Newt Gingrich earned $1.6m+ from Freddie Mac

Originally posted at AMERICAblog Elections: The Right’s Field

Rut-roh. Bloomberg is reporting that Newt Gingrich “made between $1.6 million and $1.8 million in consulting fees from two contracts with mortgage company Freddie Mac.” Gingrich worked with Freddie Mac from 1999 to 2002, as the housing bubble was beginning to rapidly expand.

What’s remarkable about this is that Gingrich viewed Freddie Mac as a vehicle for the Republican Party to gain support from the Hispanic community.

“I spent about three hours with him talking about the substance of the issues and the politics of the issues, and he really got it,” said Delk, adding that the two discussed “what the benefits are to communities, what the benefits could be for Republicans and particularly their relationship with Hispanics.”

This pretty strongly undercuts some of the political arguments waged by pro-bank Republicans who seek to blame the GSEs for inflating the housing bubble. Gingrich was pushing them to do it to help Republicans! It makes Gingrich’s call for Barney Frank to be jailed – instead of banksters – for the financial collapse even more insane.

And while Gingrich has claimed that he advised Freddie Mac that they were creating a housing bubble, Bloomberg reports, “None of the former Freddie Mac officials who spoke on condition of anonymity said Gingrich raised the issue of the housing bubble or was critical of Freddie Mac’s business model.”

Oh Newt, I have a feeling that it’s going to be fun having you near the top of the polls.

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