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DEBATE FACT #2: WHEN OBAMA WAS “SILENT,” JOHN MCCAIN WAS WORNING ABOUT FREDDIE AND FANNIE

Summary:.

John McCain warned two years ago about Freddie and Fannie while Barack Obama was taking their contributions.

The Facts About John McCain’s Record:

John McCain Fought For Greater Oversight Of Fannie Mae And Freddie Mac

John McCain Cosponsored The Federal Housing Enterprise Regulatory Reform Act Of 2005. “’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. … I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation.” (Office Of U.S. Senator John McCain, “McCain Statement On Co-Sponsorship Of The Federal Housing Enterprise Regulatory Reform Act Of 2005,” Press Release, 5/26/06)

· At The Time, John McCain Warned That “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…” “I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, 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.” (Office Of U.S. Senator John McCain, “McCain Statement On Co-Sponsorship=2 0Of The Federal Housing Enterprise Regulatory Reform Act Of 2005,” Press Release, 5/26/06)

John McCain Co-Sponsored The Federal Enterprise Regulatory Reform Act of 2003 Which Would Have Created The Office of Federal Enterprise Supervision In The Treasury, And Given The New Office’s Director Supervisory And Regulatory Authority Over Fannie Mae And Freddie Mac. (S. 1508, Introduced 7/31/03)

The Washington Post: In 2006, John McCain Pushed For Fannie And Freddie Regulation While “Obama Was Notably Silent.” “In 2006, he pushed for stronger regulation of Fannie Mae and Freddie Mac — while Mr. Obama was notably silent. ‘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,’ Mr. McCain warned at the time.” (Editorial, “’Always For Less Regulation’?” The Washington Post, 9/19/08)

· McClatchy: John McCain Called For Increased Regulation Of Fannie Mae And Freddie Mac. “In 2006, he called for tighter regulation of Fannie Mae and Freddie Mac, the two federally chartered, privately run mortgage giants that the government now has taken over.” (Steve Thomma, “Out Of Bounds! Obama Misstates McCain’s Position On Regulation,” McClatchy Newspapers, 9/20/08)

The Facts About Barack Obama’s Record:

Barack Obama Was “Notably Silent” On Fannie Mae And Freddie Mac

In Just Four Years, Barack Obama Has Received More Money >From Fannie Mae And Freddie Mac Than Any Other Member Of Congress In The Past Two Decades (Since 1989) Except Senate Banking Committee Chairman Sen. Chris Dodd. (Lindsay Renick Mayer, “Fannie Mae And Freddie Mac Invest In Lawmakers,” Center For Responsive Politics’ “Capital Eye” Blog, www.opensecrets.org, 9/11/08)

The Washington Post: “Two Members Of Mr. Obama’s Political Circle, James A. Johnson And Franklin D. Raines, Are Former Chief Executives Of Fannie Mae.” (Editorial, “Tough Decision Coming,” The Washington Post, 8/28/08)

Obama Adviser Jim Johnson Is The Former CEO Of Fannie Mae. “There is no public policy reason to exempt them. It is not fair.’ Inside Fannie Mae’s sprawling Wisconsin Avenue headquarters,=2 0Lightfoot’s proposal set off alarms. A team of executives led by chief executive Jim Johnson and Vice Chairman Frank Raines gathered around the firm’s 34-foot-long boardroom table to decide how to respond.” (David A. Vise, “Fannie Mae Lobbies Hard To Protect Its Tax Break,” The Washington Post, 1/16/95)

The Obama Campaign Has Solicited Franklin Raines, Who “Stepped Down As Fannie Mae’s Chief Executive Under The Shadow Of A $6.3 Billion Accounting Scandal,” For “Advice On Mortgage And Housing Policy.” (Anita Huslin, “On The Outside Now, Watching Fannie Falter,” The Washington Post, 7/16/08)

Former President Bill Clinton Said Democrats Bear Responsibility For Resisting Any Efforts To Reform Freddie And Fannie

Former President Bill Clinton: “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.” (ABC’s “Good Morning America,” 9/25/08)