Did Kent Conrad’s VIP Loan Violate Senate Ethics Rules?

• June 18, 2008

The Washington Post asks the question:

SEEKING TO refinance his Delaware beach house in 2004, Sen. Kent Conrad (D-N.D.) did what any ordinary property owner in his position would have done. On the advice of his friend James A. Johnson, who also happened to be the former chief executive officer of mortgage giant Fannie Mae, he called Angelo Mozilo, the CEO of Countrywide Financial. Soon Mr. Conrad had a $1.07 million loan — at a discount, personally ordered for him by Mr. Mozilo, of $10,500 in fees. A few weeks later, Mr. Conrad was back in touch with Countrywide, this time to refinance his eight-unit apartment building in Bismarck, N.D. Countrywide normally does not lend on properties with more than four units, but, on Mr. Mozilo’s orders, Mr. Conrad got $96,000. Clearly, it’s good to be a senator, and it’s good to be a “Friend of Angelo” — as favored VIP borrowers were known at Countrywide.
Of course, it’s even better to be a Friend of Angelo if the public doesn’t know about it. Now that Mr. Conrad’s status is known, along with that of other FOAs — including Mr. Johnson, Mr. Conrad’s Senate colleague Christopher J. Dodd (D-Conn.), former Clinton administration Cabinet officials Donna E. Shalala and Richard C. Holbrooke, former Bush housing secretary Alphonso Jackson, and ex-Fannie Mae CEO Franklin D. Raines — it’s worth figuring out exactly what is, and is not, wrong with this kind of help. . . .
The Senate’s ethics rules quite wisely forbid members from soliciting gifts or knowingly accepting gifts worth more than $100 from entities, such as Countrywide, that employ lobbyists. One question is whether the FOA treatment counts as a gift or fits into an exception for loans at terms generally available to the public. In this case, does “the public” mean everyone, all Countrywide customers or just all FOAs (of whom there were apparently hundreds)? And how should the senators’ economic circumstances (credit scores, net worth, etc.) figure in?

It’s pretty clear to me that if you’re a Senator and you call up the CEO of a lending company and ask for a loan and that CEO responds by giving you an extra-special low rate and waiving costly fees that constitutes a gift.
Because the average American doesn’t get to just phone up the CEO and ask for a loan, and CEO’s aren’t inclined to give loans with special considerations to average Americans.
Senators shouldn’t get special treatment.

Tags: North Dakota News, Politics

http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

Conrad Says Talk With Countrywide Chief `Serendipity’

What kind of an idiot uses a word like “Serendipity?”
This story was on the front page of print edition of the Fargo Forum but, again, not on its website.
What’s up with that?
Gaylord was on WDAY radio this morning and said he lives in an apartment building in Bismarck.
He’s one of those congenital liars.

http://tinyurl.com/4r8ka7
pparets

Whistler: Apparently not as ‘petty’ as we thought.

Wonder how many more of our grifting senators will be unveiled as Mozila-gate unfolds?
http://SayAnythingBlog.com The_Whistler_ofnd

Whistler: Apparently not as â€˜petty’ as we thought.

I would consider taking a $10,000 favor is petty when you are in his position petty. After all he is a US Senator and committee chairman that is very much responsible for spending trillions. If you’re going to sell your integrity do it for a worthwhile price.
http://SayAnythingBlog.com The_Whistler_ofnd

Why would you call the CEO unless you were nudge nudge, wink wink, asking for a special favor.

After all with Kent’s “steller” credit record he could have called the local office and gotten his loan.
Bat One

Whistler,

Pity! Tax returns of public officials can be enormously instructive to those who know how to read them. John Kerry’s returns are still a source of amusement.
Bat One

If any congressman takes anything that is more than de minimus, it should be presumed a bribe.

Lestat,

I share your aggravation… especially with the sanctimonious hypocrites who pontificate on how the rest of us should conduct ourselves, and then quietly exempt themselves when they think no one is looking.

But, no… they should be subject to exactly the same lwas, the same regulations, and the same burden of proof as the rest of us. And exactly the same penalties as well. No more… no less.
Bat One

Just out of curiosity… are Conrad’s tax returns made available to the people of North Dakota whose interests he is supposedly representing?
pparets

Them’s fightin’ words, Kenny.
Bat One

Conrad took a bribe. Mozila gave the bribe.

Lestat,

You’re a bit premature there. No illegal quid pro quo has been established yet. And I suspect you will have a very difficult time getting a conviction on outright bribery… even as stupid as Conrad appears to be.
Lestat

I know it’s a dream, but it shouldn’t be. If any congressman takes anything that is more than de minimus, it should be presumed a bribe.
http://ndgoon.blogspot.com/ goon

Heck Senator Dodd’s loan was worth 75,000.00 to him.
That is a lot of money in my opinion.
Lestat

If this is true, they should both go to jail.
pparets

haha! Well said!

But $10,000 here, $10,000 there… and soon we’re talking REAL money!
http://ndgoon.blogspot.com/ goon

Democrats are great when they are spending other people’s money…
stewart orvik

I think those loans were to “disappear” entirely during the ensuing years. We all know $10,000 is not nearly enough to “sponsor” a 300 billion bail-out.
Bat One

Heck Senator Dodd’s loan was worth 75,000.00 to him.
That is a lot of money in my opinion.

And that $75K is his money… unlike the billions in taxpayer funds with which he proposes to bail out his friend and benefactor, Angelo.
pparets

Well, let’s all take a really deep breath and hold it until the Senate ethics committees takes action against the perps.
http://ndgoon.blogspot.com/ goon

I like how this is important everywhere but in ND.
Shameful.
stewart orvik

I think those loans were to “disappear” entirely during the ensuing years. We all know $10,000 is not nearly enough to “sponsor” a 300 billion bail-out.
http://SayAnythingBlog.com The_Whistler_ofnd

Bat, I’ve never seen an hint that he releases his tax returns.
Bat One

Lestat,

Not “both”… all! Moxila, Conrad, Dodd, Johnson, Gorelick, Raines, Holbrooke, Shalala, and Jackson.

If it was Mozila’s private company, and his personal money being loaned, then he is perfectly free to charge whatever the hell he chooses.

But it wasn’t. And these “VIP” loans violate all kinds of federal rules and statutes.
Bat One

Whistler,

Not only is he “such a petty little grifter” but obviously he’s just not very good at it.
http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

Well, let’s all take a really deep breath

You sound like Hillary.
pparets

Ahhhh… good ‘ol Dirksen of Illinois. Now there was a true analyst!

Thanks for reminding me.
http://SayAnythingBlog.com The_Whistler_ofnd

What’s amazing is that he’s such a petty little crook.
Lestat

Conrad took a bribe. Mozila gave the bribe. What laws did the others break?
Bat One

pparets,

Everett Dirksen would be appalled at the “petty” value you’ve placed on his mot.
http://SayAnythingBlog.com The_Whistler_ofnd

You have to wonder. What I’m surprised at with this is that Conrad is such a petty little grifter.

SayAnythingBlog.com

Did Kent Conrad’s VIP Loan Violate Senate Ethics Rules?

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