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.
-
The former head of the Consumer Financial Protection Bureau resigned Friday after the troubled rollout of the Free Application for Federal Student Aid led some House Republicans to call for his resignation.
19m ago -
The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
1h ago -
Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
1h ago -
The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
3h ago -
In the inaugural iteration of American Banker's news quiz, test your knowledge on top articles covering the legal battles of the Consumer Financial Protection Bureau, new technology testing at JPMorgan Chase, earnings season and more.
3h ago -
To build their executive presence in meetings and on video calls, junior employees should embrace flexible schedules — and possibly media training, Michelle Young of Worldpay and Anna Greenwald of MoneyGram International said at American Banker's Payments Forum.
5h ago