Over the past few weeks, much has been written about the development of the Chicago Climate exchange and how it has been designed to enrich key people/institutions surrounding President Obama, Al Gore and the progressive movement. Now two Republican Congressmen,Rep. Chaffetz (R-UT) and Rep. Issa (R-CA) are trying to get to the bottom of this possible scam and how it is driving the progressive Democrat’s energy policy.
The earliest roots of Chicago Climate Exchange (CCX) can be traced back to 2000, when Dr. Richard Sandor, a research professor at the Northwestern University, and the former head of the Chicago Mercantile Exchange began to study the feasibility of initiating a cap-and-trade system in the United States. At that time, Sandor owned a firm called Environmental Financial Products (EFP). Sandor also knew Illinois state senator Barack Obama, who, in addition to his legislative duties, was a board member of the Chicago-based Joyce Foundation. In 2001, Obama helped steer a $347,600 Joyce Foundation grant to Sandor’s EFP. The foundation’s president, Paula DiPerna, stated that this grant was intended to “support the design of a pilot phase for a carbon dioxide emissions trading market, called the Chicago Climate Exchange.”
In August 2001, Carlton Bartels, a partner at Cantor Fitzgerald and the chief executive officer of a company named CO2e.com, filed for a patent on the software technology that would eventually equip CCX to track the trading of residential carbon credits. One month later Bartels was killed in the 9/11 terrorist attacks on the World Trade Center. His widow subsequently sold the software to Franklin Raines, CEO of Fannie Mae, whose practice of purchasing risky mortgages from banks and then bundling and selling risky mortgages them to its investors as mortgage-backed securities would eventually send the U.S. housing market into steep decine.
You may remember Raines, he was a member of Candidate Obama’s Vice Presidential search committee. He was also the guy charged with manipulating Fannie Mae profit-and-loss reports so as to enrich himself and other Fannie Mae executives via humongous bonuses (nearly $100 million for Raines alone) even as the mortgage lender was collapsing. Raines would eventually serve as the conduit through which Bartels’ software would find its way to CCX.
In late 2001 Paula DiPerna resigned her post as Joyce Foundation president and joined the CCX, as executive vice president in charge of corporate recruitment and public policy, and President of CCX International. Soon after they recieved a second Joyce Foundation grant, for $760,100 for use to finance the 2003 “launch” of CCX with its 14 founding members, including, American Electric Power (AEP), Baxter International Inc., the City of Chicago, DuPont, Equity Office Properties Trust, Ford Motor Company, International Paper, Manitoba Hydro, MeadWestvaco Corporation, Motorola, Inc., STMicroelectronics, Stora Enso North America, Temple-Inland Inc. and Waste Management,Inc.
Now remember,all this is happening while Franklin Raines is driving Fannie Mae into the sewer.
Franklin Raines and nine partners collaborated at the end of 2002, to apply for a patent on the software technology they had purchased from Carlton Bartels’ widow,on behalf of Fannie Mae. One of those partners was former Fannie Mae vice president Scott Lesmes, who was responsible for the mortgage-bundling scheme. Another was Robert Sahadi, also a onetime Fannie Mae VP, who now runs GreenSpace Investment Financial Services out of his Maryland home.
Four years later, the U.S. Patent and Trade office approved the patent. It was on November 7, 2006, the day after the Democrats took control of Congress. The patented technology, which is now utilized by CCX, bundles CO2 and other GHGs almost in the same way Fannie Mae bundled toxic mortgages under Raines and Lesmes. The patent summary describes how carbon “and other pollutants yet to be determined” will be “combined into a single emissions pool” and traded.
Today the Chicago Exchange bills itself as “North America’s only cap and trade system for all six greenhouse gases” – meaning carbon dioxide, methane, nitrous oxide, sulfur hexafluoride, perfluorocarbons, and hydrofluorocarbons. The company now has roughly 300 multinational members representing a wide array of industries such as automotive, manufacturing, chemicals, electronics, pharmaceuticals, steel, and transportation. Among the more well-known members are Ford Motor Company, Dow Corning, DuPont, Kodak, Motorola, Sony, Bank of America, Honeywell International, Safeway, IBM, and Intel Corporation.
CCX members are defined as entities that produce “direct GHG emissions” in the course of their normal business activities. These members agree to make a “legally binding emission reduction commitment” to lower their aggregate emissions by at least 6 percent over a six-year period. CCX says that in return for this, the members will be “internationally recognized as environmentally progressive leaders in their industries.”
CCX global affiliates now include the European Climate Exchange, Montréal Climate Exchange, and Tianjin Climate Exchange (in China). Moreover, CCX itself has become the subsidiary of a London-based firm, Climate Exchange PLC, which also owns European Climate Exchange and is headed by CCX founder Richard Sandor.
By Sandor’s reckoning, cap-and-trade represents a $10 trillion-per-year market. Recognizing the enormous profit potential, Generation Investment Management (GIM), a carbon-offset company whose chairman and founding partner is Al Gore – purchased a 10 percent stake in CCX and became the company’s fifth largest co-owner. In 2006, Goldman Sachs also purchased a 10 percent share of CCX.
One particularly noteworthy CCX board member is Maurice Strong, a former Secretary General of the 1992 United Nations Conference on Environment and a leading architect of the 1997 Kyoto Protocol, an international agreement that set binding GHG-reduction targets for 37 industrialized countries. Strong has a history of insider-trading transgressions. (Source Discoverthenetworks)
So now you have the same crooked people who have contributed to the financial meltdown, Goldman Sachs, Fannie Mae, and the progressive movement actually trying to “fix” the economy and the environment. But for everyone to get rich from their investments the last piece of the puzzle is needed, a government directed Cap and Trade system. Hence Senator Kerry’s American Power Act which was introduced the other day .
The Bill is the progressives dream, a combination of redistribution of income and enriching some of the progressives most favorite leaders. Thankfully two congressman, Rep. Chaffetz (R-UT), along with Rep. Issa (R-CA) are trying to get to the bottom of the Chicago Carbon Exchange. The two Congressmen sent a letter to David Kappos, the Director of the U.S. Patent and Trademark Office, as well as Michael Williams, President and CEO of Fannie Mae, seeking information concerning a patent issued to Fannie Mae regarding the residential Cap and Trade system.
“I have serious questions about why Fannie Mae, back in 2005, was working on a Cap and Trade scheme,” said Rep. Chaffetz. “Why would they be spending their resources on something that is well outside of the scope of Fannie Mae’s charter? We want to see all the information relating to the patents issued to these ‘inventive’ former Fannie Mae executives?”
“Having ventured far beyond sub-prime lending policies, Fannie Mae appears to have served as a full-blown liberal think tank for crony-capitalist ideas,” said Rep. Issa. “While the crony-capitalist Democrats who ran Fannie Mae like Franklin Raines and Jim Johnson used these kinds of ideas to enrich themselves, it was the American taxpayers who were left holding the bag after they failed. It’s disturbing that Fannie Mae executives were positioning themselves in 2005 for financial gain from an Obama Administration cap-and-trade system, but given the huge amount of campaign contributions Fannie Mae poured over President Obama it should be no surprise.”
The letter to Fannie Mae requests:
- A full and complete explanation of Fannie Mae’s decision to file the patent application (Patent No.: 6,904,336).
- All records and communications referring or relating to the decision to file the patent application (Patent No.: 6,904,336).
- All records and communications referring or relating to the development of Fannie Mae’s position on cap-and-trade legislation proposed between 2002 and the present.
- All records and communications referring or relating to Fannie Mae’s lobbying efforts related to cap-and-trade legislation between 2002 and the present.
- All records and communications referring or relating to Fannie Mae’s projection of potential financial returns to the company if cap-and-trade legislation were to become law.
- All records and communications referring or relating to legislation affecting energy markets between Fannie Mae or its representatives and the following people:(a) Franklin Raines;(b) G. Scott Lesmes;(c) Robert Sahadi;(d) Kenneth Berlin;(e) Michelle Desiderio;(f) Elizabth Arner Cavey;(g) Jane Bartels;(h) Representatives of CO2e.com LLC, CantorCO2e, Cantor Fitzgerald, or Mitsui & Co., Ltd.
Both of these Congressmen should be congratulated for trying to protect the people of this country from what may very well be a criminal conspiracy to control much of the US Economy.
The Full Text of both letters is embedded below: