WASHINGTON, D.C. – Trump’s son-in-law and policy advisor Jared Kushner, a globalist with leftist learnings, has hired Jamie Gorelick as his attorney in the Democrat’s “Russian collusion” witch hunt.
Remarkably, positioning Gorelick at the heart of the Trump administration counter-attack to the Democratic Party’s no-evidence “Russian Collusion” meme is tantamount to installing a direct line to the Clinton home in Chappaqua, N.Y., making leaking to Bill and Hillary a matter of lawyer-client privilege.
For those who have not followed Gorelick’s career, she is an established Clinton operative whose loyalty to the Clinton-wing of the Democratic Party has decades of history.
For those not familiar with Gorelick, this article will detail her history as a Democratic operative on the 9/11 Commission, as well as one of the Democrats rewarded by being given lucrative appointments at Fannie Mae and Freddie Mac with the opportunity to enrich themselves with the type of fraudulent accounting that would have made the Enron criminals blush.
Jamie “The Wall” Gorelick and the 9/11 Commission
From 1994 to 1997, while serving in the Department of Justice as a deputy attorney general, Gorelick wrote a 1995 memo, creating what in time became known as the “Gorelick Wall.”
Basically, the Gorelick memo set in stone the Clinton-era doctrine that terrorism was to be regarded as a criminal justice problem, such that information developed by intelligence agencies was not to be shared with criminal investigative units, including the Department of Justice, largely because the regulations under which intelligence agencies operate did not necessarily protect the civil rights of criminal suspects under U.S. law.
Gorelick’s role in writing this memo was not generally known until she was appointed by then-Senate Democratic Party minority leader Tom Daschle to serve as a commissioner on the National Commission on Terrorist Attacks Upon the United States, commonly known as the 9/11 Commission.
Her participation as commissioner became controversial when then-Attorney General John Ashcroft, in his testimony to the 9/11 Commission, declassified and brought to light the 1995 Department of Justice memorandum authored by Gorelick.
Appearing before the 9/11 Commission, Ashcroft testified, “Although you understand the debilitating impact of the wall, I cannot imagine that the commission knew about this memorandum, so I have declassified it for you and the public to review. Full disclosure compels me to inform you that its author is a member of this commission.”
Ashcroft contended the document authored by Gorelick helped establish the “single greatest structural cause” for 9/11, which was “the wall that segregated criminal investigators and intelligence agents.”
Since Ashcroft’s disclosure, controversy has swirled over the possibility that had intelligence and law enforcement agencies fully shared information about prospective terrorist attacks, 9/11 might have been prevented.
Specifically, critics have argued that in the days before 9/11, the “Gorelick Wall” prevented FBI officials in Minnesota from getting a search warrant to search the computer of Zacarias Moussaoui, the reputed “20th hijacker,” who was placed in custody on Aug. 16, 2001, by the FBI and INS agents and charged with an immigration violation after suspicions were raised concerning Moussaoui’s intentions in pursuing flight training.
Jamie, the “million dollar exec” at Fannie Mae
In the aftermath of the 2008 U.S. government takeover of Fannie Mae and Freddie Mac in midst of the subprime mortgage crisis, attention focused on three prominent Democrats who served as Fannie Mae executives:
- Franklin D. Raines, former Clinton administration budget director;
- James Johnson, former aide to Democratic vice president Walter Mondale; and
- Jamie Gorelick, former Clinton administration deputy attorney general.
All three earned millions in “compensation” while serving as top Fannie Mae executives.
- Raines earned $90 million in his five years as Fannie Mae CEO, from 1999 to 2004;
- Johnson earned an $21 million in just his last year serving as Fannie Mae CEO from 1991 to 1998; and
- Gorelick earned an estimated $26 million serving as vice chair of Fannie Mae from May 1997 to May 2003, according to a May 2006 Special Examination of Fannie Mae conducted by the Office of Federal Housing Enterprise Oversight
All three subsequently were involved in mortgage-related financial scandals concerning their stewardship at Fannie Mae.
The bankruptcy of sub-prime mortgage “king” Countrywide Financial and the massive defaults and forfeitures experienced in sub-prime mortgages written under the Community Recovery Act passed in 1977 under Jimmy Carter’s administration were the precipitating causes of the 2008 economic collapse and subsequent prolonged economic downturn from which the economy is still recovering.
Despite her role in both the Countrywide Financial and subprime mortgage debacles, Gorelick managed to retain all earnings she garnered working for Fannie Mae.
Nor was her role in the subprime mortgage crisis ever investigated by the Obama administration, despite the need for Treasury to inject some $187 billion in 2008 a preferred stock purchase agreement required to keep Fannie and Freddie afloat though the crisis.
Here are the gory details.
In 1998, then-Fannie Mae vice chairman Gorelick received a bonus of $779,625, despite her alleged involvement in a scandal in which Fannie Mae employees falsified signatures on accounting transactions to manipulate Fannie Mae books to meet 1998 earning targets.
Those manipulations allegedly triggered multi-million dollar bonuses for top executives, including Gorelick.
The 1998 bonus reported for then-Fannie Mae Chairman and CEO James Johnson was $1.932 million and for then-chairman designate Franklin Raines was $1.11 million.
In 2001, Gorelick bragged to Business Wire that Fannie Mae had passed in the second quarter of 2001, a year-and-a-half ahead of schedule, its acquisition target to purchase $10 billion of sub-prime mortgage loans under the terms of the Community Reinvestment Act, passed in 1977 during Jimmy Carter’s administration.
“Our approach to lenders is ‘CRA Your Way,’” Gorelick explained to Business Wire.
“Fannie Mae will buy CRA loans from lenders’ portfolios; we’ll package them into securities; we’ll purchase CRA mortgages at the point of origination; and we’ll create customized CRA-targeted securities,” she continued
Business Wire noted that through its “American Dream Commitment,” Fannie Mae under Gorelick’s management pledged to transact before 2010 more than $20 billion in specially targeted CRA business and to finance over $500 billion in CRA business altogether.
Over the course of the decade 2000-2009, an estimated one-third of loans financed by Fannie Mae were specified to meet Fannie Mae’s CRA business goal.
In remarks to the American Bankers Association’s National Community and Economic Development Conference in Chicago on Oct. 30, 2000, Gorelick said, “We will take CRA loans off your hands – we will buy them from your portfolios, or package them into securities – so you have fresh cash to make more CRA loans.”
The Wall Street Journal reported on Sept. 25, 2008, that Gorelick, while yet an executive at Fannie Mae, received from Countrywide Financial Corp. a favor from Countrywide’s then-CEO Angelo Mozilo, a “friend of Angelo” refinancing.
That was in 2003, and reportedly was favorable interest for a 10-year, 5 percent fixed rate deal on a $960,149 mortgage owned by Gorelick.
In the interview with the Wall Street Journal, Gorelick said she had no knowledge of receiving special treatment.
Still, the Wall Street Journal reported Gorelick’s mortgage was handled through the Countrywide’s VIP lending department in California, and the staff there was aware of her position as a senior Fannie Mae executive, according to statements Robert Feinberg, a former Countrywide employee, made to the newspaper.
Feinberg claimed that the average market rate for mortgage loans of the type obtained by Gorelick at the time were around 6 percent, with the result Gorelick’s preferred terms allowed her to save thousands of dollars over the life of the loan.
At that time, Fannie Mae had in place a company conflict-of-interest policy that required full disclosure of potential conflicts of interests and prohibited the acceptance by Fannie Mae officers of substantial loans with preferential terms from an organization seeking to do business with Fannie Mae, without prior review and approval by Fannie Mae.
In 2003, Countrywide was the nation’s biggest mortgage firm and the largest supplier of mortgage securities to Fannie Mae under an exclusive “strategic agreement” reached by the two firms in July 1999, according to the Wall Street Journal report.
Under the 1999 deal, Countrywide agreed to deliver a large portion of Fannie Mae’s annual loan volume in exchange for special financing terms.