Political Ruminations

Romney Profits From Fannie & Freddie Even as He Sticks it to Gingrich for the Same Thing

Even as Romney goes after Newt Gingrich for profiting from mortgage giants, Fannie Mae and Freddie Mac, it turns out that Gingrich isn’t the only one profiting from the two lenders:

On his financial disclosure statement filed last month, Romney reported owning between $250,001 and $500,000 in a mutual fund that invests in debt notes of Fannie Mae, Freddie Mac, among other government entities. Over the previous year, he had reported earning between $15,001 and $50,000 in interest from those investments.

And unlike most of Romney’s financial holdings, which are held in a blind trust that is overseen by a trustee and not known to Romney, this particular investment was among those that would have been known to Romney.

Think Progress on Romney’s new ad targeting Gingrich over the Fannie-Freddie connection:

Over the weekend, Romney intends to start airing an ad that will say, “While Florida families lost everything in the housing crisis, Newt Gingrich cashed in. Gingrich was paid over $1.6 million by the scandal-ridden agency that helped create the crisis.” Shockingly enough, the ad fails to mention Romney’s own investments in the government backed mortgage giants, which have netted him tens of thousands of dollars.

Will update with the ad as soon as it’s released.

Romney Strikes Back at Gingrich After South Carolina Defeat

Romney went after Newt Gingrich with a vengeance in Ormond Beach, Florida, yesterday. He attacked both Gingrich’s career as the speaker of the House in the 1990’s, and his career as a lobbyist for mortgage giants, Fannie Mae and Freddie Mac. From Romney’s remarks:

“Speaker Gingrich has also been a leader. He was a leader for four years as speaker of the House. And at the end of four years, it was proven that he was a failed leader and he had to resign in disgrace. I don’t know whether you knew that, he actually resigned after four years, in disgrace.

He was investigated over an ethics panel and had to make a payment associated with that and then his fellow Republicans, 88 percent of his Republicans voted to reprimand Gingrich. He has not had a record of successful leadership.”

Over the last 15 years since he left the House, he talks about great bold movements and ideas........ell, what’s he been doing for 15 years? He’s been working as a lobbyist, yeah, he’s been working as a lobbyist and selling influence around Washington.”

Gingrich’s various careers, along with his personal foibles, are easy pickings for rivals. The question is, can they make it stick? I would have thought so, but then I would not have thought that evangelicals in South Carolina would go for Gingrich with his three marriages, and penchant for conducting illicit affairs on the side.

Adding........great tweet on this from David Frum:

Look on the bright side: no more family values talk from South Carolina Republicans.

Morning Quote: Newt Gingrich

David Gregory talks to Newt Gingrich on ‘Meet the Press” yesterday about Gingrich’s lobbying activities for mortgage giants, Fannie and Freddie:

“You are running against the establishment, you're trying to run as an outsider. You talk about housing in Florida. You were a consultant, or, depending on your point of view, a lobbyist for one of the mortgage giants. I'm wondering how you think you win that inside-outside game, given your history.”

A Gingrich now on the offensive, responds to Gregory, denying any lobbying activity ever. So there.

“David, wait a second, David. David, you know better than that. I was not a lobbyist, I was never a lobbyist, I never did any lobbying. Don't try to mix these things up. The fact is I was an adviser strategically and if you look at the only thing ever published by Freddie Mac, I said you need more regulations. If you look at the only article ever written about my talking to the Congress, it was in the New York Times in July of 2008, and I said do not give them any money.

Now I opposed giving money to Fannie Mae and Freddie Mac. I think they should both be broken up into four or five much smaller companies and I've long felt that. And so I think that to jump from one to the other is simply wrong. In Florida, my case is going to be very simple. You have a clear establishment candidate in Mitt Romney. Look where his money comes from, look at his background, look what he did in Massachusetts. And you have somebody whose entire career has been a Reagan populist conservative going all the way back to the 1970s.

I think that's a pretty clear contrast, and I think Floridians would like somebody who speaks for them to Washington, not somebody who speaks to the establishment to them.”

Watch the video of Gingrich denying the lobbyist claim:

Media Matters weighs in on Gingrich’s "I was not a lobbyist" claim:

The holes in Gingrich's "I was not a lobbyist" argument have been demonstrated several times over. Politifact gave the claim a "Half-True" rating, noting that it's depressingly easy and common for "consultants" who provide "strategic advice" (which is how Gingrich's campaign explained his relationship with Freddie Mac) to essentially function as lobbyists without having to register as such. The Washington Post called Gingrich's denials of being a lobbyist "clearly misleading," laying out all the known details of Gingrich's dealings with the mortgage giant.