Emanuel Served on Board of Directors of Failed Mortgage Giant Freddie Mac

ABC News is reporting that newly named Obama Chief of Staff Rahm Emanuel served on the Board of Directors of Mortgage giant Freddie Mac in 2000 and 2001 and failed to spot red flags that would eventually lead to the mortgage melt-down:

President-elect Barack Obama's newly appointed chief of staff, Rahm Emanuel, served on the board of directors of the federal mortgage firm Freddie Mac at a time when scandal was brewing at the troubled agency and the board failed to spot "red flags," according to government reports reviewed by ABCNews.com.

According to a complaint later filed by the Securities and Exchange Commission, Freddie Mac, known formally as the Federal Home Loan Mortgage Corporation, misreported profits by billions of dollars in order to deceive investors between the years 2000 and 2002.

Emanuel was not named in the SEC complaint (click here to read) but the entire board was later accused by the Office of Federal Housing Enterprise Oversight (OFHEO) (click here to read) of having "failed in its duty to follow up on matters brought to its attention." . . . . . More