« BACK  |  PRINT

RS

EDITOR OF REDSTATE

Turns Out Grover Norquist Lobbied For Fannie Mae and Freddie Mac

While heading Americans for Tax Reform, Grover Norquist founded the lobbying firm of Janus-Meritt Strategies with David Safavian, the former Chief of Staff of the General Services Administration (GSA) who was convicted of lying to prosecutors during the Abramoff scandal and sentenced to prison. Safavian’s conviction was recently upheld.

One of the more interesting clients for Mr. Norquist was Fannie Mae. In 2000, Janus Merit received $120,000 in lobbying fees from Fannie Mae. Mr. Norquist, along with Safavian, was listed as one of the main lobbyists on the Fannie Mae account.

In disclosure records, Janus-Meritt says its lobbying activities related to a “Home ownership tax.” It appears this lobbying work was designed to protect the homeownership tax credit, which Franklin Raines described as key to “increase homeownership in urban and rural areas.” As many conservatives believe, this credit, which Mr. Norquist and Safavian apparently defended, was a major contributing factor in the housing bubble and mortgage crisis.

After lobbying on behalf of Franklin Raines and Fannie Mae, Mr. Norquist sang a different tune in the wake of the subprime mortgage crisis. On October 21, 2010, Mr. Norquist told CNN’s Eliot Spitzer, “Fannie Mae and Freddie Mac brought us this collapse … This was criminal negligence on the part of Barney Frank and Dodd.”

Mr. Norquist, of course, granted himself immunity from his role in this “criminal negligence.”

COMMENTS

  • http://theminorityreportblog.com Repair_Man_Jack

    Do you mean the same Grover Norquist who was accusing Tom Coburn (R-OK) of being a sell-out for negotiating as part of the Gang of Six? You mean Sammi Al-Arian’s old boyo? That Grover Norquist?

  • sundaycombo

    His firm also lobbied for and made introductions for Abdurahaman
    Alamoudi and the American Muslim Council. In case anyone forgot, this character was later convicted for terrorist financing and a host of other illegal stuff. He got sentenced to 23 years in jail. There is no record if Grover sends him a birthday card every year…

    It’s always been a puzzle to me as to how Norquist never got indicted along with “Casino Jack” Abramoff for his role in the Indian gaming scandal. While Norquist appears to be on the “right side” with his stance on taxes, he and others of his ilk really only care about making money and acquiring influence. Even more so than RINOs, these types must be exorcised from the Party.

  • benjaminz

    …this is extremely disappointing to hear. I agree entirely on the last point.

  • asleep06

    … naming his organization “Americans for Making My Sleazy Lobbying Firm Richer” just didn’t have the same vibe.

  • adair

    aren’t terribly inspiring. But I hafta say, the mortgage tax credit is a beautiful thing, as are all tax credits.

    And isn’t it limited to 2 homes, after having been applied to all mortgaged property for awhile? Credit card interest used to be allowed as a tax credit. That wasn’t such a noble idea.

    Then there was the very brief period in the 70′s I think, when you could deduct 50% of a contribution to a PAC, up to $50 per individual taxpayer. Because the overwhelming $ contributions were to Republicans, that was excised from the tax code in a hurry.

    Now the commie pinkos have limited charitable deductions, since of course they know best where charity contributions should be sent.