Skip to comments.Barney Frank: The Community Reinvestment Act Was a ‘Republican Failure’
Posted on 10/12/2011 10:59:56 PM PDT by neverdem
In today’s Wall Street Journal:
Asked who was to blame for the 2008 financial crisis and whether any bankers should have been prosecuted, Mrs. Bachmann and former House Speaker Newt Gingrich put the onus on the federal government, with Mr. Gingrich suggesting that former Senate Banking Chairman Chris Dodd and Rep. Barney Frank, former chairman of the House Financial Services Committee, should both be jailed.
“It was the federal government that pushed the subprime loans . . . that pushed the community reinvestment act,” said Mrs. Bachmann, citing what she considered the causes of the housing meltdown.
Mr. Frank released an emailed statement in response: “In fact, Chris Dodd and I were in the minority from 1995 until 2006, so Gingrich is blaming us for Republican failures.”
So panicked is the response from Congressman “I want to roll the dice a little bit more in this situation towards subsidized housing” Frank that he forgets that from May 2001 to the end of 2002, Democrats controlled the Senate and Dodd was the second-ranking Democrat on the committee after chairman Paul Sarbanes.
It is also revealing that Frank believes that Bush-administration assent to policies he supported means that the consequences of those policies are, ipso facto, “Republican failures.” As Peter Wallison lays out on the Journal’s op-ed page, you can blame Wall Street for reckless gambling on mortgage-backed securities all you want, but the risk of the mortgage-backed securities never takes off unless the federal government starts pushing lenders to lower their standards for worthy borrowers. Sure, the big-bank investors never should have gone dancing in the minefield, but the minefield was set up by federal policies that encouraged massive loans to “borrowers with blemished credit, or were loans with no or low down payments, no documentation, or required only interest payments.”
It is rather amazing that with laughably inaccurate defenses like this, Frank is still considered a significant voice in the Democratic party today.
Frank in panic mode. Good.
I wonder how many handkerchiefs it would take in front of Barney Frank’s mouth to contain the spittle produced during his full explanation of how the CRA and the pressure exerted by Janet Reno and the Clinton justice department upon banks was a “Republican failure”?
Would that be a 2-handkerchief explanation or a threefer? Perhaps one of those plastic 5-gallon Home Depot buckets would be a more “conservative” approach.
Of course, with the HD bucket, there would probably be room for his explanation of how astute (or in Barney’s case, ASSTOOT) his Dodd-Frank bill was in addressing systemic financial problems.
Satan’s biggest victory is convincing so many that he doesn’t even exist.
The Democrats’ biggest victory is convincing so many that they EVER tell the truth.
Hopefully, if we can get this ship righted, Frank and his cohorts will be fully investigated and held accountable for all the grief they caused Americans. At the very least, he needs to be made afraid to show his face in public.
Frank actually said, “Wepublican failure”.
The piece of filth Frank figures that if he can get away with blaming his boyfriend for running a homo prostitution ring out of their apartment, he can get away with anything.
When Michelle brought all that up during the debate I could just picture/hear Bawney spittin' and sputterin'. I hope, someday, that we have the opportunity to make him soil his britches.
Yes he is. The bastard caused and or allowed all of this crap.
The Community Re-investment Act started under Jimmy Carter.
During the Clinton administration, then attorney general Janet Reno falsely accused the banks of red-lining and threatened them with all kind of unpleasant consequences unless they gave home loans to people who couldn’t afford to pay them back, including illegal aliens.
And we wonder why it all went bad.
Frank needs to be in chains and pressed onto a sharp metal cone until he’s split in half. Don’t care he’ll probably like it for awhile.
Media Mum on Barney Frank's Fannie Mae Love Connection:
Democratic House Financial Services Committee Chair promoted GSEs while former 'spouse' was Fannie Mae executive
By Jeff Poor
Business & Media Institute, 9/24/2008
"Frank, who is openly gay, had a relationship with Herb Moses, an executive for the now-government controlled Fannie Mae. The column revealed the two had split up at the time but also said Frank was referring to Moses as his "spouse." Another Washington Post report said Frank called Moses his "lover" and that the two were "still friends" after the breakup.
Frank was and remains a stalwart defender of Fannie Mae, which is now under FBI investigation along with its sister organization Freddie Mac, American International Group Inc. (NYSE:AIG) and Lehman Brothers (NYSE:LEH) all recently participants in government bailouts. But Frank has derailed efforts to regulate the institution, as well as denying it posed any financial risk."
Lawmaker Accused of Fannie Mae Conflict of Interest
By Bill Sammon, October 03, 2008
WASHINGTON -- Unqualified home buyers were not the only ones who benefitted from Massachusetts Rep. Barney Franks efforts to deregulate Fannie Mae throughout the 1990s.
So did Franks partner, a Fannie Mae executive at the forefront of the agencys push to relax lending restrictions.
Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannies assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie.
Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical.
"Its absolutely a conflict," said Dan Gainor, vice president of the Business & Media Institute. "He was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive. How is that not germane?
"If this had been his ex-wife and he was Republican, I would bet every penny I have - or at least whats not in the stock market - that this would be considered germane," added Gainor, a T. Boone Pickens Fellow. "But everybody wants to avoid it because hes gay. Its the quintessential double standard."
A top GOP House aide agreed.
"Cmon, he writes housing and banking laws and his boyfriend is a top exec at a firm that stands to gain from those laws?" the aide told FOX News. "No media ever takes note? Imagine what would happen if Franks political affiliation was R instead of D? Imagine what the media would say if [GOP former] Chairman [Mike] Oxleys wife or [GOP presidential nominee John] McCains wife was a top exec at Fannie for a decade while they wrote the nations housing and banking laws."
Franks office did not immediately respond to requests for comment.
Frank met Moses in 1987, the same year he became the first openly gay member of Congress.
"I am the only member of the congressional gay spouse caucus," Moses wrote in the Washington Post in 1991. "On Capitol Hill, Barney always introduces me as his lover."
The two lived together in a Washington home until they broke up in 1998, a few months after Moses ended his seven-year tenure at Fannie Mae, where he was the assistant director of product initiatives. According to National Mortgage News, Moses "helped develop many of Fannie Maes affordable housing and home improvement lending programs."
Critics say such programs led to the mortgage meltdown that prompted last months government takeover of Fannie Mae and its financial cousin, Freddie Mac. The giant firms are blamed for spreading bad mortgages throughout the private financial sector.
Although Frank now blames Republicans for the failure of Fannie and Freddie, he spent years blocking GOP lawmakers from imposing tougher regulations on the mortgage giants. In 1991, the year Moses was hired by Fannie, the Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for two- and three-family homes, even though they were defaulting at twice and five times the rate of single homes, respectively.
Three years later, President Clintons Department of Housing and Urban Development tried to impose a new regulation on Fannie, but was thwarted by Frank. Clinton now blames such Democrats for planting the seeds of todays economic crisis.
"I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac," Clinton said recently.
Bill Sammon is FOX News' Washington Deputy Managing Editor.
Rush Limbaugh's Barney Frank/"Banking Queen" parody of ABBA's "Dancing Queen" (fun-nee!):
So sayeth a failure of genetics...
You notice how this Part of the Debate is hardly mentioned anywhere. The false Narrative still is the Dominate one,especially with these Useful Idiots on WALL ST. You think the news media could connect the Dots now that this was front and center of the Debates
AFFIRMAT**Y if not a big Amen! Jail may be too good though.
Barney & Dodd are different sides of the worst street in a sleazy neighborhood. Hard to say what’s worse, their conduct or that of the colleagues who condoned it.
Yup - Illegals and "Holder's People."