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Romney Enriched Himself From Investments Made in Fannie Mae and Freddie Mac

January 23, 2012 at 9:26 p.m. ET

Tonight, “Say Anything” Mitt Romney attacked Newt Gingrich for profiting from Fannie Mae and Freddie Mac.  But Romney didn’t mention just how much he’s enriched himself  from investments in those very same institutions. 

ROMNEY ENRICHED HIMSELF FROM INVESTMENTS MADE IN FANNIE MAE AND FREDDIE MAC, WHILE BLAMING THEM FOR THE HOUSING CRISIS

Romney Profited From Investments Made In Fannie Mae And Freddie Mac While Criticizing The Entities For Inducing The Home-Mortgage Crisis. “Republican presidential candidate Mitt Romney has long been critical of Fannie Mae and Freddie Mac, blaming the government-backed housing lenders for inducing the home-mortgage crisis and saying they have become too unwieldy. ‘I look at Fannie and Freddie and just think that obviously they’ve grown massively beyond the scope that had been envisioned for them originally,’ he said two weeks ago at a forum in South Carolina. ‘The failures of Fannie Mae, Freddie Mac, Barney Frank, Chris Dodd are just so legion that we have to rethink about how we’re going to support a growing housing industry.’ Yet Romney has profited from investments that were made in both government entities, according to his personal finance disclosure forms and documents compiled by American Bridge, one of several Democratic groups in Washington formed to back the election campaigns of Obama and other Democrats.” [Boston Globe, 9/19/11]

ROMNEY OWNED UP TO $500,000 IN A MUTUAL FUND THAT INVESTS IN FANNIE AND FREDDIE

Romney’s Reported Owning Between $250,000 And $500,000 In A Mutual Fund That Invests In Debt Notes Of Fannie Mae And Freddie Mac – Unlike Like Many Of Romney’s Holdings It Was Not Though A Blind Trust. The Boston Globe wrote of Romney’s personal investments: “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.” [Boston Globe, 9/19/11]

  • Romney Invested In The Mutual Fund Called The Government Obligation Fund In Which Nearly Half Of The Portfolio Was In Fannie Mae, Freddie Mac And Federal Home Loan Bank Notes. “Romney made the investment in a mutual fund called the Government Obligation Fund, managed by Federated Investors Inc. The fund invests in a wide variety of sources, including government agencies and US Treasury notes. But out of a $28.5 billion portfolio, nearly half of the fund was in Fannie Mae, Freddie Mac, and Federal Home Loan Bank notes, according to an SEC filing made in April.” [Boston Globe, 9/19/11]

Romney’s Investment In The Government Obligation Fund Were Made In The Latter Half Of 2007 According To A Romney Aide. The Boston Globe wrote of Romney’s personal investments: “The investment was also not on Romney’s 2007 financial disclosure form. A Romney aide said the investments were made in the latter half of 2007, after he had filed the earlier disclosure form. That was around the time that the scale of the housing crisis was coming into focus. The campaign declined to comment on the record. The Romney aide said the investment was made by Romney’s charitable trust. Romney made the investment in a mutual fund called the Government Obligation Fund, managed by Federated Investors Inc. The fund invests in a wide variety of sources, including government agencies and US Treasury notes. But out of a $28.5 billion portfolio, nearly half of the fund was in Fannie Mae, Freddie Mac, and Federal Home Loan Bank notes, according to an SEC filing made in April.” [Boston Globe, 9/19/11]

2011: ROMNEY REPORTED BOND HOLDINGS IN FANNIE AND FREDDIE WORTH UP TO $500,000 IN HIS PERSONAL FINANCIAL DISCLOSURE

Romney Reported Holding A Freddie Mac Security, “FHLMC 4.625% 10/25/12 AO,” Worth Between $100,001 And $250,000, With Interest Income $5,001 And $15,000 Through The W. Mitt Romney IRA. [Romney, Personal Financial Disclosure, Page Number 7, 8/12/11]

Romney Reported Holding A Fannie Mae Security, “FNMA 3.25% 04/09/2013 AO,” Worth Between $100,001 And $250,000, With Interest Income $5,001 And $15,000 Through The W. Mitt Romney IRA. [Romney, Personal Financial Disclosure, Page Number 7, 8/12/11]

ROMNEY ALSO REPORTED UP TO $1 MILLION IN INCOME FROM THE SALE OF FREDDIE MAC STOCK AND UP TO $500,000 IN FREDDIE MAC BOND HOLDINGS IN 2007

  • Romney Reported Receiving Between $100,001 And $1,000,000 In Dividends And Capital Gains Income From The Sale Of Freddie Mac Common Stock Through The W. Mitt Romney Blind Trust. [Romney, Personal Financial Disclosure, Page Number 5, 8/12/07]
  • Romney Reported Holding A Freddie Mac Security, “FHLMC 3.5 09/15/2007 MS,” Worth Between $250,001 And $500,000, With Interest Income $15,001 And $50,000 Through The W. Mitt Romney Blind Trust. [Romney, Personal Financial Disclosure, Page Number 3, 8/12/07]

ROMNEY BLAMED FANNIE AND FREDDIE FOR THE FINANCIAL CRISIS

Romney Blamed The Housing Crisis On Fannie Mae And Freddie Mac. Romney: “And the reason we have the housing crises we have is that the federal government played too heavy a role in our markets. The federal government came in with Fannie Mae and Freddie Mac, and Barney Frank and Chris Dodd told banks they had to give loans to people who couldn't afford to pay them back.” [CNBC Debate, 11/9/11]

Romney: “What Fannie Mae And Freddie Mac Were Doing Was Simply Unsustainable And Dangerous To The Economy.” [Romney Roundtable, Salem NH, 6/27/11 (Video)]

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