September 18, 2008

Bush, GOP Warned of Fannie-Freddie Crisis...In 2003

Take a trip in the waaaaaaayback machine to September 11, 2003, when those heroic Democrats in Congress (bullied and oppressed by those eeeevil Rethuglikkkans) were busy trying to avert the impending financial meltdown of Fannie-Freddie trying to figure out the best way to smear/impeach/destroy George Bush.

From the Paper of Record, NYT:

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.

Get all that? CONGRESS was in charge of the oversight authority. The GOP wanted to reform it - the Democrats wanted to preserve the status quo. It's all there - black and white, clear as crystal.

And get this glorious, fabulous little tidbit from Barney Frank (D):

''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.''
Really, Barney? What say you now? Raines? Obama? Hellooooo? Why should we trust your party to do ANYTHING right in this mess you helped create and exacerbate?

These are the same people that Barack Obama wants to advise him and to put in charge of the nation's economy. America can't afford more of these people. What they've done to Fannie-Freddie is just a drop in the bucket of what they'll do to the nation's economy.

By Good Lt. at 01:38 PM | Comments |