Skip to comments.New Agency Proposed to Oversee Freddie Mac and Fannie Mae (September 2003)
Posted on 09/16/2008 8:34:50 AM PDT by Perdogg
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac -- which together have issued more than $1.5 trillion in outstanding debt -- is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
(Excerpt) Read more at query.nytimes.com ...
WE DON’T NEED ANOTHER AGENCY. PUT PEOPLE IN JAIL INCLUDING OUR GOVERNMENT STOOGES!!!!
What about an investigation and jail time for the culprits? That’s what is needed, not government.
Sell off the portfolios and shut them down.
Get the government out of the private finance business!
Freddie and Fannie are just vehicles for congressional back-door wealth redistribution by using them to finance bad loans guaranteed by taxpayers.
Yes, the Dems dragged their feet on this one. When Shelby chaired the Senate Banking Committee, they made progress. But when the Dems won the Senate back, the corrupt Chris Dodd stalled all progress. Look at Fannie Mae’s contributions to Chris Dodd!
In “defense” of Fannie and Freddie, Bear Stearns, Lehman Bros (aka, Lemur Bros), Merrill Lynch and AIG have all crashed or are crashing and have nothing to do with Fannie and Freddie.
The Repubs screwed up by focusing so intently on F&F that their own “friends,” BS, Lehman, ML and AIG, were allowed to become dangerous (a systemic risk).
So, while I agree with Mike Church and others that government should not be in the mortgage market, government should not be in mortgage market through bailouts of Wall Street firms either.
Is anyone reading the date on this?
More government! That always solves the problem.
Only tool is a hammer... you know the rest.
''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
THIS WILL NOT SEE THE LIGHT OF DAY-REPUBLICANS ARE TOO INEPT TO USE IT. CARVILLE WOULD BE ON EVERY NEWS SHOW WAIVING A COPY OF THIS ARTICLE
Mr. Bush, what other damage will you accomplish before leaving office?
As a very wise woman recently said, “government is the problem, not the solution”. Your legacy? Ushering us into the New World Order! No doubt the former American people will paste huge photographs of you all over the country, and you will take your place beside Lenin and Mao.
Yep. Audit them, find out who deliberately cooked the books. Wishful thinking. Certain people, like Gorelick, seem untouchable. They must know where too many bodies are buried.
Everyone-lets email this out to at least 3 media types/bloggers. I just sent it to Drudge, Malkin, and my local talk radio guy. Please help get this out there!
which criminals from the senate will be in charge of this one?
PUT PEOPLE IN JAIL
x ACT LEEEEEEEE
It like adding more police without the power to even arrest anyone.
Hell, how many federal employees do we have allready?
She had no experience when she was appointed to Fannie Mae and left with 26 million in her pocket. She's a big buddy of Robert Steel (Chairman of the Board of Trustees at Duke and now heading up Wachovia) and she's now defending Duke in the lacrosse case. As soon as she makes her millions there she'll move on to the dismantling of Wachovia.
>> Bush wanted this
Another damned government agency full of incompetent lazy bureaucratic sh!theads — with full benefits and guaranteed cushy pension no doubt. Wonderful.
I thought Republicans were in favor of LESS government?
In China these guys would get a bullet in the brain, and their estate would be charged for the price of the bullet.
He'd be the perfect attack dog to wave this article around. The Repubs need to jump on stuff like this.
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