Clinton Official Involved in Controversies Stemming From 9/11 and Subprime Loan Crisis Reportedly Shortlisted to Run FBI
The Obama administration reportedly is considering former Clinton administration official Jamie Gorelick, among others, to become the next director of the Federal Bureau of Investigation (FBI).
The Wall Street Journal’s Evan Perez first reported the news last week, citing “U.S. officials” familiar with the situation.
Gorelick served as vice chairman of the Federal National Mortgage Association (Fannie Mae) when the government-sponsored enterprise began bundling subprime loans into securitized financial instruments. Prior to that, she served as deputy attorney general in the Clinton Justice Department under then-Attorney General Janet Reno from 1994 to 1997.
In 1997 President Bill Clinton appointed Gorelick to Fannie Mae, where former Clinton budget director Franklin D. Raines was also serving as chairman.
In 2001, Gorelick announced that Fannie was buying subprime loans encouraged by the Community Reinvestment Act (CRA) and bundling them as securitized financial instrument–the same securities that ultimately plagued the balance sheets of financial institutions such as Bear Stearns and Lehman Brothers once the housing market suffered a downward correction in 2008.