Tuesday, September 16, 2008

Bush Administration Recommended Overhaul of Freddie and Fannie Back in 2003 but Demos blocked it


New York Times

September 11, 2003 -New Agency Proposed to Oversee Freddie Mac and Fannie Mae By 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.

‘’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.

And McCain asked for it in 2005, so how do these despicable hypocrites get away with blaming the republicans?

Who runs freddie mac and fannnie mae? Clinton appointees. Mark Levin stated that Obama was # 2 or # 3 in receiveing campaing money from them. McCain received NOTHING from them directly. Jamie Gorelick of Bill Clinton and 9-11 Commission Fame, made MILLIONS working for them, according to Mark Levin and Sean Hannity.

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