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President Bush and his HUD appointee Alphonso Jackson
Recently, the right-wing crowd has taken to blaming Democrats for the debacle in the housing market which created the mess that we are seeing on Wall Street (and throughout Main Street) today.
Let’s take a trip in the Way Back Machine, shall we. This is from Business First – from November of 2004.
Fannie Mae and Freddie Mac will be required to increase financing to low- and moderate-income home buyers and to increase their commitment to underserved areas under new rules by the Department of Housing and Urban Development.
HUD is requiring the two government-sponsored enterprises to make 56 percent of their mortgage activities in loans written to low- and moderate-income borrowers by 2008, up from the current goal of 50 percent. They will have to increase mortgage activity in underserved areas from 36 to 39 percent by 2008.
To meet the new goals, Freddie Mac and Fannie Mae would have to purchased 400,000 more qualifying home loans during the four-year period, HUD said in a statement.
The new goals become effective beginning Jan. 1.
And who is HUD? HUD is the U.S. Department of Housing and Urban Development. At that time (2004), the Secretary of HUD was Alphonso Jackson. From HUD’s website:
In nominating Jackson, President George W. Bush chose a leader with a strong background in housing and community development, expertise in finance and management, and a deep commitment to improving the lives of all Americans.
Alphonso Jackson first joined the Bush Administration in June of 2001 as HUD’s Deputy Secretary and Chief Operating Officer. As Deputy Secretary, Jackson managed the day-to-day operations of the $32 billion agency and instilled a new commitment to ethics and accountability within HUD’s programs and among its workforce and grant partners.
Immediately preceding his appointment at HUD, Jackson served as President of American Electric Power-TEXAS, a $13 billion utility company located in Austin, Texas.
If you don’t recall, Jackson resigned amidst multiple ethics violations and spent tens of thousands of dollars on a photo homage to himself (and President Bush) at HUD headquarters.
UPDATED with video below the fold.
For a refresher on Mr. Jackson’s problems, this from Wikipedia:
Selecting contractors based on politics
On April 28, 2006, Jackson spoke at a meeting in Dallas and addressed the subject of government contracting. He recounted that a prospective African-American HUD contractor had made a “heck of a proposal” and was selected upon the basis of that proposal, but upon thanking Secretary Jackson for being selected the bidder, mentioned that he did not like President Bush. As a result, Jackson said, the bidder who had criticized Bush did not receive the contract: “Brother, you have a disconnect — the president is elected, I was selected. You wouldn’t be getting the contract unless I was sitting here. If you have a problem with the president, don’t tell the secretary.” Jackson asked the crowd, “Why should I reward someone who doesn’t like the president, so they can use funds to try to campaign against the president? Logic says they don’t get the contract. That’s the way I believe.”After Jackson’s comment, Sen. Frank Lautenberg (D-NJ) called for Jackson to resign. In response, the Department of Housing and Urban Development stated that Jackson’s statement was not literally true but instead “anecdotal,” and meant only to “explain to this group how politics works in D.C.” An inspector general’s report later claimed that Jackson “personally intervened with contractors whom he did not like…these contractors had Democratic political affiliations,” however no direct proof was found that Jackson’s staff obeyed.
Conflict of interest investigation
The Federal Bureau of Investigation, in conjunction with HUD Inspector General Kenneth Donohue, a federal grand jury, and prosecutors from the Justice Department’s Public Integrity Section are investigating conflict of interest allegations over a $127 million redevelopment project in New Orleans that Jackson had awarded to Columbia Residential, an Atlanta Company. According to the HUD secretary’s public financial disclosure reports, the firm has significant financial ties to Jackson, and owes the secretary between $250,000 and $500,000 “for past services.” The investigation centers around whether Jackson had misled Congress when he testified that he “didn’t touch contracts”.
Separately, federal agents are closely examining whether Jackson arranged lucrative housing work for two of his close friends, one of whom worked at the Housing Authority of New Orleans, and the other had received a contract to manage the Virgin Islands Housing Authority.
Jackson’s former No. 2 aide Scott Keller has emerged as a key figure in the investigation.
Withholding funds for political reasonsIn March 2008 The Washington Post reported on a series of emails in early 2007 between HUD assistant secretaries Kim Kendrick and Orlando J. Cabrera that suggested that HUD leadership sought to punish Carl R. Greene, the director of the Philadelphia Housing Authority (PHA). Greene had refused to turn over property to Universal Community Homes, a development company founded by Kenny Gamble, a friend of Jackson’s; Greene said that Universal had not performed as promised. Gamble complained to Jackson about the situation in 2006. On the same date that the emails were sent, HUD notified PHA that it was in violation of rules regarding accessibility for disabled residents.
Countrywide Financial Loan Scandal
Further information: Countrywide financial political loan scandal
In June 2008 Conde Nast Portfolio reported that Secretary of Housing and Urban Development Alphonso Jackson was one of several politicians that got below rates loans at Countrywide Financial because the corporation considered the officeholders “FOA’s”–”Friends of Angelo” (Countrywide Chief Executive Angelo Mozilo).
And then there is the president’s own words.
Sorry, wingnuts…you own this one.
h/t: danp at Washington Monthly.
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