Posted on 09/20/2008 6:55:06 PM PDT by Jim Robinson
September 11, 2003
The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.
The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.
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. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
~~ snip ~~
''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
''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,'' Mr. Watt said.
(Excerpt) Read more at query.nytimes.com ...
Don’t you know it’s all Bush’s fault?
Clinton and Greenspan and the Democrats in Congress are innocent bystanders I tell ya! /s
Mocking Barney Frank in Italian - http://www.youtube.com/watch?v=AWhEk9L5nZQ
apparently Barney Franks head has been pushed into a pillow the last few years...
Bring extra for the Frank offices.
Programs created by Democrats, lionized by Democrats, run by Democrats, protected by Democrats, and supportive of Democrats.
We need to make sure that everyone we discuss this with Understands that it is Completely the Fault of the Democrats. This problem/crisis, like all America’s problems, is because of the Democrats. The Republicans Bear ABSOLUTELY NO Responsibility.
‘’We welcome the administration’s approach outlined today,’’ Mr. Raines said. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company’s 18 board members.
Company executives said that the company preferred having the president select some directors. The company is also likely to lobby against the efforts that give regulators too much authority to approve its products.”
Remember folks..this guy was under investigation at the time...or near to it! No wonder he still held out for controlling who could be ‘on his board’ and see his dirty hands!
LOL..nothing like the sight of a trapped weasel trying to outsmart a fox! LOL
Keep the record coming Jim!!
Great job!
“In our day people talk a great deal about inventing a new order. Is it certain that any thinker, regardless of the genius we grant him and the authority we give him, could invent and operate successfully an order superior to the one whose results I have just described?”
From...Frederick Bastiat...”Economic Harmonies”...here...
http://www.econlib.org/library/Bastiat/basHar.html
Thanks to FReeper raygun for the link.
Give ‘em hell W.
I’m looking for an answer to what happened with this proposed legislation. Do you know? The republicans were in control of all three branches at this time. What happened?
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