Senator Charles Schumer has a lot of nerve. He also has a strong belief that the US public is naive and gullible. At best, it’s comical that Senator Schumer is demanding action on the sub prime crisis from the accounting firms. After all, they pay him to protect their interests, not the other way around. Where did he get the idea that they’re part of the solution? I wouldn’t be surprised to find out that Deborah Harrington wrote the press release.
Sen. Schumer urges Big 4 on mortgage accounting
“U.S. Senator Charles Schumer has asked the big accounting firms what steps they are taking to inform investors holding securitized mortgage assets that they can modify home loans and refinance them, according to a letter obtained by Reuters on Friday.
“One of the most promising solutions to the anticipated foreclosure crisis is the voluntary modification by lenders of existing unsustainable subprime loans,” the New York Democrat said in a letter to the heads of Deloitte and Touche USA, KPMG, Ernst & Young and PricewaterhouseCoopers.
In July Securities and Exchange Commission Chairman Christopher Cox said mortgage servicers may modify individual mortgage loans when a default is reasonably foreseeable without breaking accounting rules.
…”To that end, I would like to know what steps you are taking to ensure that your clients are aware of this guidance,” wrote Schumer, who said he hoped that the accounting firms were encouraging their clients to modify subprime loans at risk of default.”
US Senator Charles Schumer is number 3 on Ernst & Young’s list of top campaign contribution recipients for the years 2001-2006.
He’s also number 3 on Deloitte’s all time 1999-2006 list of campaign contribution recipients.
As a matter of fact, E&Y and Deloitte are in his top 20 all time greatest contributors!
PricewaterhouseCoopers has him a little farther down on their list but still in the top ten. He’s number 9 on their list of top federal candidates receiving their contributions between 1990-2006.
From 1999-2004, KPMG was Mr. Schumer’s 14th largest contributor overall.
When Arthur Andersen was still around, they gave big money, also. He’s high on their list, too.
Senator Schumer has also received money from the American Institute of Certified Public Accountants, the industry trade association, over the last several years.
In general, Senator Schumer was the number 2 US Senate recipient of contributions from the accounting industry in the 2003-2004 election cycle. Only Christopher Dodd and George W. Bush got more money.