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.
Published: Jan 28, 2012