Why did the Democrats in congress undermine and discourage oversite of Frannie and Freddie? ?

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The Dems blocked Bush’s proposed oversight of Frannie and Freddie in 2003.

Bush suggested this in 2003.
Under the plan, disclosed at a Congressional hearing in 2003, a new agency would have been 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.

But the Democrats said:
”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 in 2003.

http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63&sec=&spon=&pagewanted=print

The Dems killed McCain’s creation of an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac).
http://www.govtrack.us/congress/bill.xpd?bill=s109-190
http://www.govtrack.us/congress/bill.xpd?bill=s109-190&tab=summary

http://beltwaysnark.com/2008/09/16/john-mccain-supported-a-proposal-for-an-agency-to-oversee-fannie-and-freddiein-2005/

14 Comments
  1. Reply
    gitrdoneobama
    April 29, 2011 at 10:37 pm

    Umm hello, the Republicans were in power in 2003, they controlled the congress, not the democrats.

    Get a clue.

    And by the way…Barney Frank is not the Democrats. He is A Democrat.

    Get a 2nd clue.

  2. Reply
    karl_popper_fan
    April 29, 2011 at 11:31 pm

    stop this swift boat smear! The democrats are pure as the driven snow, and Bush is to blame for all the world’s problems! He’s the reason the Detroit Lions are 0-4, a hurricane hit Galveston, and the Cubs were swept!

    EDIT: So the minority can’t block or pass legislation? Then why did the dems accuse the GOP MINORITY in the house from blocking the original bail out?

  3. Reply
    mr.obviouslee
    April 30, 2011 at 12:21 am

    Politics politics politics.

    They squashed several attempts by republicans to reign in both.

    Even these kids get it:
    http://www.youtube.com/watch?v=Ncqqr1BFV08

  4. Reply
    DaisyCake
    April 30, 2011 at 1:07 am

    Because it was Dem appointees who stood to gain millions. Barney Frank’s lover made millions as did a bunch of Clinton’s buddies.

  5. Reply
    Simply Jennifer
    April 30, 2011 at 1:35 am

    Probably because they knew Bush would get blamed for whatever went wrong — thus paving an easier road for them to the White House.
    .

  6. Reply
    Katerina
    April 30, 2011 at 1:38 am

    Exactly…thank you…

  7. Reply
    Walt
    April 30, 2011 at 1:42 am

    Because they are political prostitutes getting kick backs, campaign funds, and other money for this mess, that is why the kept their mouth shut, because they were paid off and their mouths were too full returning the favors to be able to talk.

  8. Reply
    wooper
    April 30, 2011 at 2:10 am

    The Republicans controlled both houses of Congress in 2003 and the White House. How are you blaming this on the Dems?

  9. Reply
    lonnie h
    April 30, 2011 at 2:56 am

    Because those loans go to lowincome people who vote democrat. Have you ever seen a low income republican. Have you ever seen a republican on welfare? If your a burden on society, your a democrat pure and simple.

  10. Reply
    Bob Joke
    April 30, 2011 at 3:37 am

    Do you mean crooked democrats like Barney Frank, Christopher Dodd and Chuck Schumer who should be in prison?

  11. Reply
    Friend b
    April 30, 2011 at 4:04 am

    You can’t bring up facts, Teleprama Obama supporters, don’t like facts, they see facts as attacks, and you can’t get away with attacking their living god. Don’t be surprised if this question gets deleted. Let the children sing all hail Obama, all hail Obama!!! Didn’t children sing about Hitler, and didn’t the children sing about how great Chairman Mao was, both, and now all three were forced to where uniforms,

  12. Reply
    xiphos
    April 30, 2011 at 4:59 am

    Wooper/Gitrdone:
    The Reform for Fannie, Bill S.190 was introduced by the Republicans….in fact, McCain co-sponsored.

    The Bill must go thru Committee and gain 60% support. The committee consisted of 20 members at the time. 11 were Republicans, 9 were Democrats. To get 60% support the Republicans needed ONE Democrat to support it. Not one Democrat budged so the bill died.

    “The American people will never knowingly adopt socialism. But, under the name of ‘liberalism,’ they will adopt every fragment of the socialist program, until one day America will be a socialist nation, without knowing how it happened.”
    – Norman Thomas, U.S. Socialist Party presidential candidate- 1940, 1944 and 1948

  13. Reply
    francesmomto3
    April 30, 2011 at 5:42 am

    Warnings went unheeded, as the President’s repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
    ** 2001 April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
    ** 2002 May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
    ** 2003 January: Freddie Mac announces it has to restate financial results for the previous three years. February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that “although investors perceive an implicit Federal guarantee of [GSE] obligations,” “the government has provided no explicit legal backing for them.” As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. (“Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO,” OFHEO Report, 2/4/03) September: Fannie Mae discloses SEC investigation and acknowledges OFHEO’s review found earnings manipulations. September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements. October: Fannie Mae discloses $ 1.2 billion accounting error. November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any “legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk.” To reduce the potential for systemic instability, the regulator would have “broad authority to set both risk-based and minimum capital standards” and “receivership powers necessary to wind down the affairs of a troubled GSE.” (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
    ** 2004 February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83) February: CEA Chairman Mankiw cautions Congress to “not take [the financial market’s] strength for granted.” Again, the call from the Administration was to reduce this risk by “ensuring that the housing GSEs are overseen by an effective regulator.” (N. Gregory Mankiw, Op-Ed, “Keeping Fannie And Freddie’s House In Order,” Financial Times, 2/24/04) June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying “We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System.” (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
    ** 2005 April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05)
    ** 2007 July: Two Bear Stearns hedge funds invested in mortgage securities collapse. August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07) September: RealtyTrac announces foreclosure filings up 243,000 i

  14. Reply
    sammy
    April 30, 2011 at 6:41 am

    $ $ $ $ $ $ $ $ $ $ $ ……cha-ching!! it was all about the MONEY! Dems had a candy store of money and they did not want anyone getting in the way!!

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