Changes

===Cronies take over Freddie Mac===

===Cronies take over Freddie Mac===

President Clinton brought Rahm Emanuel into the White House in 1993 as part of his original staff, first serving as Assistant to the President for Political Affairs, and then Senior Adviser to the President for Policy and Strategy. 1998 Clinton appointed Emanuel to the Board of the [[government sponsored entity]] Freddie Mac.<ref>[http://online.wsj.com/article/SB122610420534009957.html Emanuel Pick Underscores Balancing Act Ahead in Reshaping Financial Industry], [[Wall Street Journal]]</ref><ref>[http://abcnews.go.com/Blotter/story?id=6201900&page=1 Emanuel Was Director Of Freddie Mac During Scandal], [[ABC News]], November 7, 2008.</ref>  While on the board during the Clinton administration, Freddie Mac misreported its net income by 30.5 percent, and again in 2001 by 23.9 percent and in 2002 by 42.9 percent, defrauding investors according to the SEC.  Freddie Mac's failure is regarded as one of the precipitating events of the [[Financial Crisis of 2008#2008 crises|Financial Crisis of 2008]].  

President Clinton brought Rahm Emanuel into the White House in 1993 as part of his original staff, first serving as Assistant to the President for Political Affairs, and then Senior Adviser to the President for Policy and Strategy. 1998 Clinton appointed Emanuel to the Board of the [[government-sponsored enterprise]] Freddie Mac.<ref>[http://online.wsj.com/article/SB122610420534009957.html Emanuel Pick Underscores Balancing Act Ahead in Reshaping Financial Industry], [[Wall Street Journal]]</ref><ref>[http://abcnews.go.com/Blotter/story?id=6201900&page=1 Emanuel Was Director Of Freddie Mac During Scandal], [[ABC News]], November 7, 2008.</ref>  While on the board during the Clinton administration, Freddie Mac misreported its net income by 30.5 percent, and again in 2001 by 23.9 percent and in 2002 by 42.9 percent, defrauding investors according to the SEC.  Freddie Mac's failure is regarded as one of the precipitating events of the [[Financial Crisis of 2008#2008 crises|Financial Crisis of 2008]].  

Emanuel later is reported to have sold up to $250,000 of Freddie Mac stock in an insider trading deal only days before the stock dropped by 10 percent — and weeks before it was publicly revealed that the entity was under criminal investigation for inflating earnings.<ref>[http://www.businessinsider.com/book-rahm-emanuel-dumped-tons-of-freddie-mac-stock-days-before-it-collapsed-2011-11#ixzz2MnesKpxI Book: Rahm Emanuel Dumped Tons Of Freddie Mac Stock Days Before It Collapsed]</ref> In 2009 Emanuel became President Obama's Chief of Staff.

Emanuel later is reported to have sold up to $250,000 of Freddie Mac stock in an insider trading deal only days before the stock dropped by 10 percent — and weeks before it was publicly revealed that the entity was under criminal investigation for inflating earnings.<ref>[http://www.businessinsider.com/book-rahm-emanuel-dumped-tons-of-freddie-mac-stock-days-before-it-collapsed-2011-11#ixzz2MnesKpxI Book: Rahm Emanuel Dumped Tons Of Freddie Mac Stock Days Before It Collapsed]</ref> In 2009 Emanuel became President Obama's Chief of Staff.