Barny Frank should pay for it

[Guest Fullauto]

Barney Frank

The House Financial Services Committee chairman and Democratic congressman from Massachusetts has long been a proponent of both Fannie and Freddie, assuring the public that their mission to encourage home ownership outweighed the distortive risks they brought to the market, and that the federal government was not, in fact, on the hook for their liabilities. In fact, it seems clear now that Frank had no idea of just how poor a grasp Fannie and Freddie had on their lines of business. As recently as Aug. 25 he told Money magazine, "Fannie and Freddie are better off than the market thinks. ... Part of the problem is rumormongering by short-sellers."

 

What's more, though Frank will blame past political opponents for failing to further regulate the mortgage market by banning products such as subprime loans, the fact of the matter is that the very presence of Fannie and Freddie incentivized brokers to overstate the creditworthiness of borrowers and then pass on that risk to the federal government, all while being cheered for helping more people "realize the American Dream." While we can all agree (I hope) that mortgage markets only function when -- as Frank told Money, banks "do not lend money to people who can't pay it back" -- Frank's ideology in this case blinded him for decades to the realities of the marketplace and the operations at these companies, leading him to stonewall realistic reform efforts that might have helped us avoid the current calamity.

[ImWithStupid]

It gets even better, on the heels of all the bailouts (Bear Sterns, IndyMac, Fannie, Freddy, AIG, soon to be Big 3 Automakers), Barney Frank and the Dem leadership want to make a new Federal Government Agency, whose job it is, to buy bad debt from corporations.

 

Are they Fukkin' Crazy?

 

In Congress, the idea that is gaining traction centers on the creation of a new agency that would buy troubled assets from hobbled companies. The idea was floated on Tuesday by Barney Frank, Democrat of Massachusetts, who heads the House Financial Services Committee. Among those signaling that it merited serious consideration were Senate Majority Leader Harry Reid and the House speaker, Nancy Pelosi.

 

http://www.nytimes.com/2008/09/17/business/17resolution.html?hp

[Guest Fullauto]

It gets even better, on the heels of all the bailouts (Bear Sterns, IndyMac, Fannie, Freddy, AIG, soon to be Big 3 Automakers), Barney Frank and the Dem leadership want to make a new Federal Government Agency, whose job it is, to buy bad debt from corporations.

 

Are they Fukkin' Crazy?

 

 

 

http://www.nytimes.com/2008/09/17/business/17resolution.html?hp

 

Ahhhh... And they claim to be the party of the intellectuals...

 

CHANGE ! ! !

 

has it changed yet?

[ImWithStupid]

John McCain in 2005, on Fannie and Freddy...

 

Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.

 

The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.

 

The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.

 

For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.

 

I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.

 

I urge my colleagues to support swift action on this GSE reform legislation.

 

Hot Air Blog Archive McCain’s attempt to fix Fannie Mae, Freddie Mac in 2005; Update: Obama can’t get AIG right

 

Barack Obama and the Dems on Freddy and Fannie...

 

Top Recipients of Fannie Mae and Freddie Mac

Campaign Contributions, 1989-2008

 

Name

Office

Party/State

Total

 

1. Dodd, Christopher J

S

D-CT

$133,900

 

2. Kerry, John

S

D-MA

$111,000

 

3. Obama, Barack

S

D-IL

$105,849

 

4. Clinton, Hillary

S

D-NY

$75,550

 

http://www.opensecrets.org/news/2008/07/top-senate-recipients-of-fanni.html

 

John McCain only got $20,000 over twenty years, twenty years, from Freddy and Fannie. Obama who not only made his way to #3 in four years with over $100,000 from Freddie and Fannie, but also hired one of the guys who's corrupted economics, sent the company into freefall.

 

Amazingly enough. Barack Obama has Franklin Raines as one of his chief economic advisors.

 

Franklin Raines was a CEO of Fannie Mae and left with millions of dollars in bonuses and overstated earnings while at Fannie to make it look like the company was meeting budget guidelines so he would get his bonuses, ala Enron, but miraculously has never been investigated like Kenneth Lay or any other Enron executive.

 

This is the guy who is telling Obama to blame McCain for the US economy.

 

Where the hell is the media on this one?

 

I can see why Obama is so against McCains economic plans. His friends would go to prison if we implemented them.

 

More seen here...

 

In the aftermath of the U.S. government takeover, attention has focused on three Democrats with close ties to Obama who served as Fannie Mae executives: Franklin Raines, former Clinton administration budget director; James Johnson, former aide to Democratic Vice President Walter Mondale; and Jamie Gorelick, former Clinton administration deputy attorney general.

 

All three Obama-related executives earned millions in compensation from Fannie Mae.

 

Johnson earned $21 million in just his last year serving as Fannie Mae CEO from 1991 to 1998; Raines earned $90 million in his five years as Fannie Mae CEO, from 1999 to 2004; and Gorelick earned an estimated $26 million serving as vice chair of Fannie Mae from 1998 to 2003, according to author David Frum, a fellow at the American Enterprise Institute.

 

http://wnd.com/index.php?fa=PAGE.view&pageId=75586

[RoyalOrleans]

The Democrats, under Clinton, strengthened a government-created monster called the "Community Reinvestment Act." This law was then used by "activists" and "community organizers" (like Obama?) to coerce lending institutions to make these bad loans ... millions of them.

[Guest Fullauto]

The Democrats, under Clinton, strengthened a government-created monster called the "Community Reinvestment Act." This law was then used by "activists" and "community organizers" (like Obama?) to coerce lending institutions to make these bad loans ... millions of them.

 

It is NO SECRET... Jew have controlled the money in this Country for some time now... at least since the Fed was created under Woodrow Wilson.

 

Everything was fine, until we let our idealism trounce our common sense... If the Jews running things say someone is NOT qualified for a loan, TRUST ME, they aren't qualified... These people are not the richest, most powerful people in the world because they dropped out of night school BA courses... THEY KNOW MONEY ! ! WELL ! !

 

While we can ALL agree that every American deserves the American Dream, we let our Pinko friends around the country tell us that we should force the banks to give these people loans even though they don't qualify, and that the benefits of mass home ownership would outweigh any problems we had as a result...

 

WRONG ! !

 

Corporate bailouts are going to cost the US taxpayer about $900 Billion when this is all done... And the people like me, who own a couple homes and have paid them without fault, are going to pay the highest price... Because MY MORTGAGE WILL NOT BE RELIEVED by any bailout programs or Presidential mortgage relief act...

 

Once again, we managed to let bleeding hearts create a system counter to that of the natural symbiosis that is free market economics, that manages to punish the hard working, industrious man, and give thanks to those the wish to leech off us!

 

Isn't Socialism Great! !

[ImWithStupid]

After reading this article in the WSJ...

 

What They Said About Fan and Fred

 

House Financial Services Committee hearing, Sept. 10, 2003:

 

Rep. Barney Frank (D., Mass.): I worry, frankly, that there's a tension here. The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disaster scenarios. . . .

 

Rep. Maxine Waters (D., Calif.), speaking to Housing and Urban Development Secretary Mel Martinez:

 

Secretary Martinez, if it ain't broke, why do you want to fix it? Have the GSEs [government-sponsored enterprises] ever missed their housing goals?

 

 

House Financial Services Committee hearing, Sept. 25, 2003:

 

Rep. Frank: I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing. . . .

 

 

House Financial Services Committee hearing, Sept. 25, 2003:

 

Rep. Gregory Meeks, (D., N.Y.): . . . I am just pissed off at Ofheo [Office of Federal Housing Enterprise Oversight] because if it wasn't for you I don't think that we would be here in the first place.

 

 

Fannie Mayhem: A History

 

A compendium of The Wall Street Journal's recent editorial coverage of Fannie and Freddie.

 

 

And Freddie Mac, who on its own, you know, came out front and indicated it is wrong, and now the problem that we have and that we are faced with is maybe some individuals who wanted to do away with GSEs in the first place, you have given them an excuse to try to have this forum so that we can talk about it and maybe change the direction and the mission of what the GSEs had, which they have done a tremendous job. . .

 

Ofheo Director Armando Falcon Jr.: Congressman, Ofheo did not improperly apply accounting rules; Freddie Mac did. Ofheo did not try to manage earnings improperly; Freddie Mac did. So this isn't about the agency's engagement in improper conduct, it is about Freddie Mac. Let me just correct the record on that. . . . I have been asking for these additional authorities for four years now. I have been asking for additional resources, the independent appropriations assessment powers.

 

 

This is not a matter of the agency engaging in any misconduct. . . .

 

Rep. Waters: However, I have sat through nearly a dozen hearings where, frankly, we were trying to fix something that wasn't broke. Housing is the economic engine of our economy, and in no community does this engine need to work more than in mine. With last week's hurricane and the drain on the economy from the war in Iraq, we should do no harm to these GSEs. We should be enhancing regulation, not making fundamental change.

 

Mr. Chairman, we do not have a crisis at Freddie Mac, and in particular at Fannie Mae, under the outstanding leadership of Mr. Frank Raines. Everything in the 1992 act has worked just fine. In fact, the GSEs have exceeded their housing goals. . . .

 

Rep. Frank: Let me ask [George] Gould and [Franklin] Raines on behalf of Freddie Mac and Fannie Mae, do you feel that over the past years you have been substantially under-regulated?

 

Mr. Raines?

 

Mr. Raines: No, sir.

 

Mr. Frank: Mr. Gould?

 

Mr. Gould: No, sir. . . .

 

Mr. Frank: OK. Then I am not entirely sure why we are here. . . .

 

Rep. Frank: I believe there has been more alarm raised about potential unsafety and unsoundness than, in fact, exists.

 

 

Senate Banking Committee, Oct. 16, 2003:

 

Sen. Charles Schumer (D., N.Y.): And my worry is that we're using the recent safety and soundness concerns, particularly with Freddie, and with a poor regulator, as a straw man to curtail Fannie and Freddie's mission. And I don't think there is any doubt that there are some in the administration who don't believe in Fannie and Freddie altogether, say let the private sector do it. That would be sort of an ideological position.

 

Mr. Raines: But more importantly, banks are in a far more risky business than we are.

 

 

Senate Banking Committee, Feb. 24-25, 2004:

 

Sen. Thomas Carper (D., Del.): What is the wrong that we're trying to right here? What is the potential harm that we're trying to avert?

 

Federal Reserve Chairman Alan Greenspan: Well, I think that that is a very good question, senator.

 

What we're trying to avert is we have in our financial system right now two very large and growing financial institutions which are very effective and are essentially capable of gaining market shares in a very major market to a large extent as a consequence of what is perceived to be a subsidy that prevents the markets from adjusting appropriately, prevents competition and the normal adjustment processes that we see on a day-by-day basis from functioning in a way that creates stability. . . . And so what we have is a structure here in which a very rapidly growing organization, holding assets and financing them by subsidized debt, is growing in a manner which really does not in and of itself contribute to either home ownership or necessarily liquidity or other aspects of the financial markets. . . .

 

Sen. Richard Shelby (R., Ala.): [T]he federal government has [an] ambiguous relationship with the GSEs. And how do we actually get rid of that ambiguity is a complicated, tricky thing. I don't know how we do it.

 

I mean, you've alluded to it a little bit, but how do we define the relationship? It's important, is it not?

 

Mr. Greenspan: Yes. Of all the issues that have been discussed today, I think that is the most difficult one. Because you cannot have, in a rational government or a rational society, two fundamentally different views as to what will happen under a certain event. Because it invites crisis, and it invites instability. . .

 

Sen. Christopher Dodd (D., Conn.): I, just briefly will say, Mr. Chairman, obviously, like most of us here, this is one of the great success stories of all time. And we don't want to lose sight of that and [what] has been pointed out by all of our witnesses here, obviously, the 70% of Americans who own their own homes today, in no small measure, due because of the work that's been done here. And that shouldn't be lost in this debate and discussion. . . .

 

 

Senate Banking Committee, April 6, 2005:

 

Sen. Schumer: I'll lay my marker down right now, Mr. Chairman. I think Fannie and Freddie need some changes, but I don't think they need dramatic restructuring in terms of their mission, in terms of their role in the secondary mortgage market, et cetera. Change some of the accounting and regulatory issues, yes, but don't undo Fannie and Freddie.

 

 

Senate Banking Committee, June 15, 2006:

 

Sen. Robert Bennett (R., Utah): I think we do need a strong regulator. I think we do need a piece of legislation. But I think we do need also to be careful that we don't overreact.

 

I know the press, particularly, keeps saying this is another Enron, which it clearly is not. Fannie Mae has taken its lumps. Fannie Mae is paying a very large fine. Fannie Mae is under a very, very strong microscope, which it needs to be. . . . So let's not do nothing, and at the same time, let's not overreact. . .

 

Sen. Jack Reed (D., R.I.): I think a lot of people are being opportunistic, . . . throwing out the baby with the bathwater, saying, "Let's dramatically restructure Fannie and Freddie," when that is not what's called for as a result of what's happened here. . . .

 

Sen. Chuck Hagel (R., Neb.): Mr. Chairman, what we're dealing with is an astounding failure of management and board responsibility, driven clearly by self interest and greed. And when we reference this issue in the context of -- the best we can say is, "It's no Enron." Now, that's a hell of a high standard.

 

What They Said About Fan and Fred - WSJ.com

[ImWithStupid]

I'm so glad to read this...

 

Pelosi: After bill passage, hearings set to begin

 

WASHINGTON (CNN) -- Following the passage of the economic bailout bill Friday, House Speaker Nancy Pelosi said congressional hearings are planned to find the causes of the crisis and to determine "where we go from here."

 

"We were dealt a bad hand; we made the most of it," Speaker of the House Nancy Pelosi said Friday.

 

She said Congress will shine a new "light of scrutiny and accountability" on the nation's financial system to try to prevent a replay of the problems that plunged the nation into an financial crisis.

 

Reps. Barney Frank, D-Massachusetts, and Henry Waxman, D-California, plan to hold hearings to increase scrutiny of the financial system, Pelosi added.

 

"We want to take our country in a new direction for the middle class," Pelosi said.

 

Frank told reporters Friday that starting in January, Congress will "have a major role."

 

"We have to rewrite housing in America. ... It would be highly irresponsible if we were to stop here," he said. "Now we have to perform more serious reform."

 

Pelosi: After bill passage, hearings set to begin - CNN.com

 

Isn't that kind of like sending the criminals in to get to the "official" bottom of his own crimes?

[Old Salt]

Frank told reporters Friday that starting in January, Congress will "have a major role."

 

"We have to rewrite housing in America. ... It would be highly irresponsible if we were to stop here," he said. "Now we have to perform more serious reform."

And I can imagine what his idea of "reform" is. More problems to follow in a few years?

[wez]

I see the market took a 150 + point dump after the bill was passed after being up about the same amount earlier in the day.. Not a lot of confidence in communist serfdom and ponzi schemes it appears.

[Old Salt]

It was up about 300 before the vote.

[wez]

It was up about 300 before the vote.

 

Good God.. musta been when I took a nap.. even better!

 

 

Why do our politicians hate freedom?

[ImWithStupid]

[ame=http://www.youtube.com/watch?v=RzSj1yNZdY8&feature=related]YouTube - Network - "There is no democracy" [english subtitles][/ame]

[ImWithStupid]

Even though SEC Chairman Cox, owned up to his mistakes, Barney Frank still won't admit he did any wrong. (I think he might be related to TJ) O'Reilly goes off on him...

 

[ame=http://www.youtube.com/watch?v=rz-d6WPTXa8]YouTube - Bill O'Reilly takes on Barney Frank Fannie Freddie Failure[/ame]

[snafu]

Even though SEC Chairman Cox, owned up to his mistakes, Barney Frank still won't admit he did any wrong. (I think he might be related to TJ) O'Reilly goes off on him...

 

YouTube - Bill Reilly takes on Barney Frank Fannie Freddie Failure

 

I thought that was so funny! I have never seen O'Reilly so worked up and I think it was a first! But I think he could've went off on others way before this. In Barney's behalf he did try to stop this legislation. His big "snafu" was when he went and told the public that everything was hunky dory. He didn't want a big pull out on wall street. He should have come clean no matter what and warned the public. He didn't and so he deserved the tung lashing O'Reilly gave him.

 

Kudo's to O'Reilly!!

[ImWithStupid]

I see the market took a 150 + point dump after the bill was passed after being up about the same amount earlier in the day.. Not a lot of confidence in communist serfdom and ponzi schemes it appears.

 

I think O'Reilly went to light on Frank. He's been for years trying to stop regulation of Fan and Fred, long before being named in charge of the commitee as he tries to claim. He is also the 16th biggest recipient of money from Fred and Fan with friends Chris Dodd, John Kerry, Barack Obama and Hillary Clinton as the top four. Barney Frank was eyes deep in this crap, no matter what he wants to claim.

 

http://Off Topic Forum.com/on-topic-bs/26905-barny-frank-should-pay-for-it.html#post69936

 

http://Off Topic Forum.com/on-topic-bs/26905-barny-frank-should-pay-for-it.html#post72053

 

http://Off Topic Forum.com/on-topic-bs/26905-barny-frank-should-pay-for-it.html#post76371

 

This guy should be hiding in a fricking bunker or in prison for what he's done, but has the audacity to claim he had nothing to do with the problem.

 

Barney Frank, Chris Dodd, Chris Cox, Maxine Waters, etc... should come under fire from the public or at the very least resign from their positions in the Federal Government.

[snafu]

I think O'Reilly went to light on Frank. He's been for years trying to stop regulation of Fan and Fred, long before being named in charge of the committee as he tries to claim. He is also the 16th biggest recipient of money from Fred and Fan with friends Chris Dodd, John Kerry, Barack Obama and Hillary Clinton as the top four. Barney Frank was eyes deep in this crap, no matter what he wants to claim.

 

http://Off Topic Forum.com/on-topic-bs/26905-barny-frank-should-pay-for-it.html#post69936

 

http://Off Topic Forum.com/on-topic-bs/26905-barny-frank-should-pay-for-it.html#post72053

 

http://Off Topic Forum.com/on-topic-bs/26905-barny-frank-should-pay-for-it.html#post76371

 

This guy should be hiding in a fricking bunker or in prison for what he's done, but has the audacity to claim he had nothing to do with the problem.

 

Barney Frank, Chris Dodd, Chris Cox, Maxine Waters, etc... should come under fire from the public or at the very least resign from their positions in the Federal Government.

 

Wasn't the regulation the problem? The government was mandating these companies to give high risk loans.

[RoyalOrleans]

Why do our politicians hate freedom?

 

They don't hate freedom at all!

 

They hate your freedom and fear it, god willing, every single election day.

[wez]

They don't hate freedom at all!

 

They hate your freedom and fear it, god willing, every single election day.

 

 

Yeah.. no sh t.. good point.

 

 

Time to smoke em out of their fukking caves..

[RoyalOrleans]

Wasn't the regulation the problem? The government was mandating these companies to give high risk loans.

 

Yes!

 

YES!

 

And who were the enforcers of this regulation?

 

Community Organizers.

[RoyalOrleans]

Yeah.. no sh t.. good pont. F ck em all.

 

Please explain.

[Old Salt]

And don't forget that Barney had a boyfriend who was an executive at Fannie Mae.

[wez]

Please explain.

 

 

 

They love their freedom.. hate mine.. and yours.

[ImWithStupid]

Wasn't the regulation the problem? The government was mandating these companies to give high risk loans.

 

This was a practice that was promoted and hailed in the media as a great accomplishment under Clinton in 1992 while the Dems controlled Congress...

 

Minorities' Home Ownership Booms Under Clinton but Still Lags Whites' - Los Angeles Times

 

I've been showing this trend for weeks. Then there are this info that the Dems and media wouldn't want you to know where members of the Bush administration have called for checks of these systems no less than 17 times since 2001...

 

See next post...

[ImWithStupid]

coninued from last post...

 

 

Just the Facts: The Administration's Unheeded Warnings About the Systemic Risk Posed by the GSEs

 

White House News

 

Setting the Record Straight

In Focus: Economy

 

For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these 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 in August – up 115 percent from the year before.

 

September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.

 

December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)

 

2008

 

January: Bank of America announces it will buy Countrywide.

 

January: Citigroup announces mortgage portfolio lost $18.1 billion in value.

 

February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)

 

March: Bear Stearns announces it will sell itself to JPMorgan Chase.

 

March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)

 

April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)

 

May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.

 

"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)

 

"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)

 

"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)

 

June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)

 

July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.

 

http://www.whitehouse.gov/news/releases/2008/09/20080919-15.html