McCain Proposed Solutions to Fannie/Freddie Years Ago

GovTrack ^ | May 25, 2006 | John McCain

[Always Right]

FEDERAL HOUSING ENTERPRISE REGULATORY REFORM ACT OF 2005 (Bill pdf )

The United States Senate

May 25, 2006

Statement by John McCain

Sen. John McCain [R-AZ]: 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.

The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae's former chief executive officer, OFHEO's report shows that over half of Mr. Raines' compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator's examination of the company's accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO's report solidifies my view that the GSEs need to be reformed without delay.

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 1 90, 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.

I urge my colleagues to support swift action on this GSE reform legislation.

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New Agency Proposed to Oversee Freddie Mac and Fannie Mae - NY Times Sept 11, 2003

McCain - Federal Housing Enterprise Regulatory Reform Act of 2005 (Democrats blocked reform)

Sponsor:  Sen. Charles Hagel [R-NE]

Cosponsors [as of 2007-01-08]

Sen. Elizabeth Dole [R-NC]

Sen. John McCain [R-AZ]

Sen. John Sununu [R-NH]

[Always Right]

Where was Obama on this??? Democrats were busy blocking this. Democrats and Obama did nothing. Now Obama bitches after the Financial Markets collapses. McCain and Bush and the GOP were trying to fix these problems with Fannie and Freddie back in 2003, 2004, 2005, and 2006.

[mylife]

This cant be stressed enough!

[FlingWingFlyer]

Fannie and Freddie is a DemocRAT fiasco. For them to try to blame it on anyone else is criminal.

[Parley Baer]

This is good. Rush alluded to this today. I hope McCain puts this out so the msm will have trouble avoiding it.

[CatOwner]

Good detective work! Bookmarked!

[ari-freedom]

but but Obama said mccain doesn’t understand the economy and doesn’t get it!!!
We know Obama is an expert on the economy because he gave a speech about change and hope.

[mylife]

McCain is feeding Barama rope.

Let him keep yapping.

[Jaguarmike]

This needs to be McCain’s next commercial. The real candidate of reform proposed a solution - and the alleged party of reform blocked it.

[Jaguarmike]

Actually, McCain did bring this up in a network interview yesterday - along with the fact that Obama got a lot of money from Fannie Mae people.

[Doogle]

Where was Obama on this???

...well, two of the great swindlers of Fannie, Raines and Johnson (sp) are two financial advisers of "the 300" advisers Obambi has on his campaign staff

[ncfool]

Wow!

No wonder they gave money to Obama!

John McCain had already called them out.

This is big stuff. McCain today said that Bambi missed the vote on this as he was too busy on the road.

Not present is that like voting here?

[mylife]

They ARE working the reform angle, and it is working.

They will give the knock out during the debates and afterward.

[Carley]

Can we keep this article at the top of the page thru tomorrow too please.

[mylife]

One thing you can say for McCain......He is a Fiscal Hawk

[RoadKingSE]

Fannie and Freddie is a DemocRAT fiasco. For them to try to blame it on anyone else is criminal.

And the disaster has the DNA signature of this dumbass all over it. He and the FannieMae multi-millionaires - Janet Reno's girlfriend Jamie Carpetlick and nObama's economic advisor Frank Raines, to name two - should all be frogmarched down to isolation cages at Gitmo.

[Doe Eyes]

The real candidate of reform proposed a solution - and the alleged party of reform blocked it.

Exactly, lets post the vote on the legislation they blocked.

[bamahead]

BTTT

[ari-freedom]

300 advisers? Obama is