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What Can Orange do For You?

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June 07, 2008 – Comments (0) | RELATED TICKERS: CFC , BAC , FNMA

According to the WSJ, if you're a friend of Angelo, you can get a cut rate on your Countrywide loan. That appears to apply even if you've got potential political or other conflicts of interest.

These borrowers, known internally as "friends of Angelo" or FoA, include two former CEOs of Fannie Mae, the biggest buyer of Countrywide's mortgages, say people familiar with the matter.

One was James Johnson, a longtime Democratic Party power and an adviser to Sen. Barack Obama's campaign, who this past week was named to a panel that is vetting running-mate possibilities for the presumed nominee. Another was Franklin Raines, a onetime Clinton administration budget director, who left Fannie Mae amid an accounting scandal in 2004.

Is there a there here? I'm not sure. But I am sure this won't look good for His Orangeness, nor that failure of an executive, Mr. Frankie Raines. Will it bounce back onto Obama to have one of his advisors getting preferential treatment from the same sleazy-looking subprime lender that talked so many poor people into so many lousy loans?

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