WASHINGTON - (04/19/06) -- The Federal Election Commission saidTuesday it fined Freddie Mac a record $3.8 million for an illegalcampaign financing scheme that helped raise millions of dollars forcongressional allies. The secondary mortgage giant used corporateresources between 2000 and 2003 to sponsor 85 congressionalfundraisers its chief lobbyist described as "political riskmanagement" that raised at least $1.7 million for federalcandidates, the FEC said. The fundraisers were organized byMitchell Delk, Freddie's then-chief lobbyist, and former VicePresident Clark Camper, and were held at Washington's Galileorestaurant. They mostly benefited members of the House FinancialServices Committee, which has key jurisdiction over legislativeissues relating to Freddie Mac, including the ongoing efforts toreform the secondary mortgage market. In addition, Freddie Macexecutives used corporate staff and resources to solicit andforward, or "bundle," contributions from company employees tofederal candidates, in violation of federal law. Freddie alsocontributed $150,000 to the Republican Governor's Association in2002, which the RGA later returned. As a government sponsoredenterprise Freddie Mac is prohibited from making any campaigncontributions, but must do so through a political action committee,and FEC regulations bar a corporation from facilitating or actingas a conduit for campaign contributions. Freddie and its sistersecondary market giant, Fannie Mae, have been engaged in a massivelobbying effort the past five years to defeat or limit anypotential reform to the secondary market proposed byCongress.
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A team of ex-First Republic private bankers hopes to serve entrepreneurs who once worked with Silicon Valley Bank.
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Dime Community Bancshares, which has added dozens of bankers over the past two years, is now ready to consider expanding its geography.
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The conviction of a fraud ring mastermind highlights growing risks in home equity lines of credit as equity-rich borrowers become prime targets.
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The Senate passed President Trump's tax and spending bill Tuesday, but questions around Consumer Financial Protection Bureau funding, 1071 delay and remittance taxes remain as GOP leaders scramble to pass the bill out of the House before Trump's July 4 deadline.
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