Monday, September 15, 2008

Jamie Gorelick, Mistress of Disaster

It's not often that one person plays key roles in two -- count 'em, two -- trillion-dollar disasters. Welcome, my friends, to the world of well-connected Democrat Jamie Gorelick.

In 2004, observers were "astonished" to discover that a key member of the 9/11 Commission had a fatal conflict-of-interest. Jamie Gorelick had served as a Deputy Attorney General under Bill Clinton from 1994 to 1997.

It was later revealed that Gorelick had established a pre-Patriot Act "wall" that prevented the foreign intelligence and criminal investigative communities from collaborating.

Her 1995 memo, entitled "Instructions on Separation of Certain Foreign Counterintelligence and Criminal Investigations", stated explicitly that they would "go beyond what is legally required, [to] prevent any risk of creating an unwarranted appearance that FISA is being used to avoid procedural safeguards which would apply in a criminal investigation."

The result: shortly before 9/11, Gorelick's wall "specifically impeded the investigation into Zacarias Moussaoui", the so-called "20th hijacker."

At the time, an enraged FBI investigator wrote a memo to headquarters which included the sentence, 'Whatever has happened to this -- someday someone will die -- and wall or not -- the public will not understand why we were not more effective..."

The 2004 disclosure that Gorelick's service as a 9/11 Commissioner was the archetypical conflict-of-interest should have triggered a cacophony of complaints and demands for a new investigation. Instead, the mainstream media turned deaf and dumb and the controversy faded into the background.

Gorelick's "wall" wrapped a blindfold around America just when it needed its vision to stop the attacks that killed thousands and which sucked a half a trillion dollars out of the economy.

Where did Gorelick turn up next?

Though she had no training or experience in finance, Gorelick was appointed the Vice Chairman of Fannie Mae and served in the role from 1997 to 2003. During that six-year period, she earned over $26 million.

During Gorelick's tenure, FNMA suffered a $10 billion accounting scandal, an ominous harbinger of the firm's looming troubles. One of the falsified transactions helped FNMA hit earnings targets for 1998, which triggered bonuses for top executives including nearly $800,000 to Gorelick.

Put simply "Jamie Gorelick was one of the Fannie executives who benefited from inflated bonuses based on Enron-style accounting."

In 2002 Business Week interviewed Gorelick concerning the health of FNMA. She responded, "We believe we are managed safely. We are very pleased that Moody's gave us an A-minus in the area of bank financial strength -- without a reference to the government in any way. Fannie Mae is among the handful of top-quality institutions."

Less than a year later regulators "accused Fannie Mae of improper accounting to the tune of $9 billion in unrecorded losses."

Today, of course, FNMA is on taxpayer-funded life support, currently trading at 61 cents a share. And because it was thought to have been "managed safely" (Gorelick's words), many top-flight financial services companies held its stock.

Last week it was revealed that top insurer AIG was teetering on the precipice of disaster because, in part, it held $600 million in Fannie and Freddie. Roughly $4 billion in those stocks are held by insurers, according to rating agency A.M. Best.

Put simply, FNMA's collapse helped touch off the current swath of instability in the financial system.

It's not often that one person plays such a key role in two unmitigated disasters.

Democrat Jamie Gorelick is just such a person; that is why she has earned her nom de guerre "The Mistress of Disaster".

What do you call someone with a Midas Touch, only instead of gold everything they touch turns to s***? That's what Gorelick's got.

If I was one of her associates at the law firm of WilmerHale, I'd keep my head on a frickin' swivel.

Update: Just Barking Mad adds even more foaming-at-the-mouth-level anger to the story:

In 1999 Fannie Mae announced that it would purchase $10B in CRA loans. In 2001 they reached that target as Ms. Gorelick announced that they would roll these into special security issues...

Yep, you guessed it. Gorelick also had a direct hand in the mortgage securitization debacle. I'm guessing we could link her to a few other catastrophes if we did the legwork. Where was she when the Hindenberg below up, for instance?

Linked by: Instapundit, American Thinker, Memeorandum, RawStory, RS McCain, Clayton Cramer, EconoPundit, Jammie Wearing Fool and PrairiePundit. Thanks!


the Mover said...

I just read your article and I'm surprised that there are no comments, agreeing or flaming. It came up nearly first in a Google search.

I am in complete agreement with your evaluation of her record. The fact that she is not in jail is probably attributable to the legacy media, who are 100% in the tank for Obama and the Democrats.

Thank you for putting it together.

Anonymous said...

Thanks for this post. Now more than ever it shows how the democrats in charge have no clue about security for this nation. I used to be a democrat.

Quran said...

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Randy Mott said...

Republicans seemed to be in shock in 2008 and refused to generally campaign aggressively on how the CRA/Fannie Mae one-two punch set up the (duh) subprime mortgage crisis, which triggered the recession.

I hope that 2010-2012 finds the party on the attack on this. The Financial Reform bill is an excellent vehicle. Amendments to abolish CRA? An outside audit of Fannie Mae?

Pick up the fight and take it to the other side

FeminizedWesternMale said...

After Fannie Mae, she went on to navigate the Duke University debacle, representing Duke and their laughable position. Now, she is taking up the reins at BP.

She's like the central character in the Stones "Sympathy For The Devil."

Honestly, someone should be able to make a lot of money, betting on her destroying whatever she touches.

Anonymous said...

Prior to her distruction in the early 2000's she made a name for herself as the Deputy Attorney General under Janet Reno. She was in charge of the OK Federal building bombing investigation. The 1st 24 hours had reports of a middle eastern looking "John Doe 2". That report and all film from various points around the Murray building has fallen into a rabbit hole the day she was put in charge. See Jayna Davis' "The 3rd Terrorist" for the story. Next time in charge of investigation was for the TWA 93(?) explosion out of New Jersey in the late 90's. Although more than 3000 people reported seeing a missle or plume, many of them ex or current military, ex or current police, and ex or current fire dept, none were called to testify. To this day, the official report of cause is undeterminded.


Anonymous said...

Whoever becomes President next November, I'm hoping that their first executive order is that any Federal office building that lets Gorelick past the lobby will be razed and all employees in it fired.

Anonymous said...



Anonymous said...

According to Wikipedia... Jamie S. Gorelick (play /ɡəˈrɛlɪk/; born May 6, 1950) is an American attorney, presently representing BP.[1]

Representing BP???? Now doesn't that smell like smoking tires?

hubert rainfield said...

Thank you for this post. Jamie is well known for her bonafides _ That's why she is so well placed. It's a miracle we survive _Under/ the control and contempt of these evil doers. My lot is a simple one, but you have done yeoman's work here.... so many people are discovering the lies that have covered us up. We are beginning to understand and we are learning there is the real_ The Truth

Anonymous said...

Update:Feb. 10, 2012 Jamie Gorelick
now a director at Amazon!

SoFlaMan62 said...

I personally hold Jamie Gorelick responsible for turning Bin Laden's plan into a reality. Gorelick is part and parcel, one of those in the Clinton administration who had such little regard for the people in the FBI and the CIA that she came up with this utterly insane edict. And where was Clinton to stop this insanity? He was lying under oath as his depositions.... In my eyes, Jamie Gorelick is a walking, living, breathing disaster ready to happen. Of course it makes sense she had a hand into Fanny Mae and FReddie Mac, it makes sense!

Anonymous said...

obummah, has for many years, what i call, the Fecal Touch

perhap he is king fe/uc-all

Anonymous said...

Now that the bar has been lowered as far as it can go, Jamie Gorelick looks like presidential material.

She could run with that other chronic screw-up, Hillary Clinton.

Gorelick/Clinton in 2016

Don't scoff. It could happen, and you know it, and they could get elected, too.

Anonymous said...

Truly frightening,Why has this woman remained in positions of power,I don't get it....There is no statue of limitations on murder.The 3000 people who died on 9/11 need to be layed in this woman's lap,Period!

Anonymous said...

Do not forget that Ms. Jamie Gorelick was also the CONTROL POINT for the TWA 800 disaster blackout.
- she controlled the information that the FBI produced keeping important info from the public.
She was the one who buried some 200+ witness reports of a rocket hitting the plane. Further she made witnesses 'hostile' and made some
She was the one.

read more

DaveS said...

Finally, I am not alone in wondering where Gorelick came from. Lok a little further back and you can find her fingerprints on the Waco inferno that in turn led to McVeigh and the bombing in Oklahoma City.

There is hardly a national disaster in this country in the past twenty years in which Gorelick had no part.

DaveS said...

At last, I am not alone! Dig back a little further and you will find Gorelick's fingerprints on the Waco inferno which led McVeigh to blow up the federal building in Oklahoma City.

There is hardly a national disaster in the past twenty years in which this trainwreck had no part.

Unknown said...

When the Clinton Administration gave sharks teeth to the Community Reinvestment act, banks were unwilling to participate in the loose loan regulations. As Janet Reno's #1, Jamie Gorelick issued the edict that any banker unwilling to lend money to unqualified home buyers and follow the new racial quotas would be indicted CRIMINALLY by the Clinton Justice Department. THAT is why all these banks participated in the "Liar loans."

Pete said...

Jamie Gorelick is also attorney to Ivanka Trump and her husband Jared Kushner. I heard this from journalist Lee Stranahan in this video: (jump to 18 minute mark)

Anonymous said...

the link says Video Unavailable. :/