Skip to comments.McCain proposed Reforms for Fannie/Freddie, Obama Collected Money.
Posted on 09/17/2008 5:18:41 AM PDT by Always Right
The United States Senate May 25, 2006 Statement by John McCain --------------------------------------------------- New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NY Times Sept 11, 2003 McCain - Federal Housing Enterprise Regulatory Reform Act of 2005 (Democrats blocked reform) Sponsor: Sen. Charles Hagel [R-NE]
Sen. John McCain [R-AZ]: Mr. President, this week Fannie Mae's regulator reported that the company's quarterly reports of profit growth over the past few years were "illusions deliberately and systematically created" by the company's senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae's former chief executive officer, OFHEO's report shows that over half of Mr. Raines' compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator's examination of the company's accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay.
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 1 90, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
I urge my colleagues to support swift action on this GSE reform legislation.
The United States Senate
May 25, 2006
Statement by John McCain
New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NY Times Sept 11, 2003
McCain - Federal Housing Enterprise Regulatory Reform Act of 2005 (Democrats blocked reform)
Sponsor: Sen. Charles Hagel [R-NE]
Obama = Give me the Money. McCain = Here's the Solution.
Obama = Do nothing Senator.
This is incredible material for the McCain team. They should use it not only against Obama, but include the whole Democrat criminal enterprise.
You would think McCain would be already using this. McCain’s campaign had been excellent, but the last week they are getting timid and slow. There rapid response needs a shot in the butt, IMHO.
This is a slam dunk issue.
Yep. This is a MAJOR potentially $400 BILLION bailout that has Obama's fingerprints all over it. Shoot, that is comparable to the cost of the Iraq War.
THIS certainly IS A SLAM-DUNK ISSUE. If people vote for Obama after seeing this, they are ridiculously stupid.
This info need to be BROADCAST everywhere!
This will be saved for the debates. When Obama talks about "Change" McCain can simply pooint out that he was calling for "Change" when Obama was calling for donations from Freddie Mac.
McCain can lay the financial crisis right at Obama's feet and all he can do is step in it.
You can’t hold back and wait. The opinions on these issues are being formed NOW. By the time to debate comes around, the conventional knowledge will already have been cemented and McCain will have too little time to explain it.
McCain has 85 million dollars and he's not getting any more. He needs to hold down as much as he can for as long as he can. The full effect of the financial crisis has not hit home and undoubtedly Obama is going to use it as a hammer to pound McCain as an agent of the Bush administration.
No, McCain needs to give Obama all the rope he needs to hang himself and when the time comes, he can wrap this noose around his neck and pull.
The American people, unfortunately, have a short memory and if McCain pulls this out now, Obama will call it a lie and McCain will spend 85 million dollars trying to drown out soundbites.
I would save all this stuff until the debates, when you can directly, and personally, and in front of millions of Americans, lay this whole crisis at the feet of Obama and Pelosi and Reid and show that McCain truly was and is the Maverick and the agent of Hope and Change.
Worldcom and Enron did this and people went to jail. Why aren’t demonrats demanding that those who were in charge of freddy and fannie being investigated and prosecuted?
(I know, I know, the “D” factor. William Jefferson, D, LA is still free and collecting his salary.)
But the GOP is.
But McCain and the GOP were working on reforms for Fannie and Freddie. Obama and the Democrats were running interference for them.
I believe the first debate is next week...
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