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New Agency Proposed to Oversee Freddie Mac and Fannie Mae (MUST READ FROM 2003!! NY TIMES)
New York times ^ | September 11, 2003 | STEPHEN LABATON

Posted on 09/24/2008 7:13:39 AM PDT by Mr. K

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, [...] 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, [...]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 [...]

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[...]

... Among the groups denouncing the proposal today were [...] 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. ‘’I don’t see much other than a shell game going on here, [...]weakening the bargaining power of poorer families and their ability to get affordable housing,’’ Mr. Watt said

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


TOPICS: Business/Economy; Culture/Society; Extended News; Front Page News; Government; News/Current Events; Politics/Elections
KEYWORDS: bailout; barneyfrank; bush; democratcongress; democrats; donothingdemocrats; economy; fannie; fanniemae; financialcrisis; freddiemac; housingbubble; nytimes; presidentbush
THIS IS A MUST SEE FROM 2003 !!!

IT WAS POSTED IN RESPONSE TO ANOTHER ARTICLE BUT I THOUGHT IT DESERVED ITS OWN THREAD

I CANNOT FIND A LINK TO THE ORIGINAL STORY NBUT WE NEED TO FIND IT BEFORE THEY REMOVE IT

1 posted on 09/24/2008 7:13:41 AM PDT by Mr. K
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To: Mr. K

These same pompous jerks are now on TV saying it was Bush’s fault.


2 posted on 09/24/2008 7:16:40 AM PDT by Cold Heart
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To: Mr. K
agency proposed
3 posted on 09/24/2008 7:17:08 AM PDT by A.A. Cunningham
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To: Mr. K

the democrats in congress were (are) in the back pocket of fannie and fred. It’s interesting, that Barney Frank and Chris Dodd, still do not want to limit Fan/Fred’s influence in the mortgage market.


4 posted on 09/24/2008 7:17:25 AM PDT by fightin bronco (If you counted on America remaining passive...you counted wrong)
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To: Mr. K

5 posted on 09/24/2008 7:18:06 AM PDT by The_Victor (If all I want is a warm feeling, I should just wet my pants.)
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To: Mr. K

This may be the link you are seeking:

http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63&sec=&spon=&partner=permalink&exprod=permalink


6 posted on 09/24/2008 7:19:31 AM PDT by wheelgun
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To: Mr. K
Chris Matthews will jump on this hand grenade to keep it from injuring Obama (may he make all legs tingle) if it goes off.

The problem came from the government guaranteeing loans that no sane banker would make with his own money. Mortgages have had nothing resembling a free market for many, many years.

7 posted on 09/24/2008 7:20:44 AM PDT by KarlInOhio (The break-in of Gov. Palin's email account is the equivalent of the Watergate break-in.)
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To: Mr. K
The NY Times is a hypocritical, lying sack of sh*t. This is just one more proof of that. Is anyone surprised?

Congressman Billybob

Click here for a birthday present for the Constitution.

Latest article, "The Birthday Last Wednesday"

8 posted on 09/24/2008 7:20:49 AM PDT by Congressman Billybob (www.theacru.org)
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To: Mr. K

Thanks.


9 posted on 09/24/2008 7:26:14 AM PDT by dashing doofus (Those who are too smart to engage in politics are punished by being governed by those who are dumber)
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To: Mr. K

The link is above and I have saved copies of that article and others from a Lexis/Nexis search. Interesting reading.


10 posted on 09/24/2008 7:27:16 AM PDT by rhetorica
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To: Cold Heart

Yeah, those evil Bush policies sure caused this crisis. The Dems are a pack of liars.


11 posted on 09/24/2008 7:29:44 AM PDT by popdonnelly (I'll tell you a little secret: we're smarter and more competent than the Left.)
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To: Mr. K
Keep this bumped for the truth. Republicans TRIED to fix the problem 5 years ago and were STOPPED by Democrats.

This IS the fault of Democrats from top to bottom.

President Bush and the Republicans TRIED to fix it before it turned into a problem but Democrats were too stupid or too worried about votes to fix it.

12 posted on 09/24/2008 7:33:48 AM PDT by DouglasKC
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To: rhetorica

This news will make it to some mainstream media outlets, IMO. I heard a radio program last night with Barney Frank’s now damning testimony. Its coming out.

This sanctiomonious windbag, Barney “Fwank”, like most of his Democratic colleagues, has 20-10 hindsight and can only spin events after they occur. Obama has built his entire campaign upon things he said he would have done to avert current problems.


13 posted on 09/24/2008 7:33:59 AM PDT by dashing doofus (Those who are too smart to engage in politics are punished by being governed by those who are dumber)
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To: mombyprofession

but ... but ... but ... I thought it was all Bush’s fault!?


14 posted on 09/24/2008 7:34:10 AM PDT by FreedomHammer (Just ring? ... let freedom ROAR!)
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To: FreedomHammer

The only extent of Bush’s responsibility is that he seemed to have lost his VETO pen for a number of years.


15 posted on 09/24/2008 7:37:53 AM PDT by JimRed ("Hey, hey, Teddy K., how many girls did you drown today?" TERM LIMITS, NOW AND FOREVER!)
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To: Mr. K

WHERE THE HELL IS THE BULLY PULPIT ON THIS???!!!

Mr President, the new tone crap is KILLING US!!!

GOP, this should be pounded home again and again!


16 posted on 09/24/2008 7:38:54 AM PDT by AmericaUnited
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To: DouglasKC

Where are McCain and Palin today? Where are the congressional Repubs? They should be waving this over their heads and shouting it from the rooftops!!!!


17 posted on 09/24/2008 7:39:37 AM PDT by workerbee (Sarah Palin's very existence is a threat to the Left.)
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To: Mr. K

A NEW AGENCY? ONLY AFTER EVERYONE IS FIRED FROM THE OLD AGENCY THAT HA OVERSIGHT RESPONSIBILITY.


18 posted on 09/24/2008 7:40:25 AM PDT by edcoil
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To: wheelgun

Yes... this is great reading. But, this is the BEGINNING of this legislative proposal... where is the ENDING?

Why and when did it die?


19 posted on 09/24/2008 7:49:21 AM PDT by SomeCallMeTim ( When you find yourself going through Hell, keep going!)
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To: Mr. K
OK--going back and reading through the NY Times coverage of attempts to strengthen Fannie Mae and Freddie Mac shows that the collapse of the housing market was forseen 4 years ago and that Bush and the Republicans tried to prevent it and Democrats and Barney Frank tried to (and did) stop the increased oversight of Fannie Mae. I love this quote from the NY Times on October 3, 2004

Still, the most damaging legacy of Fannie Mae's years of unchecked growth may not be evident until the next significant economic slump. Only then, argued Josh Rosner, an analyst at Medley Global Advisors in New York, will the effects of Fannie's relaxed mortgage underwriting standards be felt. A result could be a more pronounced downturn in the real estate market and more stress on the consumer.

The move to push homeownership on people that historically would not have had the finances or credit to qualify could conceivably and ultimately turn Fannie Mae's American dream of homeownership into the American nightmare of homeownership where people are trapped in their homes,'' Mr. Rosner said. ''If incomes don't rise or home values don't keep rising, or if interest rates rose considerably, you could quickly end up with significantly more people underwater with their mortgages and unable to pay.''

20 posted on 09/24/2008 7:50:51 AM PDT by rhetorica
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To: Cold Heart

It appears the the Dem spin (lies/propaganda) is that all these mortgage/housing problems were caused by Republicans,(Phil Gramm) and deregulation.


21 posted on 09/24/2008 7:51:58 AM PDT by TruthWillWin
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To: AmericaUnited

I am with you!

KEEP THIS BUMPED AND CONTACT RUSH, HANNITY, FOX, ANYONE ELSE YOU CAN THINK OF WITH THIS REMINDER

AND CALL BAWNEY FWANKS OFFICE TOO AND ASK ABOUT IT


22 posted on 09/24/2008 7:54:05 AM PDT by Mr. K (Some days even my lucky rocketship underpants don't help)
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To: Cold Heart

Everything is Bush’s fault... BUT WHY IS BUSH NOT MENTIONING HIS EFFORTS TO AVERT THIS WHEN HE SPEAKS TO THE NATION??? WHY NOT HOLD UP THAT DAMN NEWSPAPER??
The man frustrates me.


23 posted on 09/24/2008 7:54:24 AM PDT by UltraKonservativen (( YOU CAN'T FIX STUPID!!!))
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To: rhetorica

Bump


24 posted on 09/24/2008 7:55:38 AM PDT by Ditto (Global Warming: The 21st Century's Snake Oil)
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To: Mr. K

This story should be the primary focus of a Hannity’s America show, and, to counter the “spin” of the Democrats, it should be circulated and recirculated by every means possible during the next several days.


25 posted on 09/24/2008 7:56:46 AM PDT by loveliberty2
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To: Mr. K

Ping for later.


26 posted on 09/24/2008 7:59:28 AM PDT by NoDRodee (U>S>M>C)
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To: NoDRodee

McCain should just stand up and read this news story.


27 posted on 09/24/2008 8:11:19 AM PDT by DouglasKC
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To: SomeCallMeTim
It died in January of 2007 when the Democrats took control of Congress. I kid you not. When Richard Shelby was chair of the Senate Banking Committee, he was pushing a bill, backed by the Bush administration, calling for strong oversight of Fannie and Freddie. The House passed a much weaker version that the White House did not support. There was never agreement and when the Democrats took over the move for strong oversight effectively ceases.

I've saved 4 years of Lexis-Nexis searches from the NY Times to document this. IT IS HUGE!

28 posted on 09/24/2008 8:15:15 AM PDT by rhetorica
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To: rhetorica

you should send a summary of your research to McCain and any news outlet that may be respectable.

and do it NOW before they pass this trillion dollar Piece’oCrap


29 posted on 09/24/2008 8:37:19 AM PDT by Mr. K (Some days even my lucky rocketship underpants don't help)
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To: Mr. K

I’m on it!


30 posted on 09/24/2008 8:41:11 AM PDT by rhetorica
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To: Mr. K

WOW!!! excellent find.


31 posted on 09/24/2008 8:43:47 AM PDT by jveritas (God Bless President Bush and our brave troops)
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To: aflaak

ping


32 posted on 09/24/2008 8:50:21 AM PDT by r-q-tek86 (Keep the Change)
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To: rhetorica

bump .... Fannie Mae and Freedie need to be staked and privatized.


33 posted on 09/24/2008 8:55:28 AM PDT by Centurion2000 (McCain/Palin 2008 : Palin the Paladin 2012)
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