Lawmaker Accused of Fannie Mae Conflict of Interest
Friday , October 03, 2008
By Bill Sammon
Unqualified home buyers were not the only ones who benefitted from Massachusetts Rep. Barney ("B.J") Frank’s efforts to deregulate Fannie Mae throughout the 1990s.
So did Frank’s partner, Herb Moses, a Fannie Mae executive at the forefront of the agency’s push to relax lending restrictions.
Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank's relationship with Herb Moses, who was Fannie’s assistant director for product initiatives.
Herb Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie.
Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical.
"It’s absolutely a conflict," said Dan Gainor, vice president of the Business & Media Institute. "He (B.J.) was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive, Herb Moses. How is that not germane?
The question is, how is this not so revolting that B.J. Barney is still walking around loose on the streets?
I hope he sues someone and they have a sharp lawyer. They could counter sue and bring this all out in deposition. WOW would that be fun to watch. As Clint Eastwood called them “Fudge Packers”