Ignore The Guy Who Lit The Match

� Freddie, Fannie and the Third Rail of Housing Policy - Big Government: "Countrywide was the biggest supplier of loans to Fannie during the mania; in 2004, it sold 26 percent of the loans Fannie bought. Three years later, it was selling 28 percent. What Countrywide got out of the relationship was clear — a buyer for its dubious loans. Now the taxpayer is on the hook for those losses.
But what was in it for Fannie?
An internal Fannie document from 2004 obtained by The New York Times sheds light on this question. A “Customer Engagement Plan” for Countrywide, it shows how assiduously Fannie pursued Mr. Mozilo and 14 of his lieutenants to make sure the company continued to shovel loans its way.
Read the whole thing here. It is a good article. Of course, it would have been very helpful if this had come out, you know, while Congress was considering its bill to remake the financial services industry. Of course, the 2,000 page bill did nothing to address Fannie and Freddie. Because, you know, when our house burns down we should all just ignore the guy who lit the match."

Remember the banker with green eye shades who would never give anyone a loan? If only we could have him back...