Sunday, February 5, 2012

Fannie Execs Buried Lavalle Report

Nye Lavalle blew the whistle on questionable practices at Fannie Mae in 2003.

For two years, he corresponded with Fannie executives and lawyers. Fannie later hired a Washington law firm to investigate his claims. In May 2006, that firm, using some of Mr. Lavalle’s research, issued a confidential, 147-page report corroborating many of his findings. And there, apparently, is where it ended. There is little evidence that Fannie Mae’s management or board ever took serious action. 
Several D.C. household names occupied Fannie Mae leadership roles in 2003, Tom Donilon, Jamie Gorelick, Warren Rudman and Ken Duberstein.  Surely, these folks saw or heard elements of the Lavalle report.

Odd, the PDF document of the Lavalle report is searchable only to page 94.  Pages 95 on have been scanned.  I found this odd after seeing Senator Warren Rudman, a Fannie Mae board member, listed on page 130 .  A document search found only one Rudman reference.  It was on page 16.

Fannie Board member Ken Duberstein also consulted with Fannie on regulatory issues.  He received over $1.8 million from 2002-2006 for consulting services.  What did The Duberstein Group have to say about the Lavalle allegations?
Rest assured, the public won't know, not in this PEU world.