The subprime scandal that will cost nearly two million Americans their home has finally made its way to Washington. Several House Democrats have been caught partaking in special discounted VIP interest rates that are not available to the average, politically non-influential consumer. Some of the Democrats involved are Sen. Chris Dodd (heads Senate Banking Committee), Jim Johnson (Obama's hand-picked VP vetter), and Sen. Kent Conrad (chairs the Finance Committee and sits on the Budget Committee). As many as ten others have been named at the time of this post.
Senator Dodd is said to have received two mortgages at fixed interest rates of 4.25% and 4.5% with zero closing costs. If you've recently purchased a home or looked into refinancing an existing, you weren't likely offered rates as nearly sweet as those.
Senator Konrad actually picked up the phone and called the CEO of Countrywide Financial to ask for a special deal. He got a one million dollar loan at virtually no interest. Have you ever tried to call the CEO of a Fortune 500 company?
House Republicans have asked for Speaker Pelosi to launch an investigation into possible corruption. To this point, Madam Speaker has been silent on the issue.
By the time any possible investigation concludes, we fully expect many more Democrats and Republicans to be caught up in the scandal. The simple fact is the lending industry has for a long time provided preferential VIP treatment to government officials.
For instance, credit card companies maintain a constantly updated VIP database of members of congress that they use to offer unheard of low rates or no rate cards. The list is also used to safe guard against sending out deceptive new card offers to those the credit card companies believe might be encouraged to regulate the industry. The lists are even used to keep these "VIP" customers from getting hit with the same fees the average customer often sees on their bill, like late payments, credit card protection, etc.
Whether it's Democrats or Republicans in charge, our representatives continue to prove time and again that the U.S. government is the best government money can buy!