Crime, Inc is a story Glenn's been telling you about involving a group of government insiders who stand to make money off cap and trade legislation if it passes. Once of the hose players is Franklin Raines, the former CEO of Fannie Mae. He left the company in 2004 after he inflated earnings by about 9-billion dollars. While Raines was CEO, he and a couple of other Fannie executives applied for patents on a "residential emissions trading program." So why would Fannie Mae and Franklin Raines care about cap and trade? Glenn's not the only one who wants to know... Two members of congress are also seeking information Fannie's interests.
On Thursday, May 13, 2010, Representative Jason Chaffetz (R-UT) along with Representative Darrell Issa (R-CA) sent a letter to David Kappos, the Director of the U.S. Patent and Trademark Office, as well as Michael Williams, President and CEO of Fannie Mae, seeking information concerning a patent issued to Fannie Mae regarding a residential Cap and Trade system.
On June 7, 2005, the U.S. Patent and Trademark Office (USPTO) issued a patent for a “System and Method for Residential Emissions Trading.” The patent was assigned to Fannie Mae and CO2e.com, LLC of New York. Listed as the inventors on the patent were former Fannie Mae Chairman and CEO Franklin Raines, as well as former Fannie Mae Executives Scott Lesmes and Robert Sahadi.
This patent was issued during a crucial time in the country’s housing market. The House Oversight and Government Reform Committee issued a report last year saying Fannie Mae and brother agency Freddie Mac contributed to the housing bubble bursting. “According to an analysis presented to the Committee, between 2002 and 2007, Fannie and Freddie purchased $1.9 trillion of mortgages made to borrowers with credit scores below 660, one of the definitions of “subprime” used by federal banking regulators. This represents over 54% of all such mortgages purchased during those years.”
Currently, taxpayers will be expected to backstop at least $145 billion of Fannie's and Freddie’s losses, and just last week Fannie Mae said it needs another $8.4 billion by June 30. Rep. Chaffetz told Glenn on Fox News that because the government is the majority owner of Fannie, it should have to open up its books.
Copy of the Chaffetz/Issa letter can be found here.
Copy of the patent can be found here.
Other Fannie Mae patents can be found here.