Jamie Gorelick Disproves The “Peter Principle”

According to Wikipedia, The Peter Principle was formulated in the 1969 book of the same name by Dr. Laurence J. Peter and Raymond Hull.  The Principle holds that “in a hierarchy, members are promoted so long as they work competently.  Sooner or later they are promoted to a position at which they are no longer competent (their ‘level of incompetence’), and there they remain, being unable to earn further promotions.”  It must not apply in government.

As proof, I give you former Clinton advisor Jamie Gorelick.  Ms. Gorelick, designated the “Mistress of Disaster” at Ace’s place, has a long history of public service.  By “public service,” I mean royally screwing things up while getting rich.  She has repeatedly risen to new heights of incompetence.

In 1995, while in the Clinton Justice department, Gorelick wrote a memo outlining “Instructions on Separation of Certain Foreign Counterintelligence and Criminal Investigations” for the investigation of the 1993 World Trade Center bombing by criminal investigators and intelligence officers.  Gorelick wrote that this memo established “procedures, which go beyond what is legally required, [t]o prevent any risk of creating an unwarranted appearance that FISA is being used to avoid procedural safeguards which would apply in a criminal investigation.” (Emphasis added.)  After the 9/11 attacks, Attorney General John Ashcroft testified that Gorelick’s “wall” was a “structural cause” of the government’s inability to connect the dots that, if connected, possibly would have allowed us to prevent the 9/11 attacks.

In 1997, Ms. Gorelick left the Justice Department to serve as vice chairman of Fannie Mae, where she was paid over $26 Million over five years.  While at Fannie Mae, Gorelick announced that it would be buying subprime loans and bundling them as securities:

“Fannie Mae will buy [Community Reinvestment Act] CRA loans from lenders’ portfolios; we’ll package them into securities; we’ll purchase CRA mortgages at the point of origination; and we’ll create customized CRA-targeted securities,” she said in 2001. “This expanded approach has improved liquidity in the secondary market for CRA product, and has helped our lenders leverage even more CRA lending. Lenders now have the flexibility to use their own, customized loan products.”

Specifically, Gorelick emphasized that Fannie Mae would be buying high risk loans to encourage lenders to make sub-prime loans to low-income applicants:

“We will take CRA loans off your hands–we will buy them from your portfolios, or package them into securities–so you have fresh cash to make more CRA loans,” she said. “Some people have assumed we don’t buy tough loans. Let me correct that misimpression right now. We want your CRA loans because they help us meet our housing goals.”

(Emphasis added.) 

Securitized sub-prime loans are the Mad Dog 20/20 that fueled the housing bender that led to the crippling hangover of the current housing slump and overall economic malaise.  Fannie Mae’s lost weekend alone cost taxpayers $100 billion in liquidity hair of the dog, with an unknown amount of future liability.

Now, Ms. Gorelick is reportedly on the Obama Administration’s short list to be the next director of the FBI when current Director Robert Mueller’s 10-year term expires.

What could possibly go wrong?

UPDATE: Ed Morrissey smells a rat:

Barack Obama has certainly shown plenty of executive incompetence in his two-plus years as President and nominated some unqualified and extreme people to important positions — but no one is this stupid. . . .  This isn’t even a trial balloon.  It’s a brick that nonetheless serves one purpose — to make all of the other candidates look good by comparison.

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Published in: on March 24, 2011 at 10:59 am  Leave a Comment  

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