Skip to comments.Barney Frank 2003: "Fannie Mae and Freddie Mac are not facing any kind of financial crisis"
Posted on 09/20/2008 6:55:06 PM PDT by Jim Robinson
September 11, 2003
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.
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''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 ...
Time for a complete house cleaning and disinfectation of the Senate and House.
Treasure from the archives ping.
the wsj last week had a good editorial laying responsibility on frank for the mess.
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.
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.
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
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.
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!
Rock on Jim!
And in 2002 President Bush pledged 450 billion for Sub Prime mortgages from Fannie and Freddie.
Senator would you like to revise your remarks?
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.
‘’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!
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?
What’s it all about?
See 2005 Video: Fannie Mae CEO addresses Obama & the Democrat Black Caucus, his “Family”
OUTSTANDING post, Jim! Thanks.
Has the oligarchy deemed this one TOO BIG TO INVESTIGATE?
They were stunned. We must give them a pass this time. /sarc