- – - – - The Administration saw this coming, and Barney Frank and Democrats blocked it. Seems we all forgot… – - – - –
Sept 11th, 2003 – NY Times’ Stephen Labaton
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.
- – - – - On page two of the article is the defense of Barney Frank and Melvin L. Watt – - – - -
Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
”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.
http://www.nytimes.com/2003/09/11/business/new-agency-proposed-to-oversee-freddie-mac-and-fannie-mae.html?sec=&spon=&pagewanted=printtarget=
Barney Frank – ”These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis,”
We know what happened, please explain to me why we allow the lying? We seem to have forgotten everything that has happened in the last 8 years.
- Highest Point in Market History – 14,164.53 on October 9th 2007 (we sit in the high 7,000′s today, a little over 50%)
- 2003-2007 – Biggest Bull Market in history
- 1999 – Glass Steagall bill (created FDIC and regulated banking and loaning,) Clinton Admin removes limits on a bank or holding company from owning other financial companies
- 2007 – Freddie Mac and Fannie Mae holds $81 billion cash against loans and loan guarantees of $5.3 trillion, (half of the Mortgages in US
- 2008 (March) Defaults Begin in Mortgages
- 2008 (July) – Bear Stearns a holding company fails on Mortgage Backed Securities / Fannie and Freddie fall 45% and 47%
The best economy in history, follow by the fall of Freddie and Fannie…
Please explain where the above leads to former President Bush? Please don’t post if you do not at least read the article.
Thank you.
READ THE ABOVE FIRST!!!
Bear Stears failed on Mortgage Backed Securities guaranteed by Fannie and Freddie. This was July of 2008, after the best years in market history.
THE HIGHEST POINT IN MARKET HISTORY WAS OCTOBER 9th 2007… THE CLOSE WAS 14,164.53…
These are facts!!! Look them up!!!
It was a combination of these things. President Bush wanted to reform the Mortgage act by regulating either fannie or freddie. The Glass Steagall Bill was holding the Federal Government from doing this. This is about the time that they started calling Bush King Bush. He was a good business person. This did not lead to former President Bush. It is just a way of passing the buck so the other party looks bad.
I realize there are a lot of hard workers in the USA but when Congress raised minimum wage to 7.25 per hour this hurt the small businesses. The same Congress that rushed the 100 hours through are still present and accounted for. They are the law makers, not the president.
For the same reasons righties blame Clinton for 9/11.
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I definately didn’t the whole article, but really, who else is there to be blame?
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Obama’s blind supporters don’t do well w/ facts and figures…
Of course, we don’t discount Bush’s portion of the blame…that’s the difference. We actually acknowledge our "own" party stunk it up.
Obama suing Citibank so they abide by CRA standards:
http://iusbvision.wordpress.com/2008/09/30/obama-sued-citibank-under-cra-to-force-it-to-make-bad-loans/
Housing Dream Team:
http://www.youtube.com/watch?v=hxMInSfanqg&feature=related
Budget numbers fudged by Obama’s attempt to sell:
http://news.yahoo.com/s/ap/fact_check_obama
The real juice:
www. cbo. gov
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Because this crisis was running at full steam long before Obama was elected. Can’t you read the news from more than blind right sources?
I’m only answering your question, not your multi-page details.
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he doesn’t wanna be blamed,
Bush is an easy outlet
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The sum total of Obama’s executive experience is running his campaign. He ran an attack campaign. Therefore, the only way he knows how to lead is by attacking.
If Obama actually took responsibility for things, people would realize he’s just as unprepared and inept as we feared.
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LMAO so he want look as stupid as he has been. He blames everyone BUT himself, just like him being on Jay Leno and those tv shows, he CRAVES attention and he has been blaming things on everyone but him, all he does is bush this and bush that, hes trying to make HIM look bad and HIMSELF look good like hes doing something good for this country, HELLO people, open up your pot head mind and look around at what hes doing!!
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well um lets see because it is his fault i guess
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President Bush tried to set things straight with fannie and freddie. he was shut down. the libs/dems had their grubby lil hands in the till. getting special mortgages etc. he would have been branded racist if he had pushed for it. seems everything in this country goes back to that crap. so glad you brought this up. believe me i did not forget.
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He doesn’t know what he’s doing so he’s blaming the other guy, typical socialist response.
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President Bush was in charge the last 8 years. It happened on his watch. The republicans were in denial there was anything wrong with the economy. Last September McCain said our economy was strong and sound, 2 days later the bottom dropped out. McCains hands are dirty as well he is a senator and not aware of current events in America.
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Bush was bad, but 0bama is worse!
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It was a combination of these things. President Bush wanted to reform the Mortgage act by regulating either fannie or freddie. The Glass Steagall Bill was holding the Federal Government from doing this. This is about the time that they started calling Bush King Bush. He was a good business person. This did not lead to former President Bush. It is just a way of passing the buck so the other party looks bad.
I realize there are a lot of hard workers in the USA but when Congress raised minimum wage to 7.25 per hour this hurt the small businesses. The same Congress that rushed the 100 hours through are still present and accounted for. They are the law makers, not the president.
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