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New Agency Proposed to Oversee Freddie Mac and Fannie Mae (September 2003)
NY Times ^ | September 11, 2003 | By STEPHEN LABATON

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 ...


TOPICS: Business/Economy; Extended News; Politics/Elections
KEYWORDS: bush; demron; dodd; fanniemae; freddiemac; govwatch; housingbubble; obama; treasury
Bush wanted this and the Dems said no.
1 posted on 09/16/2008 8:34:50 AM PDT by Perdogg
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To: Perdogg

WE DON’T NEED ANOTHER AGENCY. PUT PEOPLE IN JAIL INCLUDING OUR GOVERNMENT STOOGES!!!!


2 posted on 09/16/2008 8:37:44 AM PDT by subterfuge (BUILD MORE NUCLEAR POWER PLANTS NOW!!!)
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To: Perdogg

What about an investigation and jail time for the culprits? That’s what is needed, not government.


3 posted on 09/16/2008 8:38:09 AM PDT by devistate one four (H I V Homophobia Is Vindicated)
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To: subterfuge

read


4 posted on 09/16/2008 8:38:19 AM PDT by snarkytart
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To: Perdogg

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.


5 posted on 09/16/2008 8:43:31 AM PDT by Iron Munro (The Alaskan landscape is littered with the bodies of those who have crossed Sarah Palin)
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To: snarkytart

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.


6 posted on 09/16/2008 8:44:30 AM PDT by whitedog57
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To: Perdogg

Is anyone reading the date on this?

2003 folks!!!


7 posted on 09/16/2008 8:44:54 AM PDT by zek157
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To: Perdogg
Yeah, that's the answer! Why didn't we think of it?

More government! That always solves the problem.

Only tool is a hammer... you know the rest.

8 posted on 09/16/2008 8:45:57 AM PDT by TChris (Democrats: Where are we going? ...and why am I in this handbasket?)
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To: Perdogg
Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.

''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

9 posted on 09/16/2008 8:53:18 AM PDT by icwhatudo
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To: Perdogg

BUMP!!


10 posted on 09/16/2008 8:54:47 AM PDT by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
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To: Perdogg

BUMP!!


11 posted on 09/16/2008 8:55:04 AM PDT by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
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To: Perdogg

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.


12 posted on 09/16/2008 8:58:14 AM PDT by Paperdoll (Duncan Hunter for Secretary of Defense!)
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To: subterfuge
PUT PEOPLE IN JAIL

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.

13 posted on 09/16/2008 9:00:43 AM PDT by FlyVet
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To: Perdogg

Great find!

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!


14 posted on 09/16/2008 9:02:55 AM PDT by icwhatudo
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To: Perdogg

which criminals from the senate will be in charge of this one?


15 posted on 09/16/2008 9:07:11 AM PDT by WOBBLY BOB (Conservatives are to McCain what Charlie Brown is to Lucy.)
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To: subterfuge

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?


16 posted on 09/16/2008 9:07:57 AM PDT by TomasUSMC
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To: FlyVet
You are so right about Gorelick. She must know where a lot of bodies are buried.

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.

17 posted on 09/16/2008 9:09:54 AM PDT by ladyjane
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To: Perdogg

>> 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?


18 posted on 09/16/2008 9:11:25 AM PDT by Nervous Tick (I've left Cynical City... bound for Jaded.)
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To: TomasUSMC

In China these guys would get a bullet in the brain, and their estate would be charged for the price of the bullet.


19 posted on 09/16/2008 9:11:28 AM PDT by dfwgator
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To: icwhatudo
You're exactly right. Giuliani did a great job slamming Obama on Sunday morning. He dared say the name Alinski when describing Obama's lack of success as a community organizer.

He'd be the perfect attack dog to wave this article around. The Repubs need to jump on stuff like this.

20 posted on 09/16/2008 9:16:46 AM PDT by FlyVet
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To: subterfuge
WE DON’T NEED ANOTHER AGENCY.

Having a regulatory agency within the Treasury department to REPLACE an incompetent congressional regulatory agency was a good idea.

21 posted on 09/16/2008 9:32:10 AM PDT by VRWCmember
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To: Perdogg

Great find. I sent it to both the RNC and to the McCain campaign.


22 posted on 09/16/2008 9:41:31 AM PDT by FlyVet
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To: Perdogg

NEED MORE details...

September 22, 2003

The bills now before Congress (HR 2575, sponsored by Congressman Baker; HR 2803, sponsored by Congressman Royce; and S. 1508, sponsored by Senators Hagel, Dole and Sununu) contain useful first steps but must go further to address the fundamental issues with respect to Fannie Mae and Freddie Mac. Similarly, the Treasury testimony, while containing useful and constructive ideas, did not address the tough questions. Indeed, the danger is that Congress and the Administration may miss the opportunity for real reform.
. http://www.aei.org/publications/pubID.19209/pub_detail.asp

[Then...]

July 28th, 2005 - Washington, D.C. - The Senate Banking Committee today approved legislation introduced by U.S. Senator Elizabeth Dole and her colleagues Chuck Hagel (R-NE) and John Sununu (R-NH) that would improve oversight of Government Sponsored Enterprises (GSE). The bill, the Federal Enterprise Regulatory Reform Act (S. 190), must now be considered by the full Senate.
http://dole.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=d692e1c0-224d-4109-ac5e-14a5cfee0af8&Month=7&Year=2005

S. 190 [109th]: Federal Housing Enterprise Regulatory Reform Act of 2005

This bill never became law. This bill was proposed in a previous session of Congress. Sessions of Congress last two years, and at the end of each session all proposed bills and resolutions that haven’t passed are cleared from the books.

Last Action: Jul 28, 2005: Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.

http://www.govtrack.us/congress/bill.xpd?bill=s109-190


23 posted on 09/16/2008 9:48:22 AM PDT by Bulwinkle
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To: ladyjane
What a pathetic joke the congressional "regulators" are.

Pay them 20 Mill, fine them six Mill for their corrupt incompetence, they walk away scot-free with 14 Mill, and get themselves another high-paying job somewhere. Campaign contributions, the Legalized System of Bribes and Kickbacks.

24 posted on 09/16/2008 9:52:22 AM PDT by FlyVet
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To: Perdogg

Obama actively OPPOSED reform of Freddie and Fannie! “and further weakened existing regulation.”

During this period[2005], Sen. Richard Shelby led a small group of legislators favoring reform, including fellow Republican Sens. John Sununu, Chuck Hagel and Elizabeth Dole.

Meanwhile, Dodd — who along with Democratic Sens. John Kerry, Barack Obama and Hillary Clinton were the top four recipients of Fannie and Freddie campaign contributions from 1988 to 2008 — actively opposed such measures and further weakened existing regulation.

http://www.washingtonpost.com/wp-dyn/content/article/20...AR2008091102841.html


25 posted on 09/16/2008 12:01:10 PM PDT by Bulwinkle
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To: Bulwinkle

The link is gone.


26 posted on 09/16/2008 12:04:27 PM PDT by Perdogg (Sen Robert Byrd - Ex community organizer)
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To: Perdogg

“During this period, Sen. Richard Shelby led a small group of legislators favoring reform, including fellow Republican Sens. John Sununu, Chuck Hagel and Elizabeth Dole. Meanwhile, Dodd — who along with Democratic Sens. John Kerry, Barack Obama and Hillary Clinton were the top four recipients of Fannie and Freddie campaign contributions from 1988 to 2008 — actively opposed such measures and further weakened existing regulation.


27 posted on 09/16/2008 12:07:37 PM PDT by Perdogg (Sen Robert Byrd - Ex community organizer)
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To: Perdogg

[trying to get link to work]
Obama actively OPPOSED reform of Freddie and Fannie! “and further weakened existing regulation.”

During this period[2005], Sen. Richard Shelby led a small group of legislators favoring reform, including fellow Republican Sens. John Sununu, Chuck Hagel and Elizabeth Dole.

Meanwhile, Dodd — who along with Democratic Sens. John Kerry, Barack Obama and Hillary Clinton were the top four recipients of Fannie and Freddie campaign contributions from 1988 to 2008 — actively opposed such measures and further weakened existing regulation.

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/11/AR2008091102841.html


28 posted on 09/16/2008 12:09:15 PM PDT by Bulwinkle
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To: Sean Hannity

Ping!


29 posted on 09/16/2008 1:57:53 PM PDT by listenhillary (Palin accomplished more in the PTA than Obama did as a community organizer)
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To: Perdogg

investigate, investigate, investigate


30 posted on 09/16/2008 3:26:14 PM PDT by elpadre (nation)
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To: Perdogg
-"At the time, the companies and their allies beat back efforts for tougher oversight by the Treasury Department, the Federal Deposit Insurance Corporation or the Federal Reserve. Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families. "

You see. It was the RATs all along that are responsible for laying the foundation to this mess.

31 posted on 09/16/2008 8:44:01 PM PDT by LibFreeUSA (..)
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To: whitedog57

>>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.

You should reconsider that. Bear Sterns was in the game they were in at least partially because of Freddie/Fannie guarantees.

See this for an interesting bit of history on that:

First Union, Bear, Stearns Price Securities Offering Backed By Affordable Mortgages (1997)
http://www.freerepublic.com/focus/f-news/2090118/posts


32 posted on 09/26/2008 7:28:50 AM PDT by FreedomPoster (Obama: Carter's only chance to avoid going down in history as the worst U.S. president ever.)
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To: Perdogg

All time great...


33 posted on 11/01/2009 5:59:55 AM PST by GOPJ (Prom rape of 15 year old? "Hug-a-thug" liberals will soon come to comfort to the rapists..)
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