| Jim Leach, Republican of Iowa |
2005 Alan Greenspan told Congress how urgent it was for it to act in the
clearest possible terms: If Fannie and Freddie ``continue to grow,
continue to have the low capital that they have, continue to engage in the
dynamic hedging of their portfolios, which they need to do for interest
rate risk aversion, they potentially create ever-growing potential systemic
risk down the road,'' he said. ``We are placing the total financial system of
the future at a substantial risk.'' Kevin Hassett Bloomberg.com
clearest possible terms: If Fannie and Freddie ``continue to grow,
continue to have the low capital that they have, continue to engage in the
dynamic hedging of their portfolios, which they need to do for interest
rate risk aversion, they potentially create ever-growing potential systemic
risk down the road,'' he said. ``We are placing the total financial system of
the future at a substantial risk.'' Kevin Hassett Bloomberg.com
Jim Johnson (Democrat)
1991 to 1998, chairman and CEO Fannie Mae
(OFHEO) report from September 2004 found that Johnson as CEO of
Fannie Mae had improperly deferred $200 million in expenses resulting
allowing Johnson to pocket $21million.
1991 to 1998, chairman and CEO Fannie Mae
(OFHEO) report from September 2004 found that Johnson as CEO of
Fannie Mae had improperly deferred $200 million in expenses resulting
allowing Johnson to pocket $21million.
- Served in the Carter Administration 1977-1981
- campaign manager for Walter Mondale's failed 1984 presidential
bid - Chaired the vice presidential selection committee for the
presidential campaign of John Kerry - Former adviser to Democratic presidential candidate Barack Obama
- 1991 to 1998, chairman and CEO Fannie Mae
In the most basic terms, the financial crisis has taken place because of the following:
into the ground.
also pocketing millions while running those institutions into the ground.
pocketing millions while running those institutions into the ground.
- Beginning 1995 the Federal Government forced lending institutions to lend money to
people who traditionally did not meet the requirements of the banking world.
into the ground.
also pocketing millions while running those institutions into the ground.
pocketing millions while running those institutions into the ground.
- As soon as the sharp increase in fuel prices hit the US, the people who should have never
received a house loan are unable to make ends meet and therefore cannot make their
home loan payments. - Suddenly groups like Fannie and Freddy have run out of money and, in turn, many other
related institutions go broke. - Our banking system can no longer afford the risk of lending money, creating an economy
that cannot grow. Likewise, because no one is buying housing, the value of homes has
plummeted, meaning that the people who purchased homes during the government created
lending frenzy, when housing values were at their peak have lost, in some cases, hundreds
of thousands of dollars in the value of their homes. - Some of our lending institutions and the housing market have collapsed because of
government. The same people that have created this mess, the ones that want to take over
our health care system, are the same people now demanding that we give them even more
control over our financial system. No thank you! Below are the faces of some of the key
players in this disaster.
Franklin Raines (Democrat)
1999-2004 CEO Fannie Mae. Receives $52.8 million in bonuses
reached by manipulating accounting
1999-2004 CEO Fannie Mae. Receives $52.8 million in bonuses
reached by manipulating accounting
- Served in the Carter Administration 1977 to 1979
- 1991-1996 Fannie's Mae's Vice Chairman
- 1996-1998 Clinton Administration Director of the U.S. Office of
Management and Budget. - 1999-2004 Fannie Mae as CEO. Receives $52.8 million in
bonuses reached by manipulating accounting - Adviser to Obama campaign
- Steered business to Country Wide
| — Thomas Jefferson — Thomas Jefferson |
''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,'' Melvin L. Watt, Democrat of North Carolina
Finally in 2005 "for the first time in history, a serious Fannie and Freddie reform bill was
passed by the Senate Banking Committee. The bill gave a regulator power to crack down,
and would have required the companies to eliminate their investments in risky
assets."Bloomberg.com
"But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line
vote in the committee, signaling that this would be a partisan issue. Republicans, tied in
knots by the tight Democratic opposition, couldn't even get the Senate to vote on the
matter." Bloomberg.com
agency to another and in the process weakening the bargaining power of poorer families
and their ability to get affordable housing,'' Melvin L. Watt, Democrat of North Carolina
Finally in 2005 "for the first time in history, a serious Fannie and Freddie reform bill was
passed by the Senate Banking Committee. The bill gave a regulator power to crack down,
and would have required the companies to eliminate their investments in risky
assets."Bloomberg.com
"But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line
vote in the committee, signaling that this would be a partisan issue. Republicans, tied in
knots by the tight Democratic opposition, couldn't even get the Senate to vote on the
matter." Bloomberg.com
| 2004 Video of Dems bashing Freddie and Fannie regulation. |
Angelo Mozilo
Chairman of the board and chief executive officer of Countrywide
Financial until July 1, 2008.
Chairman of the board and chief executive officer of Countrywide
Financial until July 1, 2008.
- 2001–06 compensation approached $200 million.
- Former CEO's of Fannie, Jim Johnson and Franklin Raines
received millions of dollars in sweetheart loans from Mozilo.
- Fannie Mae, the biggest buyer of Countrywide's mortgages:
- Countrywide was on the verge of bankruptcy but saved at the last
moment by being purchased by Bank of America.
Fannie Mae and Freddie Mac? They basically guarantee that the interest and principal will be
paid on housing loans whether or not the original borrower pays.
paid on housing loans whether or not the original borrower pays.
These are the key players that pocketed millions while running Freddie Mac, Fannie Mae and
Countrywide Financial into the ground. They're all Democrats and all tightly connected to the
inner circle of the Democratic Party. With shady loans, illegal accounting and millions of
dollars stolen, these people should be in prison. Instead they have moved on to prosper
elsewhere. Johnson and Raines actually went on to advise Barrack Obama.
Countrywide Financial into the ground. They're all Democrats and all tightly connected to the
inner circle of the Democratic Party. With shady loans, illegal accounting and millions of
dollars stolen, these people should be in prison. Instead they have moved on to prosper
elsewhere. Johnson and Raines actually went on to advise Barrack Obama.
Fannie Mae engaged in "extensive financial fraud" over six years by doctoring earnings so
executives could collect hundreds of millions of dollars in bonuses.
Settlement with Fannie Mae that includes $400 million in penalties for misstating earnings by
about $10.6 billion from 1999-2004. Washington Post
executives could collect hundreds of millions of dollars in bonuses.
Settlement with Fannie Mae that includes $400 million in penalties for misstating earnings by
about $10.6 billion from 1999-2004. Washington Post
Jamie Gorelick (Democrat)
1997-2003 Vice Chair of Fannie Mae (No background in finance or real
estate but pocketed $26 million dollars)
1997-2003 Vice Chair of Fannie Mae (No background in finance or real
estate but pocketed $26 million dollars)
- 1993-1997 Clinton Administration
- 1997-2003 Vice Chair of Fannie Mae (No background in finance
or real estate but pocketed $26 million dollars) - "Fannie Mae's management directed employees to manipulate
accounting and earnings to trigger maximum bonuses for senior
executives from 1998 to 2003." - Gorelick, has never been charged with any wrongdoing.
Fannies code of conduct, a spokesman said, "requires the disclosure of potential conflicts of
interest and prohibits acceptance of substantial gifts, including loans with preferential terms,
from an organization seeking to do business with the company without prior review and
approval by the company."
interest and prohibits acceptance of substantial gifts, including loans with preferential terms,
from an organization seeking to do business with the company without prior review and
approval by the company."
"The party is over for this no-regulation, no-supervision, anything-goes
so-called free market, which has taken us to this place. Clearly the Bush
economic policies have failed. Do we need any further evidence?" Reuters
so-called free market, which has taken us to this place. Clearly the Bush
economic policies have failed. Do we need any further evidence?" Reuters
April 11, 1997 New York Times
House Banking Chief Wants Freddie Mac Bond Inquiry
The chairman of the House Banking Committee called today for an
investigation into the investment practices of Freddie Mac, the
Congressional-chartered, shareholder-owned mortgage finance company,
saying it had abused the preferential borrowing terms it enjoys through its
ties to the Government.
Republicans in Congress have questioned over the last several years
whether Freddie Mac and its larger competitor, Fannie Mae -- the Federal
National Mortgage Association -- should continue to receive an array of
benefits from their close ties to the Government, including apparent
Federal guarantees of their debt.
House Banking Chief Wants Freddie Mac Bond Inquiry
The chairman of the House Banking Committee called today for an
investigation into the investment practices of Freddie Mac, the
Congressional-chartered, shareholder-owned mortgage finance company,
saying it had abused the preferential borrowing terms it enjoys through its
ties to the Government.
Republicans in Congress have questioned over the last several years
whether Freddie Mac and its larger competitor, Fannie Mae -- the Federal
National Mortgage Association -- should continue to receive an array of
benefits from their close ties to the Government, including apparent
Federal guarantees of their debt.
Community Reinvestment Act: Passed into law by the 95th United
States Congress in 1977 and signed into law by President Carter. CRA
was a well-intended Carter-era law designed to encourage minority
home ownership. The CRA basically forced lending institutions of the
US to lend to people who normally would not meet the requirements of
lending institutions, in an effort to help low income families become
home owners and small business owners.
States Congress in 1977 and signed into law by President Carter. CRA
was a well-intended Carter-era law designed to encourage minority
home ownership. The CRA basically forced lending institutions of the
US to lend to people who normally would not meet the requirements of
lending institutions, in an effort to help low income families become
home owners and small business owners.
Clinton Administration Changes Community Reinvestment Act: The
Clinton administration basically created the market for high-risk loans.
"Tough new regulations forced lenders into high-risk areas where they
had no choice but to lower lending standards to make the loans that
sound business practices had previously guarded against making. It was
either that or face stiff government penalties." Investors Business Daily
For instance: Lending institutes basically have a CRA rating. CRA
ratings grade how compliant lending institutions are when it comes to
lending to high risk individuals and minorities. Under Clinton's new
rules, "Failure to comply meant your bank might not be allowed to
expand lending, add new branches or merge with other companies." IBD
In an effort to increase their CRA ratings, lending institutions
abandoned decades old lending practices and began lending to people
who would have never received loans under prior traditional, sound
lending practices.
This was a mistake on the part of Clinton feel good policies. We all
make mistakes and this one, as with most mistakes could have been
corrected. Unfortunately, as will be seen, certain people were steadfast
against any reform after repeated warnings of the potential
circumstances.
Clinton administration basically created the market for high-risk loans.
"Tough new regulations forced lenders into high-risk areas where they
had no choice but to lower lending standards to make the loans that
sound business practices had previously guarded against making. It was
either that or face stiff government penalties." Investors Business Daily
For instance: Lending institutes basically have a CRA rating. CRA
ratings grade how compliant lending institutions are when it comes to
lending to high risk individuals and minorities. Under Clinton's new
rules, "Failure to comply meant your bank might not be allowed to
expand lending, add new branches or merge with other companies." IBD
In an effort to increase their CRA ratings, lending institutions
abandoned decades old lending practices and began lending to people
who would have never received loans under prior traditional, sound
lending practices.
This was a mistake on the part of Clinton feel good policies. We all
make mistakes and this one, as with most mistakes could have been
corrected. Unfortunately, as will be seen, certain people were steadfast
against any reform after repeated warnings of the potential
circumstances.
| Jimmy Carter (Dem) President 1977-1981 |
| Bill Clinton (Dem) President 1993-2001 |
The Catalyst....
Federal investigators (PDF) would later say that "Fannie Mae's management directed
employees to manipulate accounting and earnings to trigger maximum bonuses for senior
executives from 1998 to 2003."
employees to manipulate accounting and earnings to trigger maximum bonuses for senior
executives from 1998 to 2003."
New York Times September 11, 2003
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
The Bush administration today recommended the most significant regulatory overhaul in
the housing finance industry since the savings and loan crisis a decade ago.
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.
Among the groups denouncing the proposal today were the National Association of Home
Builders and Congressional Democrats.
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
The Bush administration today recommended the most significant regulatory overhaul in
the housing finance industry since the savings and loan crisis a decade ago.
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.
Among the groups denouncing the proposal today were the National Association of Home
Builders and Congressional Democrats.
April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a
potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial
markets, affecting Federally insured entities and economic activity."
2002
plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to
2003
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that
"although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has
provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could
immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae,
Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to
recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the
financial activities of our housing-related government sponsored enterprises" and set prudent and
appropriate minimum capital adequacy requirements.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any
"legislation to reform GSE regulation should empower the new regulator with sufficient strength and
credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would
have "broad authority to set both risk-based and minimum capital standards" and "receivership powers
necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The
Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
2004
February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the
GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The
Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient
power and stature to meet their responsibilities, and therefore…should be replaced with a new
strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for
granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs
are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's
House In Order," Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for
reform, saying "We do not have a world-class system of supervision of the housing government sponsored
enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve
demands the best in supervision to ensure the long-term vitality of that system. Therefore, the
Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie
Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial
Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired
since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the
GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains
a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-
measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony
Before The U.S. House Financial Services Committee," 4/13/05)
2007
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and
Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them
reformed, get them streamlined, get them focused, and then I will consider other options." (President
George W. Bush, Press Conference, The White House, 8/9/07)
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying
"These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is
vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens
independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE
reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the
United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing,
The White House, 12/6/07)
2008
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory
structure for the housing GSEs is essential if these entities are to continue to perform their public mission
successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking,
Housing And Urban Affairs, 2/7/08)
March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae
and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to
issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks
To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and
Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to
correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With
Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and
Freddie Mac before the situation deteriorates further.
*
"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress
has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration
that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus
on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime
loans." (President George W. Bush, Radio Address, 5/3/08)
*
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do
that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That
reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The
Secretary Of The Treasury, the White House, 5/19/08)
*
"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae
and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue
tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to
take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie
Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary
Of Housing And Urban Development, Washington, D.C., 6/6/08)
potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial
markets, affecting Federally insured entities and economic activity."
2002
plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to
2003
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that
"although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has
provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could
immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae,
Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to
recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the
financial activities of our housing-related government sponsored enterprises" and set prudent and
appropriate minimum capital adequacy requirements.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any
"legislation to reform GSE regulation should empower the new regulator with sufficient strength and
credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would
have "broad authority to set both risk-based and minimum capital standards" and "receivership powers
necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The
Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
2004
February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the
GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The
Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient
power and stature to meet their responsibilities, and therefore…should be replaced with a new
strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for
granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs
are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's
House In Order," Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for
reform, saying "We do not have a world-class system of supervision of the housing government sponsored
enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve
demands the best in supervision to ensure the long-term vitality of that system. Therefore, the
Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie
Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial
Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired
since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the
GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains
a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-
measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony
Before The U.S. House Financial Services Committee," 4/13/05)
2007
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and
Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them
reformed, get them streamlined, get them focused, and then I will consider other options." (President
George W. Bush, Press Conference, The White House, 8/9/07)
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying
"These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is
vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens
independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE
reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the
United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing,
The White House, 12/6/07)
2008
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory
structure for the housing GSEs is essential if these entities are to continue to perform their public mission
successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking,
Housing And Urban Affairs, 2/7/08)
March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae
and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to
issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks
To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and
Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to
correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With
Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and
Freddie Mac before the situation deteriorates further.
*
"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress
has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration
that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus
on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime
loans." (President George W. Bush, Radio Address, 5/3/08)
*
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do
that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That
reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The
Secretary Of The Treasury, the White House, 5/19/08)
*
"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae
and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue
tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to
take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie
Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary
Of Housing And Urban Development, Washington, D.C., 6/6/08)
| Bush's supposed "no-regulation, no-supervision, anything-goes" policy. |
1977
1995
S.190: A bill to address the regulation of secondary mortgage market enterprises.
The bill that never was, introduced by Chuck Hagel (Repub), John Sununu (Repub) and
Elizabeth Dole (Repub) John McCain (Repub) (cosponsored in 2006), in an attempt to
bring oversight to Fannie/Freddie.
"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." May 25, 2006 John McCain
The bill that never was, introduced by Chuck Hagel (Repub), John Sununu (Repub) and
Elizabeth Dole (Repub) John McCain (Repub) (cosponsored in 2006), in an attempt to
bring oversight to Fannie/Freddie.
"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." May 25, 2006 John McCain
"The Clinton White House used Fannie and Freddie as a patronage job bank. Former
executives and board members read like a who's who of the Clinton-era Democratic Party,
including Franklin Raines, Jamie Gorelick, and Jim Johnson." Investors Business Daily
executives and board members read like a who's who of the Clinton-era Democratic Party,
including Franklin Raines, Jamie Gorelick, and Jim Johnson." Investors Business Daily
Pelosi speaks out about how this is all Bush's fault.
| Don't be shocked by these people's flagrant disregard. What were we to expect from the products of forty years of teachings that demand that there is no such thing as right and wrong, there are no morals, that everything is relative and that no one is allowed to judge or to be judged. These people are simply the byproduct of such unwise teachings. |
For a more in-depth understanding check out some of the articles used in the development
of this section.
of this section.
- Investors Business Daily Congress Lies Low To Avoid Bailout Blame
- Wall Street Journal Blame Fannie Mae and Congress For the Credit Mess
- Bloomberg.com How the Democrats Created the Financial Crisis: Kevin Hassett
- Wall Street Journal Barney's Rubble
- New York Times New Agency Proposed to Oversee Freddie Mac and Fannie Mae
- Investors Business Daily The Real Culprits In This Meltdown
- Washingtonpost.com Study Finds 'Extensive' Fraud at Fannie Mae
Do Bush and Republican leaders share some of the responsibility in this matter? Yes! A lack of
leadership from Bush and Republican Congressional, dare I say "Leaders", failed us by not
standing up for traditional American economic values. Bush should have done a better job of
communicating his warnings directly to the American people. Congressional Republicans
should have held press conferences on the steps of the capital, placing the Dems on the
defensive and alerting the American people of this impending disaster. Yes, Democratic policy
on this issue was clearly an absolute failure, but the Republicans clearly failed to present their
ideas in the proper format, due to a lack of active leadership.
leadership from Bush and Republican Congressional, dare I say "Leaders", failed us by not
standing up for traditional American economic values. Bush should have done a better job of
communicating his warnings directly to the American people. Congressional Republicans
should have held press conferences on the steps of the capital, placing the Dems on the
defensive and alerting the American people of this impending disaster. Yes, Democratic policy
on this issue was clearly an absolute failure, but the Republicans clearly failed to present their
ideas in the proper format, due to a lack of active leadership.
interview. "We were asked — or required — to expand lending, to
interview. "We were asked — or required — to expand lending, to
conserve capital while providing liquidity, to meet housing goals for
the underserved, to serve shareholders and homeowners alike," Mudd
told the paper. "I should have gone to the government and gotten a clear
answer to the question: What do you want — more capital or more
lending?" Mudd said. He told the paper that one option for Fannie Mae
and Freddie Mac would be to privatize them. "This would mean two
things: eliminating their 'government sponsorship' and the requirement
that they invest only in housing, Mudd said. "Fannie and Freddie would
diversify, and operate like other highly regulated financial institutions."
diversify, and operate like other highly regulated financial institutions."
interview. "We were asked — or required — to expand lending, to
conserve capital while providing liquidity, to meet housing goals for
the underserved, to serve shareholders and homeowners alike," Mudd
told the paper. "I should have gone to the government and gotten a clear
answer to the question: What do you want — more capital or more
lending?" Mudd said. He told the paper that one option for Fannie Mae
and Freddie Mac would be to privatize them. "This would mean two
things: eliminating their 'government sponsorship' and the requirement
that they invest only in housing, Mudd said. "Fannie and Freddie would
diversify, and operate like other highly regulated financial institutions."
diversify, and operate like other highly regulated financial institutions."
Clinton Administration Increasing Pressure on Fannie Mae to expand mortgage loans among
low and moderate income people: "...Peter Wallison a resident fellow at the American
Enterprise Institute. 'If they fail, the government will have to step up and bail them out...."
NYTimes 1999
low and moderate income people: "...Peter Wallison a resident fellow at the American
Enterprise Institute. 'If they fail, the government will have to step up and bail them out...."
NYTimes 1999
FLASHBACK 1999
In The Beginning....
| Congressional Report: Federal Government Was Culprit in Housing and Economic Crisis! July 08, 2009 |
| (And yet, in an effort to seize more control of capitalism, the elite of Washington blame Wall Street for the financial meltdown.) |
Let's explore Pelosi's claim of "no responsibility"
| Timeline of Bush/McCain Warning Dems of Financial Meltdown |
| Until the fools that make up Washington get their act together, we should cut them off at the knees and refuse any new government expansion. |
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