Senate Housing Reform Champions Made Money Off of Housing Collapse
Two senators taking the lead in housing finance reform made considerable profit betting against the housing market – albeit probably without knowing they were doing so.
Sen. Mark Warner (D-Va.) and Sen. Bob Corker (R-Tenn.) are currently the sponsors of the Corker-Warner Bill, which aims to reform Fannie Mae and Freddie Mac. But during the run-up to the financial crisis, Corker and Warner (who was then the governor of Virginia) were invested in a fund that made significant profits from Goldman Sachs products designed to bet against the real estate market, according to Yahoo Finance.
Both Corker and Warner have reported millions of dollars of income from the fund, according to Yahoo Finance – although there’s no evidence that either was aware of the fund’s strategy of betting specifically against the real estate market.