May 17, 2000
Looks like it, doesn’t it?
http://www.nationalmortgagenews.com/premium/archive/?ts=958579203
Fannie Slammed for Lobbying Tactics
Two Republican members of the House Banking Committee have slammed Fannie Mae for its lobbying tactics to stop a bill that would tighten federal oversight of government-sponsored enterprises and take away their lines of credit to the U.S. Treasury. Rep. Donald Manzullo, R-Ill., accused Fannie Mae of conducting a “bogus” grassroots lobbying campaign against the GSE bill sponsored by Rep. Richard Baker, R-La. The Illinois congressman said his office received 2,000 letters from constituents in his district who had been contacted by Fannie Mae and its newly formed Coalition for Homeownership to sign petitions in support of lowering the cost of homeownership and lowering mortgage interest rates. “Most of my constituents are upset that their good name had been used by your company,” Rep. Manzullo told Fannie Mae chairman Franklin D. Raines. “I am upset also. No one knew that a letter was being sent in their behalf on a specific piece of legislation.” Rep. John Sweeney, R-N.Y., also complained that he has been barraged with letters, mail-grams, and e-mails from Fannie Mae and the Coalition for Homeownership. Mr. Raines told the congressmen during a hearing Tuesday before the House Banking subcommittee on GSEs that Fannie Mae has a right to defend itself when the company is under “attack.” A Fannie Mae spokesman said the GSE is building a coalition of organizations and consumers to protect the housing finance system.
(No link)
Fannie, Freddie deny use of threats
The Washington Times - March 9, 2001
Author: BLOOMBERG NEWS
EXCERPTS
Fannie Mae and Freddie Mac threatened to pull business from several financial institutions as punishment for criticizing the government-sponsored mortgage companies, according to a group that lobbies against the agencies.
J.P. Morgan Chase & Co. and American International Group Inc. said they were threatened for their involvement in FM Watch, a group that pushes for more controls on Fannie Mae and Freddie Mac, the Wall Street Journal reported yesterday, citing financial industry executives. Fannie and Freddie own or guarantee more than 40 percent of the $5.5 trillion in U.S. home mortgages.
“Members of the FM Watch board of directors have been subject to attempts of intimidation and threats by both Fannie Mae and Freddie Mac,” said Gerald Friedman, FM Watch’s executive director.
“The message was the same: Stop supporting the activities of FM Watch or be prepared to see your business opportunities and products suffer.”
(snip)
Critics, led by Rep. Richard H. Baker , Louisiana Republican and a member of the House Financial Services Committee, have argued that Fannie Mae is growing too large and that, in the event of a financial slump, taxpayers could be on the hook to bail it out. Some banks are concerned that Fannie Mae will expand into their businesses, such as lending to consumers.
J.P. Morgan Chairman and Chief Executive William Harrison Jr. resigned from FM Watch’s board this week because of pressure from Fannie Mae and Freddie Mac, and the board disbanded, said Beneva Schulte, a spokeswoman for FM Watch.
(snip)
Defending Home Turf From Attack; Fannie Mae Is Facing Assault By House Panel and Business Rivals
By RICHARD W. STEVENSON
Published: April 22, 2000
EXCERPT
At a Banking Committee hearing earlier this month, Mr. Baker said he was concerned about the risks that government-sponsored enterprises would pose to the financial system in an economic downturn, and he compared the companies to Long-Term Capital Management, the giant hedge fund that rocked world markets when it nearly failed in 1998.
Even as he stressed that Fannie Mae and Freddie Mac were healthy and profitable, Mr. Baker said that to ignore ‘’the potential impact of a misstep’’ by one or both of the companies ‘’is to flirt with a potential disaster.’’
Should the government-sponsored housing companies continue to grow unchecked in size and influence, Mr. Baker told the hearing, the government might ultimately find itself on the hook for a bailout that would be financed out of ‘’your constituent’s wallet.’’
Fannie Mae quickly responded that the comparison to a high-risk hedge fund was ‘’unfounded,’’ and that the company exceeds all regulatory standards for financial strength.
Invoking the defense that his company has used successfully for years, David Jeffers, a spokesman for Fannie Mae, said that a proposal by Mr. Baker to tighten regulation of Fannie Mae and Freddie Mac ‘’is going nowhere because it is antihousing.’’