Company name | Federal Home Loan Mortgage Corporation (Freddie Mac) |
---|---|
Company logo | |
Company type | Government-sponsored enterprise & Public company () |
Company slogan | We Make Home Possible |
Foundation | 1970 |
Location | Tysons Corner, Virginia, U.S. |
Key people | Charles E. Haldeman, CEO |
Num employees | 5,300 (''2010'') |
Products | Financial services |
Homepage | FreddieMac.com |
Industry | Credit services |
Market cap | US$ 270 million (''2008'') |
Revenue | US$14.3 Billion (''FY 2009'') |
Operating income | US$-22.4 Billion (''FY 2009'') |
Net income | US$-21.5 Billion (''FY 2009'') |
Assets | US$-841.8 Billion (''FY 2009'') |
Equity | US$4.4 Billion (''FY 2009'') }} |
The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac (), is a public government sponsored enterprise (GSE), headquartered in the Tyson's Corner CDP in unincorporated Fairfax County, Virginia.
The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases. The name, "Freddie Mac", is an acronym of the company's full name that had been adopted officially for ease of identification (see "GSEs" below for other examples).
On September 7, 2008, Federal Housing Finance Agency (FHFA) director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA (see Federal takeover of Fannie Mae and Freddie Mac). The action has been described as "one of the most sweeping government interventions in private financial markets in decades".
Moody's gave Freddie Mac's preferred stock an investment grade rating of A1 until August 22, 2008, when Warren Buffett said publicly that both Freddie Mac and Fannie Mae had tried to attract him and others. Moody's changed the credit rating on that day to Baa3, the lowest investment grade credit rating. Freddie's senior debt credit rating remains Aaa/AAA from each of the major ratings agencies Moody's, S&P;, and Fitch.
As of the start of the conservatorship, the United States Department of the Treasury had contracted to acquire US$1 billion in Freddie Mac senior preferred stock, paying at a rate of 10% per year, and the total investment may subsequently rise to as much as US$100 billion.Home loan interest rates may go down as a result and owners of Freddie Mac debt and the Asian central banks who had increased their holdings in these bonds may be protected. Shares of Freddie Mac stock, however, plummeted to about one U.S. dollar on September 8, 2008, and dropped a further 50% on June 16, 2010, when the Federal Housing Finance Agency ordered the stocks delisted. In 2008, the yield on U.S Treasury securities rose in anticipation of increased U.S. federal debt.
The Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA") revised and standardized the regulation of both Fannie Mae and Freddie Mac. Prior to this act, Freddie Mac was owned by the Federal Home Loan Bank System and governed by the Federal Home Loan Bank Board, which was reorganized into the Office of Thrift Supervision by the Act. The Act severed Freddie Mac's ties to the Federal Home Loan Bank System, created an 18-member board of directors, and subjected it to oversight by the U.S. Department of Housing and Urban Development (HUD).
In 1995, Freddie Mac began receiving affordable housing credit for buying subprime securities, and by 2004, HUD suggested the company was lagging behind and should "do more."
Freddie Mac was put under a conservatorship of the U.S. Federal government on Sunday, September 7, 2008.
Both Alan Greenspan and Ben Bernanke have spoken publicly in favor of greater regulation of the GSEs, because of the size of their holdings and the widespread perception that they are government backed. Freddie Mac is currently regulated by the HUD and its Office of Federal Housing Enterprise Oversight (OFHEO). The United States House of Representatives passed HR 1427 (''Federal Housing Finance Reform Act of 2007'') to consolidate oversight for Freddie, Fannie, and the Federal Home Loan Banks into a single regulator.
The then-director of the Congressional Budget Office, Dan L. Crippen, testified before Congress in 2001, that the "debt and mortgage-backed securities of GSEs are more valuable to investors than similar private securities because of the perception of a government guarantee."
On April 18, 2006, Freddie Mac was fined $3.8 million, by far the largest amount ever assessed by the Federal Election Commission, as a result of illegal campaign contributions. Freddie Mac was accused of illegally using corporate resources between 2000 and 2003 for 85 fundraisers that collected about $1.7 million for federal candidates. Much of the illegal fund raising benefited members of the House Financial Services Committee, a panel whose decisions can affect Freddie Mac. Notably, Freddie Mac held more than 40 fundraisers for House Financial Services Chairman Michael Oxley, R-Ohio.
As of 2008, Fannie Mae and Freddie Mac owned or guaranteed about half of the U.S.'s $12 trillion mortgage market. This made both corporations highly susceptible to the subprime mortgage crisis of that year. Ultimately, in July 2008, the speculation was made reality, when the US government took action to prevent the collapse of both corporations. The US Treasury Department and the Federal Reserve took several steps to bolster confidence in the corporations, including extending credit limits, granting both corporations access to Federal Reserve low-interest loans (at similar rates as commercial banks), and potentially allowing the Treasury Department to own stock. This event also renewed calls for stronger regulation of GSEs by the government.
President Bush recommended a significant regulatory overhaul of the housing finance industry in 2003, but many Democrats opposed his plan, fearing that tighter regulation could greatly reduce financing for low-income housing, both low- and high-risk. Bush opposed two other acts of legislation: Senate Bill S. 190, the Federal Housing Enterprise Regulatory Reform Act of 2005, which was introduced in the Senate on January 26, 2005, sponsored by Senator Chuck Hagel and co-sponsored by Senators Elizabeth Dole and John Sununu. S. 190 was reported out of the Senate Banking Committee on July 28, 2005, but never voted on by the full Senate.
On May 23, 2006, the Fannie Mae and Freddie Mac regulator, the Office of Federal Housing Enterprise Oversight, issued the results of a 27 month long investigation.
On May 25, 2006, Senator McCain joined as a co-sponsor to the Federal Housing Enterprise Regulatory Reform Act of 2005 (first put forward by Sen. Charles Hagel [R-NE]) where he pointed out that Fannie Mae and Freddie Mac's regulator reported that profits were "illusions deliberately and systematically created by the company's senior management". However, this regulation too met with opposition from both Democrats and Republicans.
Several executives of Fannie Mae or Freddie Mac include Kenneth Duberstein, former Chief of Staff to President Reagan, advisor to John McCain's Presidential Campaign in 2000, and President George W. Bush's transition team leader (Fannie Mae board member 1998-2007); Franklin Raines, former Budget Director for President Clinton, CEO from 1999 to 2004—statements about his role as an advisor to the Obama presidential campaign have been determined to be false; James Johnson, former aide to Democratic Vice-President Walter Mondale and ex-head of Obama's Vice-Presidential Selection Committee, CEO from 1991 to 1998; and Jamie Gorelick, former Deputy Attorney General to President Clinton, and Vice-Chairman from 1998 to 2003. In his position, Johnson earned an estimated $21 million; Raines earned an estimated $90 million; and Gorelick earned an estimated $26 million. Three of these four top executives were also involved in mortgage-related financial scandals.
The top 10 recipients of campaign contributions from Freddie Mac and Fannie Mae during the 1989 to 2008 time period include 5 Republicans and 5 Democrats. Top recipients of PAC money from these organizations include Roy Blunt (R-MO) $78,500 (total including individuals' contributions $96,950), Robert Bennett (R-UT) $71,499 (total $107,999), Spencer Bachus (R-AL) $70,500 (total $103,300), and Kit Bond (R-MO) $95,400 (total $64,000). The following Democrats received mostly individual contributions from employees, rather than PAC money: Christopher Dodd, (D-CT) $116,900 (but also $48,000 from the PACs), John Kerry, (D-MA) $109,000 ($2,000 from PACs), Barack Obama, (D-IL) $120,349 (only $6,000 from the PACs), Hillary Clinton, (D-NY) $68,050 (only $8,000 from PACs). John McCain received $21,550 from these GSEs during this time, mostly individual money. Freddie Mac also contributed $250,000 to the 2008 Republican National Convention in St. Paul, Minnesota according to FEC filings. The organizers of the Democratic National Convention have not yet submitted their filings on how much they received from Freddie Mac and Fannie Mae.
On Oct 21, 2010 government estimates revealed that the bailout of Fredie Mac and Fannie Mae will likely cost taxpayers $154 billion.
On September 7, 2008, Federal Housing Finance Agency (FHFA) Director James B. Lockhart III announced pursuant to the financial analysis, assessments and statutory authority of the FHFA, he had placed Fannie Mae and Freddie Mac under the conservatorship of the FHFA. FHFA has stated that there are no plans to liquidate the company.
Under the reported plan, the federal government, via the FHFA, would place the two firms into conservatorship and for each entity, dismiss the chief executive officer, the present board of directors, elect a new board of directors, and cause to be issued new common stock to the federal government. The value of the common stock to pre-conservatorship holders would be greatly diminished, in the effort to maintain the value of company debt and of mortgage-backed securities.
On September 7, 2008, the U.S. Government took control of both Fannie Mae and Freddie Mac. Daniel Mudd, CEO of Fannie Mae and Richard Syron, CEO of Freddie Mac have been replaced. Herbert M. Allison former vice chairman of Merrill Lynch will take over Fannie Mae, and David M Moffett, former vice chairman of US Bancorp, will take over Freddie Mac. It is estimated that the liabilities of both companies could cost U.S. taxpayers tens of billions of dollars.
Category:Affordable housing Category:Mortgage industry of the United States Category:Organizations established in 1970 Category:Companies delisted from the New York Stock Exchange Category:United States government sponsored enterprise
ar:فريدي ماك de:Freddie Mac es:Freddie Mac eo:Freddie Mac fr:Federal Home Loan Mortgage Corporation it:Freddie Mac he:פרדי מאק lt:Freddie Mac nl:Freddie Mac ja:連邦住宅金融抵当公庫 no:Freddie Mac pt:Freddie Mac ru:Freddie Mac fi:Freddie Mac sv:Freddie Mac vi:Freddie Mac zh-yue:房貸美 zh:房地美This text is licensed under the Creative Commons CC-BY-SA License. This text was originally published on Wikipedia and was developed by the Wikipedia community.
Before joining the ''LA Times'' staff in 2007, Lazarus worked as a columnist for the San Francisco Chronicle and a nightly talk radio host for San Francisco's KGO Radio. He graduated from the University of California, Berkeley.
He won first place in the 2005 National Headliner Awards contest for business reporting. And the Society of Professional Journalists in Northern California named him "Journalist of the Year" in 2001. A media watchdog site, Grade the News, described him this way: "Since coming to the ''Chronicle'' from ''Wired News'' in 1999, David Lazarus has been one of the most prolific, and influential, writers at the paper."
Lazarus is the author of two books on Japan, where he lived for several years, and has had articles published in many magazines. He had a small part in the 1976 film ''The Bad News Bears''.
David lives in Southern California with his wife and son.
Category:American columnists Category:American journalists Category:American talk radio hosts Category:Consumer rights activists Category:People from San Francisco, California Category:Radio personalities from San Francisco, California Category:University of California, Berkeley alumni Category:Writers from California Category:Year of birth missing (living people) Category:Living people Category:Place of birth missing (living people) Category:American skeptics
This text is licensed under the Creative Commons CC-BY-SA License. This text was originally published on Wikipedia and was developed by the Wikipedia community.
birthname | Richard John Santorum |
---|---|
jr/sr | United States Senator |
state | Pennsylvania |
party | Republican |
term | January 3, 1995 – January 3, 2007 |
preceded | Harris Wofford |
succeeded | Bob Casey, Jr. |
state2 | Pennsylvania |
district2 | 18th |
term2 | January 3, 1991 – January 3, 1995 |
preceded2 | Doug Walgren |
succeeded2 | Mike Doyle |
birth date | May 10, 1958 |
birth place | Winchester, Virginia |
dead | alive |
occupation | Attorney, politician |
residence | Penn Hills, Pennsylvania |
law school | Dickinson School of Law, 1986 |
spouse | Karen Garver Santorum |
alma mater | Pennsylvania State University University of Pittsburgh Dickinson School of Law |
religion | Christian (Roman Catholic) |
footnotes | }} |
Richard John "Rick" Santorum (born May 10, 1958) is a lawyer and a former United States Senator from the commonwealth of Pennsylvania. Santorum is a member of the Republican Party and was the chairman of the Senate Republican Conference.
Santorum is considered both a social and fiscal conservative. He is known for his stances on the U.S. invasion of Iraq, Social Security, intelligent design, homosexuality, and the Terri Schiavo case.
In March 2007, Santorum joined the law firm Eckert Seamans Cherin & Mellott, LLC. He was to primarily practice law in the firm’s Pittsburgh and Washington, D.C., offices, where he was to provide business and strategic counseling services to the firm's clients. In addition to his work with the firm, Santorum also serves as a Senior Fellow with the Ethics and Public Policy Center in Washington, D.C., and was a contributor to Fox News Channel.
Santorum is a candidate for president of the United States in the 2012 election. He formed a presidential exploratory committee on April 13, 2011, and formally announced his candidacy on June 6.
Both of Santorum's parents worked at the Veterans’ Administration (VA) Hospital in Butler, and the family lived on the VA hospital post. His father became licensed as a psychologist in August 1974. He attended schools in the Butler Area School District, where he gained the nickname “Rooster”, allegedly because he "always had a few errant hairs on the back of his head that refused to stay down", and he was "noisy, showy, dogged and determined like a rooster and never backed down".
Santorum graduated from Carmel High School in Mundelein, Illinois, in 1976, where his father transferred within the VA hospital system. He lists his residency as Penn Hills, Pennsylvania, and maintains a home in Leesburg, Virginia, for his work in Washington, D.C.
Santorum earned a Bachelor of Arts degree, having majored in Political Science, from The Pennsylvania State University in 1980, and a Master of Business Administration degree from the University of Pittsburgh in 1981. He is a member of Tau Epsilon Phi fraternity.
In 1986, Santorum earned a Juris Doctor (J.D.) from the Dickinson School of Law, was admitted to the Pennsylvania bar, and began practicing law in Pittsburgh. While working at the law firm of Kirkpatrick & Lockhart, he represented the World Wrestling Federation, arguing that professional wrestling should be exempt from federal anabolic steroid regulations because it was not a sport. Santorum left private practice after first being elected to the House in November 1990.
Karen Santorum wrote a book about the experience: ''Letters to Gabriel: The True Story of Gabriel Michael Santorum''. In it, she writes that the couple brought the deceased infant home from the hospital and introduced the dead child to their living children as "your brother Gabriel" and slept with the body overnight before returning it to the hospital. The anecdote was also written about by Michael Sokolove in a 2005 ''New York Times Magazine'' story on Santorum. Karen is also the author of a book on etiquette for children.
Santorum and his family usually attend Latin Mass at Saint Catherine of Siena Church, near Washington, D.C. On November 12, 2004, Santorum and his wife were invested as Knight and Dame of Magistral Grace of the Knights of Malta in a ceremony at St. Patrick's Cathedral, New York.
After earning his Juris Doctor, Santorum became an administrative assistant to Republican State Senator Doyle Corman (until 1986). He was director of the Pennsylvanian Senate's local government committee from 1981 to 1984, then director of the Pennsylvanian Senate's Transportation Committee until 1986.
In 1990, at age 32, Santorum was elected to the U.S. House of Representatives from Pennsylvania's 18th District, located in the eastern suburbs of Pittsburgh. He scored a significant upset, defeating a seven-term Democratic incumbent, Doug Walgren. Although the 18th was heavily Democratic, Santorum attacked Walgren for living outside the district for most of the year. He was re-elected in 1992, in part because the district lost its share of Pittsburgh as a result of redistricting. In Congress, as a member of the Gang of Seven, Santorum worked to expose congressional corruption by naming the guilty parties in the House banking scandal.
In 1994, at the age of 36, Santorum was elected to the U.S. Senate, defeating the incumbent Democrat, Harris Wofford, who was 32 years older. The theme of Santorum's 1994 campaign signs was "Join the Fight!" Santorum was re-elected in 2000 defeating Congressman Ron Klink by a 52.4% to 45.5% margin.
In 1996 he endorsed Arlen Specter for president.
In a 2002 PoliticsPA feature story designating politicians with yearbook superlatives, he was named the "Most Ambitious".
As chairman of the Senate Republican Conference, Santorum directed the communications operations of Senate Republicans and was a frequent party spokesperson. He was the youngest member of the Senate leadership and the first Pennsylvanian to hold such a prominent position since Senator Hugh Scott was Republican leader in the 1970s. In addition, Santorum served on the Senate Agriculture Committee; the Senate Committee on Banking, Housing and Urban Affairs; the Senate Special Committee on Aging; and the Senate Finance Committee, of which he was the chairman of the Subcommittee on Social Security and Family Policy.
In January 2005, Santorum announced his intention to run for United States Senate Republican Whip, the second-highest post in the Republican caucus after the 2006 election. The move came because it was presumed the incumbent whip, Mitch McConnell of Kentucky, was viewed as having the inside track to succeeding Bill Frist of Tennessee as Senate Republican leader.
During the lame-duck session of the 109th Congress, Santorum was one of only two senators who voted against Robert Gates to become Secretary of Defense. He opposed Gates' advocacy of engaging Iran and Syria to solve the problem, saying that talking to "radical Islam" would be an error.
During his third term re-election campaign for his Senate seat against Bob Casey, Jr., Santorum introduced the term "Islamic fascism", while questioning "his opponent's ability to make the right decisions on national security at a time when 'our enemies are fully committed to our destruction.'"
Santorum sat at the Senate's candy desk for ten years and kept it stocked with Hershey’s chocolates, Peanut Chews and Hot Tamales.
Santorum was defeated 59% to 41% in the 2006 U.S. Senate election by Democratic candidate Bob Casey, Jr. This was the largest margin of defeat for an incumbent Senator since 1980.
In September 2005, Santorum gave a speech that outlined the successes and failures—but more centrally the future—of conservatism, at the Heritage Foundation's First International Conservative Conference on Social Justice. In November 2005, he adapted his speech into an op-ed piece for the political website Townhall.com outlining his vision for "Compassionate Conservatism".
The Associated Press reported that on July 20, 2006, Santorum stated that "Islamic fascism rooted in Iran is behind much of the world's conflict, but he is opposed to military action against the country", in a speech where he "also defended the treatment of prisoners in Guantanamo Bay." The senator indicated that "effective action against Iran" would require America's fighting "for a strong Lebanon, a strong Israel, and a strong Iraq."
On September 7, 2006, Santorum outlined his views on foreign policy in an op-ed piece for the ''Pittsburgh Post-Gazette'' and discussed Islamic fascism, closing with a rally cry:
Santorum has referred to his grandfather's historical encounter with Italian fascism as an inspiration for his 2012 presidential campaign.
Santorum has been active in addressing the issues of welfare reform and government accountability. He is a self-described conservative who favors restricting or prohibiting abortion. Santorum has said he is personally against abortion and has expressed disapproval of homosexuality, issues that he believes should be decided by elected officials rather than the Supreme Court: “what I’d like to do is have these kinds of incredibly important moral issues be decided by the American public, not by nine unelected, unaccountable judges.”
Though not included in the final version of the Act made law, the language from the amendment was included in a report attached to the Act known as the Conference Report. The Discovery Institute and many intelligent design proponents, including two Ohio Congressmen, have repeatedly invoked this to suggest that intelligent design should be included in public school science standards as an alternative to evolution.
In a 2002 ''Washington Times'' op-ed article Santorum wrote that intelligent design "is a legitimate scientific theory that should be taught in science classes." By 2005 Santorum had adopted the Discovery Institute's Teach the Controversy approach, stating in an interview with National Public Radio "I'm not comfortable with intelligent design being taught in the science classroom. What we should be teaching are the problems and holes, and I think there are legitimate problems and holes in the theory of evolution", a statement which mirrors the Teach the Controversy strategy, the most recent iteration of the intelligent design movement. The day after the ''Kitzmiller v. Dover Area School District'' decision that intelligent design is not science and is essentially religious in nature came down, Santorum announced that he was resigning from the advisory board of the Thomas More Law Center which had defended the Dover school board. Most recently Santorum wrote the foreword for the March 2006 book, ''Darwin's Nemesis: Phillip Johnson And the Intelligent Design Movement'' a collection of essays largely by Discovery Institute fellows honoring the "father" of the intelligent design movement, Phillip E. Johnson.
On April 14, 2005, Santorum introduced the National Weather Service Duties Act of 2005 to "clarify the duties and responsibilities of the National Oceanic and Atmospheric Administration and the National Weather Service (NWS), and for other purposes". This legislation, if enacted, would prohibit the NWS from publishing weather data to the public when private-sector entities, such as AccuWeather, a company based in Santorum's home state, perform the same function commercially. Accuweather employees have contributed at least $5500 to Santorum since 1999, according to the Federal Election Commission.
Opponents of this bill contend that weather data is collected at taxpayer expense, and therefore it should be made freely available to the public, and not provided solely to private corporations that will charge fees for access. They also claim that the vague language in the bill is an attempt to prevent the NWS from issuing free forecasts because such functions are currently provided by the private sector and would be considered competition.
The bill was never enacted or voted upon, dying in committee.
When questioned for his remarks, Santorum stated that they were intended not to equate homosexuality with incest and pedophilia, but rather as a critique of the specific legal position that the right to privacy prevents the government from regulating consensual acts among adults (such as bigamy, incest, etc.).
In protest of the remarks, syndicated columnist Dan Savage launched a contest among his readers in May 2003 to coin a new word "santorum" with an unflattering sexual definition, and followed this with a Google bombing campaign to spread the new term. Since 2004, Savage's Google bomb has regularly been the top search result for Santorum's surname, leading to what commentators have dubbed "Santorum's Google problem". Santorum has characterized the campaign as a "type of vulgarity" common on the Internet.
During the presidential debate held August 11, 2011, in Ames, Iowa, Santorum stated that the Iranian regime "tramples the rights of gays", suggesting that he opposes bias against gays as part of his general support for past U.S.-backed intervention in domestic Iranian politics.
These comments came to wider attention through an opinion column in the ''Philadelphia Daily News'' on June 24, 2005. Columnist John Baer cited Santorum's article, stating, "I'd remind you this is the same Senate leader who recently likened Democrats fighting to save the filibuster to Nazis."
Santorum's remarks were criticized, especially in Massachusetts. On July 12, 2005, ''Boston Globe'' columnist Brian McGrory called on Santorum to explain his statement, and reported that Robert Traynham, Santorum's Director of Communications, told him "It's an open secret that you have Harvard University and MIT that tend to tilt to the left in terms of academic biases. I think that's what the senator was speaking to." Julie Teer, a spokeswoman for Governor of Massachusetts, Republican Mitt Romney, said "What happened with the church sex abuse scandal was a tragedy, but it had nothing to do with geography or the culture of Boston."
Later that day, Senator Ted Kennedy (D-Massachusetts) delivered a personal rebuke to Santorum on the Senate floor, saying "The people of Boston are to blame for the clergy sexual abuse? That is an irresponsible, insensitive and inexcusable thing to say." Santorum has stood by his 2002 article and has not apologized.
On July 21, 2005, Rush Limbaugh interviewed Santorum about Kennedy's speech. Santorum said that he was being targeted by the Democratic Senatorial Campaign Committee, which, he said, coordinated with the media to publicize Kennedy's speech. He argued that his statement about Boston was taken out of context from an article he had written three years earlier. Santorum agreed with Limbaugh's summary that it was "no surprise that the center of the Catholic Church abuse took place in very liberal, or perhaps the nation's most liberal area, Boston." Santorum reiterated his broader theme of a cultural connection, saying that it is "no surprise that the culture affects people's behavior. [...] the liberal culture—the idea that [...] sexual inhibitions should be put aside and people should be able to do whatever they want to do, has an impact on people and how they behave." When asked why Boston specifically was mentioned, Santorum pointed out that, in July 2002, the outrage of American Catholics, as well as his own, was focused on the Archdiocese of Boston.
The campaign of Bob Casey, Jr., his Democratic opponent for the Senate, criticized Santorum's remarks.
On September 6, in a follow-up interview with WTAE, Santorum said,
On September 8, during an interview with public-radio station WITF-FM, in Harrisburg, Pennsylvania, Santorum said
Santorum was the sponsor of legislation proposed to ''prevent'' the National Weather Service from issuing those warnings, thus competing with private-sector weather services, as discussed above.
Santorum added a synthetic-fuel tax-credit amendment to a larger bill introduced in the Senate by Charles Grassley, the Iowa Republican who headed the Senate Finance Committee. ''Time Magazine'' called this tax-credit scheme "a multibillion-dollar scam." The amendment was inserted in the Tax Relief Act of 2006, which provides aid for Hurricane Katrina victims and sets new policies for tax-exempt groups.
At the time the issue arose, Santorum's five older children attended the Western Pennsylvania Cyber Charter School, with 80 percent of tuition costs paid by the Penn Hills School District. At a meeting in November 2004, the Penn Hills School District announced that it did not believe Santorum met the qualifications for residency status, because he and his family spent most of the year in Virginia. They demanded repayment of tuition costs totaling $67,000.
When news reports showed Sen. Santorum was renting his Penn Hills home, Santorum withdrew his five children from the cyber education program that Penn Hills School District paid for. That saved Penn Hills taxpayers about $38,000 a year. Although Santorum said he would make other arrangements for his children's education, he insisted that he did not owe the school board any back tuition. Once the controversy surfaced, the children were withdrawn from the cyber school and were then home schooled.
On July 8, 2005, a Pennsylvania state hearing officer had ruled that the Penn Hills School District had not filed objections to Santorum's residency in a timely manner and dismissed the complaint. Santorum hailed the ruling as a victory against what he termed "baseless and politically motivated charges". Santorum told reporters that "[n]o one's children—and especially not small, school-age children—should be used as pawns in the 'politics of personal destruction.'" In the 2006 senate campaign, Santorum ran television commercials with Santorum's son saying "My dad's opponents have criticized him for moving us to Washington so we could be with him more."
In September 2006, the Pennsylvania Department of Education agreed to pay the district $55,000 to settle the dispute over money withheld from the district to pay for the children of U.S. Senator Rick Santorum to attend a cyber charter school.
The matter rose again in May 2006. Santorum has said that his family stays during holidays and at times on weekends at the Penn Hills house. But the ''Progress'' reported in May that the house appeared unoccupied, and Casey's campaign noted that in a press release. Santorum then accused Casey's campaign of supporting trespassing on his property, saying of Casey "Now that he is a nominee, it is time for him to start acting like a candidate instead of a thug." Casey, in a statement, called the charges "false and malicious." His campaign, in a news release, described Santorum's actions as "weirdness".
In September 2006, Santorum formally asked that the county remove the homestead tax exemption from his Penn Hills residence. He said that he had made similar requests to county officials in conversations in 2005 and earlier in 2006, but to no avail. In his letter, Santorum insisted that he was entitled to the exemption, which is worth about $70 annually, but chose not to take advantage of it because of the political dispute. While homeowners in the county are eligible for a tax savings averaging $70 a year on their primary residences, the county council president noted that Santorum had "said during a televised debate that he spends about 30 days in his Penn Hills house each year.".
Allegheny County Election Office records indicate that, while a registered voter in the county, Santorum had since 1995 voted absentee.
The only way for Santorum to not pay for his children's private education was to enroll them in the Penn Hills School District. Virginia state law only requires local school districts to pay for private school tuition fee when a student has disabilities and enrolls in a school that can satisfy his or her needs, according to Charles Pyle, Virginia Department of Education spokesman. Otherwise, children in Virginia must attend their local public schools.
Santorum's supporters have said that the controversy is politically motivated because the school board is controlled by Democrats (Erin Vecchio, the school board member who first publicly raised the issue, is the chair of the local Democratic Party). They also have said that since Santorum votes in Penn Hills and pays property and school taxes there, he is entitled to the same privileges as any other Penn Hills resident and should not be deprived of these privileges as a result of his service in the U.S. Senate. Non-residency issues have raised questions of hypocrisy, in that Santorum had previously castigated Representative Doug Walgren for moving away from his district.
Santorum's declaration was based, in part, on declassified portions of a classified report from the National Ground Intelligence Center of the U.S. Army Intelligence and Security Command. Portions were declassified in a summary that made six key points:
In 1996, as a U.S. senator, Santorum served as Chairman of the Republican Party Task Force on Welfare Reform.. The legislation that became the Welfare Reform Act of 1996 written by Florida congressman E. Clay Shaw, Jr., passed with overwhelming bipartisan support and was signed into law by President Bill Clinton.
Though not a named author of the special Schiavo legislation, Santorum played a key role in shepherding the bill through the Senate to a vote on March 20, 2005. Santorum has frequently stated that he does not believe a "right to privacy" exists under the Constitution, even within marriage; he has been especially critical of the Supreme Court decision in ''Griswold v. Connecticut'' (1965), which held that the Constitution guaranteed the aforementioned right, and on that basis, overturned a law prohibiting the sale and use of contraceptives.
Santorum is also a supporter of partial privatization of Social Security. Since the 2004 presidential election, Santorum has held forums across Pennsylvania on the topic.
In 2005, Santorum sponsored the Iran Freedom and Support Act, which appropriated $10 million aimed at regime change in Iran. The Act passed with overwhelming support. However, Santorum nevertheless voted against the Lautenberg amendment which would have closed the loophole which allows companies like Halliburton to do business with Iran through their foreign affiliates.
In reference to the Iraq war in 2006, Santorum drew an analogy with ''The Lord of the Rings'' in one of his addresses:
Santorum informed senator John Ensign that Ensign's affair with a staff member was about to become publicly known.
Republican strategists took as a bad omen Santorum's primary result in 2006, in which he ran unopposed for the Republican nomination. Republican gubernatorial nominee Lynn Swann, also unopposed, garnered 22,000 more votes statewide than Santorum in the primary, meaning thousands of Republican voters abstained from endorsing Santorum for another Senate term. This may have been partly due to Santorum's support for Arlen Specter, over Congressman Pat Toomey in the 2004 Republican primary for the U.S. Senate. Even though Santorum is only slightly less conservative than Toomey, he joined virtually all of the state and national Republican establishment in supporting the moderate Specter. This led many socially and fiscally conservative Republicans to consider Santorum's support of Specter to be a betrayal of their cause.
On May 22, 2006, the polling firm Rasmussen Reports declared that Santorum was the "most vulnerable incumbent" among the Senators running for re-election. However, in August 2006, polling showed Santorum with his highest approval rating in months, 48 percent, a twelve-point jump between July and August. Nearly as many Pennsylvanians, 45 percent, said they had an unfavorable view of the Senator.
For most of the campaign, Santorum was behind by 15 points or more. Most polls during the summer of 2006 showed the race between Casey and Santorum becoming increasingly competitive, but a poll released by Quinnipiac University on September 26 showed Casey's margin ballooning back to a double-digit lead.
One day before the Quinnipiac poll was released, a Pennsylvania state judge ruled against a potential third-party candidate, Carl Romanelli of the Green Party. Romanelli fell about 8,900 petition signatures shy of the threshold needed to be placed on the statewide ballot in November. On October 4, 2006, the Pennsylvania State Supreme Court also rejected Romanelli's legal challenge. This was a potential blow to the Santorum campaign, as Romanelli was expected to siphon off some Casey voters.
There is also some question as to whether Romanelli and Pennsylvania's Green Party violated federal election laws when they accepted tens of thousands of dollars in donations from people also backing Santorum's campaign.
Santorum found himself mired in controversy over his residency. For many years, he has maintained a modest home in Penn Hills, a suburb of Pittsburgh, which he claims as his official residence. However, his family lived in the Virginia suburbs of Washington when the Senate was in session. Since this meant Santorum spent most of the year away from Pennsylvania, critics argued it was not unlike the living arrangements he denounced in his 1990 House race against Walgren. Santorum accused Walgren of being out of touch with his Pittsburgh-area district, symbolized by his home in the Virginia suburbs. On NBC's Meet the Press on September 3, 2006, Santorum admitted that he only spends "maybe a month a year, something like that" at his Pennsylvania residence.
Santorum also drew criticism for enrolling five of his six children in an online "cyber school" in Pennsylvania's Allegheny County (home to Pittsburgh and most of its suburbs), despite the fact the children lived in Virginia. The Penn Hills School District was billed $73,000 in tuition for the cyber classes.
At least one of Santorum's television ads called into question his campaign's use of the facts regarding Casey and persons who have donated money to the Casey campaign. According to the ad, some of the persons who have given Casey money are or have been under investigation for various crimes. An editorial in Casey's hometown newspaper, ''The Scranton Times-Tribune'', points out that all but one of the contributions "[was] made to Casey campaigns when he was running for other offices, at which time none of the contributors were known to be under investigation for anything." In fact, two of the persons cited in the Santorum campaign ad had actually given contributions to Mr. Santorum's 2006 Senate campaign. Another died in 2004. However, the Santorum campaign pointed out that the money the Santorum campaign received from those donors was not kept by the campaign, but rather donated to educational institutions.
A heated debate between the candidates occurred on October 11, 2006. There, according to coverage by ''Pittsburgh Post-Gazette'', the candidates appeared "less statesmanlike than either Gov. Ed Rendell or challenger Lynn Swann, who had debated each other in Pittsburgh the [previous] week".
In late October, during the Lebanon County Republican Committee’s annual dinner at the Lantern Lodge, Santorum said "If we are not successful here and things don’t go right in the election, there’s a good chance that the course of our country could change." "We are in the equivalent of the late 1930s, and this election will decide whether we are going to continue to appease or whether we will stand and fight while we have a chance to win without devastating consequences."
Santorum on August 28 gave a speech to Pennsylvania media at the Pennsylvania Press Club luncheon in Harrisburg (which he earlier gave to the National Club) claiming that terrorist attacks on America by "radical Islamists" were part of a more than three-century-old plot to restore Shia clerics to power and bring "the 12th Imam" out of hiding. He said, according to the online news service, Capitolwire: “They believe, as all Shias do, in the Hidden Imam, the 12th Imam," the 12th descendant in a straight line from Mohammed the Prophet, who disappeared in 874, at the age of 5. “The Shia believe that he is the Messiah and he is in hiding and that he will return. … They believe … he will return with radical Islam, when Shia dominates the world. Well, for over 1,000 years, ... the East and West fought, up until 1683 ... In 1683, not that long ago, the Islamists had surrounded the gates of Vienna and were on the verge of toppling it after a siege; ... but the West united, and led by the Poles, [King] John Sobieski and the Polish Hussars defeated [the Arab forces] in a one-day battle on the plains outside Vienna. “What was the high-water mark of this 1,000-year war? It was the day before. What was the date the day before? Sept. 11, 1683.”
This speech eventually led to Santorum launching a tour called "The Gathering Storm," comparing himself to the British Prime Minister Winston Churchill, who alerted his nation and the world to the Nazi menace in the 1930s, and then fought with America, Russia and others to defeat the Germans, Italians and Japan in World War II in the 1940s. The Associated Press' Jennifer Yates wrote on Oct. 27 that Santorum said: "This is a moment, a critical crossroads in American history," as she noted that "Santorum, who invoked Winston Churchill's memoir – "The Gathering Storm" – about the causes of World War II" then told her and audiences: "The parallel is so profound."
Days before, Yates reported, Santorum said: Casey's election and that of other Democrats trying to take over the U.S. House and Senate would be "a disaster for the future of the world."
On the Sunday before the election, Casey responded to the comment, telling Capitolwire: "Who runs a campaign like that? No one believes terrorists are going to be more likely to attack us, because I defeat Rick Santorum. Does even he believe that?"
Santorum wrote that many women have disclosed to him that it is more "socially affirming to work outside the home than to give up their careers to take care of their children.... What happened in America so that mothers and fathers who leave their children in the care of someone else – or worse yet, home alone after school between three and six in the afternoon – find themselves more affirmed by society? Here, we can thank the influence of radical feminism." Polls showed many female voters resented this description of why they worked, especially Republican and independent women whose abandonment of Santorum doomed his campaign, reported the online news service Capitolwire, based in Harrisburg. In a question-and-answer session on Aug. 28 at the Pennsylvania speech, Santorum tried again to address the issue and said his problem was that federal taxes now consumed 27 percent of family wages, and the second wage earner in most families made only 25 percent of the first's wages.
“First, I would say, read the book and I think if you read the book, you can answer the question yourself. Because anyone who has read the book instead of the comments pulled out by the Democratic National Committee about the book, which was four sentences, by the way, in a 430-page book, … would tell you I am supportive of families in a variety of different ways. ... What does the average second-earner in the family make? Twenty five percent of the first earner. ... Because of our tax code, we make it virtually impossible to maintain a standard of living and at the same time, be home with your children. ... Number two, look, I believe that women should have choices when it comes to the workforce. And they should be real choices. "And look, I came from a family where my mother worked, all her life, made more money than my dad (N.B.: his mother and father were a registered nurse and psychiatrist, respectively). I have more people working in my office who are women, in senior policy positions, than men. So I don’t have a hang-up with women working. I do have a hang-up with the government and others in society not nurturing, supporting and encouraging parents to be home with their kids when they need to be home. And I think we need to do more as a society to help them.”
In the November election, Santorum lost, with 41% of the vote to Casey's 59%, the largest margin of defeat ever for an incumbent Republican Senator in Pennsylvania.
In March 2007 Santorum joined Eckert Seamans Cherin & Mellott, LLC, where he primarily practiced law in the firm's Pittsburgh and Washington, D.C. offices providing business and strategic counseling services to the firm's clients. He also joined the Ethics and Public Policy Center, a D.C.-based conservative think tank. Santorum was also a contributor on the Fox News Channel. Santorum also writes an Op/Ed piece titled "The Elephant in the Room" for the Commentary Page of the Philadelphia Inquirer. Santorum told the ''Pittsburgh Tribune-Review'' that he would address many geopolitical issues, and then joked, "I don't do Anna Nicole Smith, that's all." After leaving the Senate, Santorum joined the Board of Directors of Universal Health Services, a hospital management company based in King of Prussia, Pennsylvania.
On February 1, 2008, Santorum said he would vote for Mitt Romney in the 2008 Presidential Republican primary race, stating: "If you're a Republican, if you're a Republican in the broadest sense, there is only one place to go right now and that's Mitt Romney.". He has criticized John McCain, questioning his pro-life voting record and whether Sen. McCain holds true conservative values. In September 2008, Santorum expressed support for McCain, citing Sarah Palin as a step in the right direction: "Knowing McCain, he's choosing someone in whom he sees a lot of himself...He tries to find people who have a similar head as he does, and if he sees him in [Palin]...that gives me a better feel for him and a little more confidence in him." In 2011 he said McCain, who was tortured as a prisoner of war, did not understand how the "enhanced interrogation" process works.
On April 12, 2007, political action committee America's Foundation, Highmark and a former Highmark vice president were fined by the Federal Election Committee for sponsoring Santorum with corporate money. The problem had been reported by Highmark, which uncovered the matter during an internal review.
Santorum was mentioned as a candidate for Governor of Pennsylvania in 2010. At one point, he was said to have "quietly but efficiently put his fingerprints on a wide-array of conservative causes in the state." However, Santorum declined to seek the gubernatorial nomination and instead endorsed eventual winner Tom Corbett.
In the fall of 2009, Santorum hinted that he was considering a run for the Republican nomination for President of the United States in the 2012 presidential election. On September 11, 2009, Santorum spoke to a group of Catholic leaders in Orlando, Florida and told them, "I hate to be calculating, but I see that 2012 is not just throwing somebody out to be eaten, but it's a real opportunity for success." He scheduled various appearances with political non-profit organizations that took place in Iowa.
Santorum repeated his consideration of a 2012 run in an e-mail and letter sent on January 15, 2010 to supporters of his political action committee, saying, "After talking it over with my wife Karen and our kids – I am considering putting my name in for the 2012 presidential race. I'm convinced that conservatives need a candidate who will not only stand up for our views, but who can articulate a conservative vision for our country's future," he wrote. "And right now, I just don't see anyone stepping up to the plate. I have no great burning desire to be president, but I have a burning desire to have a different president of the United States". He formed a presidential exploratory committee on April 13, 2011.
Santorum formally announced his run for the Republican presidential nomination on ABC's ''Good Morning America'' on June 6, 2011, saying he's "in it to win."
{{U.S. Senator box | before=Harris Wofford | state=Pennsylvania | class=1 | years=1995–2007 | alongside=Arlen Specter | after=Bob Casey, Jr.}}
Category:1958 births Category:American political writers Category:American people of Italian descent Category:American Traditionalist Catholics Category:American writers of Italian descent Category:Animal rights advocates Category:College Republicans Category:Dickinson School of Law alumni Category:Intelligent design advocates Category:Knights of Malta Category:Living people Category:Members of the United States House of Representatives from Pennsylvania Category:Pennsylvania State University alumni Category:Pennsylvania lawyers Category:Pennsylvania Republicans Category:People from Winchester, Virginia Category:The Philadelphia Inquirer people Category:Politicians from Pittsburgh, Pennsylvania Category:Republican Party United States Senators Category:Traditionalist Catholic writers Category:United States Senators from Pennsylvania Category:United States presidential candidates, 2012 Category:University of Pittsburgh alumni Category:Writers from Pittsburgh, Pennsylvania Category:Writers from Virginia
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This text is licensed under the Creative Commons CC-BY-SA License. This text was originally published on Wikipedia and was developed by the Wikipedia community.
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