Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Barney Frank 2003: "Fannie Mae and Freddie Mac are not facing any kind of financial crisis"
Excerpted from NYT article ^ | September 11, 2003

Posted on 09/20/2008 6:55:06 PM PDT by Jim Robinson

September 11, 2003

New Agency Proposed to Oversee Freddie Mac and Fannie Mae

By STEPHEN LABATON

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.

~~ snip ~~

''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.

''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said.

(Excerpt) Read more at query.nytimes.com ...


TOPICS: Extended News; News/Current Events; Politics/Elections
KEYWORDS: 2003; 200307; 200309; corruption; democrats; elections; fanniemae; financialcrisis; freddiemac; housingbubble

1 posted on 09/20/2008 6:55:06 PM PDT by Jim Robinson
[ Post Reply | Private Reply | View Replies]

To: Jim Robinson

Time for a complete house cleaning and disinfectation of the Senate and House.


2 posted on 09/20/2008 6:56:19 PM PDT by Brian S. Fitzgerald
[ Post Reply | Private Reply | To 1 | View Replies]

To: TigerLikesRooster; PAR35; politicket

Treasure from the archives ping.


3 posted on 09/20/2008 6:58:08 PM PDT by Brian S. Fitzgerald
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

the wsj last week had a good editorial laying responsibility on frank for the mess.


4 posted on 09/20/2008 6:59:31 PM PDT by ken21 (people die and you never hear from them again.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Brian S. Fitzgerald

A noble thought, Jim. But what is there on the horizon that would replace the human bilge that we now have. 1994 shows that Washington is a toxic zone, corrupting the best of what we seem to be able to offer, regardless of what kind of animal they rode in on.


5 posted on 09/20/2008 6:59:45 PM PDT by Chaguito
[ Post Reply | Private Reply | To 2 | View Replies]

To: ken21

bttt


6 posted on 09/20/2008 6:59:57 PM PDT by ConservativeMan55 (Obama is the Democrats guy. They bought the ticket, now they must take the ride.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Jim Robinson
This from a Jack Kelly article today:

President Bush proposed regulatory reforms in 2003, but Congress took no action. In 2005, John McCain and three other GOP senators proposed a strong reform bill. It died when Democrats threatened a filibuster.

and then

The principal recipient of Fannie Mae's largesse was Sen. Chris Dodd (D., Conn.), chairman of the Senate Banking Committee. No. 2 was Barack Obama.

Mr. Dodd was also the second largest recipient in the Senate of contributions from Countrywide's political action committee and its employees, and the recipient of a home loan from Countrywide at well below market rates. The No. 1 senator on Countrywide's list? Barack Obama.

Fannie Mae CEO Franklin Raines was forced to resign in December, 2004, because of "accounting irregularities." The Washington Post reported July 16 that the Obama campaign has called Mr. Raines "seeking his advice on mortgage and housing policy matters."

For more of the article Here

7 posted on 09/20/2008 7:00:24 PM PDT by engrpat
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

Thanks Jim


8 posted on 09/20/2008 7:01:45 PM PDT by Sir Beowolf
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

Programs created by Democrats, lionized by Democrats, run by Democrats, protected by Democrats, and supportive of Democrats.

McCain has gotten a good start on hanging this around the Democrat candidate’s neck. Now he needs to start piling on. This is what happens when Democrat ideas become law. This is not a Republican issue in the least, other than it being a GOP administration that has to clean up this mess. Fannie, Freddie, Ginnie, whatever are Ground Zero when it comes to the current credit/housing matter. Thanks to Democrat genius the US taxpayer is on the hook for God only knows how much.


9 posted on 09/20/2008 7:02:44 PM PDT by Harry Wurzbach
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

Hey, everyone should be able to own a home in this country. Everyone, including illegal aliens! No income necessary! Step right up to Barney Frank’s ATM Machine!


10 posted on 09/20/2008 7:02:58 PM PDT by Chet 99
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

Rock on Jim!


11 posted on 09/20/2008 7:04:07 PM PDT by jwalsh07 (MSM Lied, Journalism Died. RIP 2008)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

And in 2002 President Bush pledged 450 billion for Sub Prime mortgages from Fannie and Freddie.


12 posted on 09/20/2008 7:05:00 PM PDT by trumandogz
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

Senator would you like to revise your remarks?


13 posted on 09/20/2008 7:06:10 PM PDT by woofie
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

the media’s letting bill clinton get away scott free from this.

but he signed that bill deregulating the banks in 1999.

he appointed jamie gorelick and franklin delano raines to fanny and freddy. raines made an obscene amount of money.

barney frank and chris dodd and these were using a public/private corporation for their own political correctness—

to “correct” racial injustice by asking nothing down for a house.

to line their pockets.

to contribute to their campaigns: dodd got lots of donations from fanny and freddy, as did obamao.


14 posted on 09/20/2008 7:07:49 PM PDT by ken21 (people die and you never hear from them again.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

‘’These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,’’

...and pay NO attention to the man behind the curtain!


15 posted on 09/20/2008 7:11:37 PM PDT by GWMcClintock (Right after Lib Democrats, the most dangerous politicians are country club Republicans. T. Sowell)
[ Post Reply | Private Reply | To 1 | View Replies]

Frank, Dodd, Levin, Schumer. Fire these people. Recall them. Vote them OUT. Imprison them. Freeze their assets. Deport them.

This is like the shower scene in Psycho, the first time you see it. Except we’re the Janet Leigh character.

How much is enough? Have we not finally, finally had enough?


16 posted on 09/20/2008 7:18:35 PM PDT by combat_boots (God, gun and babies. Justices, taxes and sovereignty. Otherwise known as White Trash. Count me in.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

What’s it all about?

See 2005 Video: Fannie Mae CEO addresses Obama & the Democrat Black Caucus, his “Family”

http://www.youtube.com/watch?v=usvG-s_Ssb0


17 posted on 09/20/2008 7:19:27 PM PDT by Jim Robinson
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

OUTSTANDING post, Jim! Thanks.

Has the oligarchy deemed this one TOO BIG TO INVESTIGATE?


18 posted on 09/20/2008 7:31:58 PM PDT by PGalt
[ Post Reply | Private Reply | To 1 | View Replies]

To: PGalt
Has the oligarchy deemed this one TOO BIG TO INVESTIGATE?

They were stunned. We must give them a pass this time. /sarc

19 posted on 09/20/2008 7:58:02 PM PDT by Brian S. Fitzgerald
[ Post Reply | Private Reply | To 18 | View Replies]

To: Brian S. Fitzgerald

:)


20 posted on 09/20/2008 8:08:26 PM PDT by PGalt
[ Post Reply | Private Reply | To 19 | View Replies]

To: Jim Robinson

Don’t you know it’s all Bush’s fault?

Clinton and Greenspan and the Democrats in Congress are innocent bystanders I tell ya! /s


21 posted on 09/20/2008 8:13:59 PM PDT by divine_moment_of_facts
[ Post Reply | Private Reply | To 1 | View Replies]

To: All

Mocking Barney Frank in Italian - http://www.youtube.com/watch?v=AWhEk9L5nZQ


22 posted on 09/20/2008 8:23:01 PM PDT by doug from upland (8 million views of HILLARY! UNCENSORED - put some ice on it, witch)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

apparently Barney Franks head has been pushed into a pillow the last few years...


23 posted on 09/20/2008 8:40:46 PM PDT by hercuroc
[ Post Reply | Private Reply | To 1 | View Replies]

To: Brian S. Fitzgerald

Bring extra for the Frank offices.


24 posted on 09/20/2008 9:12:54 PM PDT by A_Former_Democrat
[ Post Reply | Private Reply | To 2 | View Replies]

To: Harry Wurzbach

Programs created by Democrats, lionized by Democrats, run by Democrats, protected by Democrats, and supportive of Democrats.


We need to make sure that everyone we discuss this with Understands that it is Completely the Fault of the Democrats. This problem/crisis, like all America’s problems, is because of the Democrats. The Republicans Bear ABSOLUTELY NO Responsibility.


25 posted on 09/20/2008 9:51:50 PM PDT by FFranco
[ Post Reply | Private Reply | To 9 | View Replies]

To: Jim Robinson

‘’We welcome the administration’s approach outlined today,’’ Mr. Raines said. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company’s 18 board members.

Company executives said that the company preferred having the president select some directors. The company is also likely to lobby against the efforts that give regulators too much authority to approve its products.”

Remember folks..this guy was under investigation at the time...or near to it! No wonder he still held out for controlling who could be ‘on his board’ and see his dirty hands!

LOL..nothing like the sight of a trapped weasel trying to outsmart a fox! LOL

Keep the record coming Jim!!

Great job!


26 posted on 09/20/2008 10:02:15 PM PDT by penelopesire ("The only CHANGE you will get with the Democrats is the CHANGE left in your pocket")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson; raygun; All

“In our day people talk a great deal about inventing a new order. Is it certain that any thinker, regardless of the genius we grant him and the authority we give him, could invent and operate successfully an order superior to the one whose results I have just described?”

From...Frederick Bastiat...”Economic Harmonies”...here...

http://www.econlib.org/library/Bastiat/basHar.html

Thanks to FReeper raygun for the link.


27 posted on 09/21/2008 2:14:56 AM PDT by PGalt
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Robinson

Give ‘em hell W.


28 posted on 09/21/2008 2:38:26 AM PDT by Earthdweller (Socialism makes you feel better about oppressing people.....)
[ Post Reply | Private Reply | To 1 | View Replies]

To: FFranco

I’m looking for an answer to what happened with this proposed legislation. Do you know? The republicans were in control of all three branches at this time. What happened?


29 posted on 09/22/2008 7:48:38 AM PDT by battletank
[ Post Reply | Private Reply | To 25 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson