Financial crisis has been good for Senator Feinstein (D-CA)
Promoted from diaries – Moe lane.
The democrat Senator and her real-estate investor husband, Richard Blum, have done very well from the current economic downturn, thanks in no small part to the senator’s timely legislation.
From the Washington Times:
On the day the new Congress convened this year, Sen. Dianne Feinstein introduced legislation to route $25 billion in taxpayer money to a government agency that had just awarded her husband’s real estate firm a lucrative contract to sell foreclosed properties at compensation rates higher than the industry norms.
Mrs. Feinstein’s intervention on behalf of the Federal Deposit Insurance Corp. was unusual: the California Democrat isn’t a member of the Senate Committee on Banking, Housing and Urban Affairs with jurisdiction over FDIC; and the agency is supposed to operate from money it raises from bank-paid insurance payments – not direct federal dollars.
Most real estate firms earn a 6% commission on sales. However, from its FDIC contract, CBRE is receiving 8% as well as monthly maintenance fees for each foreclosed property it handles. This is a “sweetheart” deal by anyone’s standards. Hmmm “sweetheart” deal where have we heard that phrase recently? Oh, I remember it was in regard to senator Chris Dodd’s (D-CT) mortgage dealings with Countrywide.
“From everything I know about it, it is a very sweet deal and went to somebody who is less than qualified in dealing with foreclosed residential properties. Their expertise is in commercial real estate,” said Cynthia Kenner, a Colorado real estate agent who specializes in selling bank-owned residential properties and last year helped sell more than 600 foreclosed properties.
“There are companies that are more experienced in selling such properties than CB Richard Ellis,” she added.
A spokesman for the FDIC said that there is no connection between the legislation pushed by Feinstein and the contract signed with her husband’s firm. In fact, the spokesman goes on to say:
the couple didn’t even know about CBRE’s business with FDIC until after it was awarded.
It is amazing. We are constantly being told how smart liberals are but they never know what’s going on under their own noses.
Feinstein spokesman Gil Duran said:
“She was not aware of the contract before she introduced the legislation,” Mr. Duran said. “There is no evidence of any relationship or conflict between this foreclosure relief bill and the contract. Senator Feinstein complies with the rules and guidelines of the Ethics Committee.”
Sure, and Barney Frank didn’t know he was running a gay prostitution ring out of his own apartment.
Let’s see, George Soros, Franklin Raines, Barney Frank, Chris Dodd, Maxine Waters, Diane Feinstein. The economic turmoil has been good for a lot of liberals.
God help us!