Conrad's loan a political favor

By HAL NEFF

Bismarck

What a surprise to read about North Dakota Sen. Kent Conrad in the San Francisco Chronicle and the New York Times. Conrad is in a bind because of his private finances getting tangled up with big money lender Countrywide Financial and Chief Executive Oofficer Angelo Mozilo and a special thousands-of-dollars discount on a loan for the North Dakota senator's Delaware beach house. The senator says he didn't ask for anything special - he admitted talking to Mozilo by phone about the beach house loan and the deal was made with no favors asked.

The Wall Street Journal of June 16 and 18 editorial sections have detailed accounts of what seems to be afoot. A massive bailout of the home loan industry is in the making (think Savings and Loan bailout of the 1990s) with billions of dollars of bad loans transferred from companies like Countrywide Financial to the federally guaranteed FHA system putting the taxpayers on the hook once again. The Journal of June 21 had news that the FHA announced a loss of billions of dollars, and the coming bailout will add billions more for the taxpayers to pick up. A congressional investigation will be looking into the matter - the smell of conflict of interest is apparent even to Congress; hence, the call for an investigation.

Conrad assured North Dakotans in his letter to the Bismarck Tribune on June 20 that he got no special deal and said he paid premium price for the apartment loan. The senator would have us believe that this whole dust-up is about his apartment loan. How nice that would be for him. The reality is that Countrywide Financial CEO Mozilo knew very well who Conrad was and his position of power. Mozilo did what a CEO would do for powerful people who had legislative power over his huge home loan empire - he would accommodate him in every way possible. "Hey, nice of you to phone me, senator. A loan for a Delaware beach house? Apartment, too? Consider it done. Bye."