Franks Stopped Bush in 03 to regulate Fannie Mae 17 times!
- 2008/11/22 22:03:58
- Read all 27 opinions
From NY Times - 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.
”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.
So, instead, they weakened EVERYONE’s buying power. I guess that’s what makes it fair. I’m sure glad they’re looking out for all of us.
- Look what they found on the Arizona border
- Too Busy for a Friend? In memory of a fallen soldier
- Another Solution to Save Gas
- We Are 3 States Away From A Constitutional Convention Towards Healthcare Reform
- I'm a legal American citizen and I must show my ID when:
- View more slideshows »
Russian president Vladimir Putin announced his divorce publicly on Thursday, surprising the Russian public despite years of hearsay.
British newspaper The Guardian claims the U.S. National Security Administration has been collecting large amounts of phone calls from Verizon customers.
Ever since President Obama's re-election back in November, the media hasn't stopped reporting about the ruffled course of the Republican party. So who's the future face of the GOP? Find out how the public voted.
New Jersey Governor Chris Christie has been at the center of media coverage for a while now. But more recently, the buzz has been about his proclaimed political party -- and whether or not he should change it.