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Miami Herald: Freddie Mac Attack Boomerangs On Connie Mack

On January 27, 2012, the Miami Herald reported:

Rep. Connie Mack hit the campaign trail this week to bash Gingrich for saying little about his profitable ties to mortgage giant Freddie Mac – a potent issue in foreclosure-racked Florida.

But when it comes to Mack’s profits from Freddie Mac’s cousin agency, Fannie Mae, the congressman was mum.

[…]

And, it turns out, Mack and his wife, California Rep. Mary Bono Mack, have turned a profit as well off Fannie Mae, a government-sponsored enterprise that, along with Freddie Mac, is blamed for stoking the mortgage crisis.

[…]

According to Mack’s 2008 financial disclosure form filed with Congress, he and his wife held Fannie Mae bonds worth between $15,000 and $50,000 by the end of 2008.

The report also shows that the Macks sold more than $15,000 in Fannie Mae bonds on Sept. 30, 2008. The sale came just three weeks after the Bush administration took over Fannie Mae and a related mortgage industry titan, Freddie Mac, in an effort to prevent a potential financial meltdown. The government’s move pummeled Fannie Mae stockholders, who lost their investments — but it benefited bondholders like the Macks, providing government backing to Fannie Mae’s debts.

The Macks sold more of their Fannie Mae bonds in 2009, earning capital gains between $200 and $1,000, records show.

Read the whole article here.