Fannie Mae and Freddie Mac (Is the Banking Queen - Barney Frank - in WAY over his head?)

3/06/09

[Libloather]

Fannie Mae and Freddie Mac

In September 2003, Frank, then the ranking Democrat on the Republican-led Financial Services Committee, opposed a Bush administration proposal for transferring oversight of Fannie Mae and Freddie Mac from Congress and the Department of Housing and Urban Development to a new agency that would be created within the Treasury Department. The proposal reflected the administration's belief that Congress "neither has the tools, nor the stature" for adequate oversight. Frank stated, "These two entities...are not facing any kind of financial crisis.... The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

Conservative groups have criticized Frank for campaign contributions from Fannie Mae and Freddie Mac ($42,350 between 1989 and 2008). They further claim the donations influenced his support of their lending programs, and they have partially blamed Frank for not playing a stronger role in reforming Fannie Mae and Freddie Mac in the years leading up to the Economic crisis of 2008. In addition, Frank's former partner, Herb Moses, was an executive at Fannie from 1991 to 1998, where Moses helped develop many of Fannie’s affordable housing and home improvement lending programs. In 1991, Frank pushed for reduced restrictions on two- and three-family home mortgages. Frank and Moses' relationship ended around the same time Moses left the company; Frank's support of Fannie and Freddie predated and continued past that relationship.

Frank has responded that he "opposed right-wing efforts to put Fannie Mae and Freddie Mac out of business, while simultaneously supporting strong regulation" and "voted against the [2005 reform] bill in protest of those restrictions, while making it clear that I was for the reforms it otherwise contained." Lawrence B. Lindsey, former chief economic adviser to then-President Bush, states that Frank "is the only politician I know who has argued that we needed tighter rules that intentionally produce fewer homeowners and more renters."

[bray]

Looks like Fannie Fag’s Buttboy was cooking the books that caused the Banking Collapse. You can tell that there is little or no Republican guilt by the lack of investigations by congress of ABDNC.

Pray for America