the taxpayers and investors. Do a Google search and you will find the stories the article refers to. I'd like to know why this hasn't been given the appropriate attention. Is the Press in this country really this biased? Quote Share this post Link to post Share on other sites
StreetScooby 5 #4 June 21, 2006 Quote We need to end this Culture of Corruption. The Senate is trying to end it. They passed a law called Sarbanes-Oxley a couple of years ago, which is now supposedly fully in effect. Unfortunately, SOX is driving investment banking business outside of the US. The last 24 out of 25 largest IPOs have NOT been done in the US. They've gone elsewhere (e.g., London) because of SOX.We are all engines of karma Quote Share this post Link to post Share on other sites
kallend 2,148 #5 June 21, 2006 Old news, NPR reported on it months ago. But I don't suppose you listen much to NPR.... The only sure way to survive a canopy collision is not to have one. Quote Share this post Link to post Share on other sites
idrankwhat 0 #6 June 22, 2006 QuoteOld news, NPR reported on it months ago. But I don't suppose you listen much to NPR. You beat me to it. Marketplace on NPR talks about it all the time. Damn libs. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #7 June 22, 2006 QuoteOld news, NPR reported on it months ago. But I don't suppose you listen much to NPR. Please let me know how to post audio from NPR here. Unamazing is you have no other comment on this story, but take every opportunity to Bash Republicans. Quote Share this post Link to post Share on other sites
SpeedRacer 1 #8 June 22, 2006 I didn't know (or care) what political party the ENRON officials belonged to. but the author of that article definitely seems to have a chip on his shoulder. Speed Racer -------------------------------------------------- Quote Share this post Link to post Share on other sites
Gravitymaster 0 #9 June 22, 2006 QuoteI didn't know (or care) what political party the ENRON officials belonged to. but the author of that article definitely seems to have a chip on his shoulder. Amazing!! With all the press attempts to try and link Kenneth Lay to GWB, you somehow missed that tie-in? Too much NPR maybe? Quote Share this post Link to post Share on other sites
rushmc 23 #10 June 22, 2006 QuoteOld news, NPR reported on it months ago. But I don't suppose you listen much to NPR. Not his point, but then you don't care.........."America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
GTAVercetti 0 #11 June 22, 2006 QuoteOld news, NPR reported on it months ago. But I don't suppose you listen much to NPR. I actually heard that story. WTOP also did a story on it around that time as well.Why yes, my license number is a palindrome. Thank you for noticing. Quote Share this post Link to post Share on other sites
GTAVercetti 0 #12 June 22, 2006 QuoteQuoteOld news, NPR reported on it months ago. But I don't suppose you listen much to NPR. Not his point, but then you don't care.......... Actually, that WAS his point. That it was not given attention by the media. And here is one way that is wrong.Why yes, my license number is a palindrome. Thank you for noticing. Quote Share this post Link to post Share on other sites
rushmc 23 #13 June 22, 2006 QuoteQuoteQuoteOld news, NPR reported on it months ago. But I don't suppose you listen much to NPR. Not his point, but then you don't care.......... Actually, that WAS his point. That it was not given attention by the media. And here is one way that is wrong. What is up here? You know dam well he was talking about the big 4 networks. The 4 that most US people get their "news" from. And you comment about bashing!!?? sshhheeech What is the matter, didn't you get enough sleep last night??"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
GTAVercetti 0 #14 June 22, 2006 And look, here is a link from your favorite news organization: http://www.cbsnews.com/stories/2006/06/15/ap/business/mainD8I8T0VO1.shtml Google reveals 11 pages of hits for Fannie Mae scandal MSNBC has 5 pages of links.Why yes, my license number is a palindrome. Thank you for noticing. Quote Share this post Link to post Share on other sites
GTAVercetti 0 #15 June 22, 2006 I know damn well nothing. What I know is that John posted a place where it WAS discussed and you wrote it off simply because it did not fit into your preset idea. Please point out where I "bashed" you. Pointing out when something is incorrect is not bashing. And no, I did not sleep well and I seemed to have strained my neck at the gym.Why yes, my license number is a palindrome. Thank you for noticing. Quote Share this post Link to post Share on other sites
rushmc 23 #16 June 22, 2006 QuoteAnd look, here is a link from your favorite news organization: http://www.cbsnews.com/stories/2006/06/15/ap/business/mainD8I8T0VO1.shtml Google reveals 11 pages of hits for Fannie Mae scandal MSNBC has 5 pages of links. Again, he did not say it was not reported. He said it did not get the attention of other scandals that involve the other party. Simple and true despite your spin attempts........."America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
GTAVercetti 0 #17 June 22, 2006 Alright, I am out. Spin? Really? Posting locations where articles have been written about this with no actual opinion on the matter is spin? I think you use that term far to liberally. Why yes, my license number is a palindrome. Thank you for noticing. Quote Share this post Link to post Share on other sites
rushmc 23 #18 June 22, 2006 Please point out where I "bashed" you. Pointing out when something is incorrect is not bashing. Quote "but then I don't care doesn't fit my preset idea ----------------------------------------------------------- And no, I did not sleep well and I seemed to have strained my next at the gym. hope you feel and sleep better tonight"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
rushmc 23 #19 June 22, 2006 QuoteAlright, I am out. Spin? Really? Posting locations where articles have been written about this with no actual opinion on the matter is spin? I think you use that term far to liberally. touche Nice touch!"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
GTAVercetti 0 #20 June 22, 2006 Quote Please point out where I "bashed" you. Pointing out when something is incorrect is not bashing. Quote "but then I don't care doesn't fit my preset idea ----------------------------------------------------------- And no, I did not sleep well and I seemed to have strained my next at the gym. hope you feel and sleep better tonight Dude, you just slapped together two different posts. And yes, I bashed you in the post about bashing, but not the one before. Seems a bit too ironic doesn't it> Almost as if I set it up that way....nahhhh. Why yes, my license number is a palindrome. Thank you for noticing. Quote Share this post Link to post Share on other sites
rushmc 23 #21 June 22, 2006 QuoteQuote Please point out where I "bashed" you. Pointing out when something is incorrect is not bashing. Quote "but then I don't care doesn't fit my preset idea ----------------------------------------------------------- And no, I did not sleep well and I seemed to have strained my next at the gym. hope you feel and sleep better tonight Dude, you just slapped together two different posts. And yes, I bashed you in the post about bashing, but not the one before. Seems a bit too ironic doesn't it> Almost as if I set it up that way....nahhhh. Your on a roll this AM. I think you slept better than you let on"America will never be destroyed from the outside, if we falter and lose our freedoms, it will be because we destroyed ourselves." Abraham Lincoln Quote Share this post Link to post Share on other sites
GTAVercetti 0 #22 June 22, 2006 Quote Your on a roll this AM. I think you slept better than you let on I have not slept well for about 8 years now. But it was worse cause of the neck.Why yes, my license number is a palindrome. Thank you for noticing. Quote Share this post Link to post Share on other sites
