AND....Why is Barny Franks and Chuck Schumer not under investigation?
In 2002, shortly before accounting irregularities were exposed at both companies, Frank said, “I do not regard Fannie Mae and Freddie Mac as problems,” The Wall Street Journal reported. After the Freddie Mac accounting scandal in 2003, Frank said, “I do not think we are facing any kind of a crisis.”
But there was a crisis, thanks in large part to Frank, Sen. Charles Schumer and others on the leash of these companies. In Congress, they made sure there was no additional oversight, no additional limit on executive behavior and compensation, and no further restraint on the growth of the companies’ mortgage-backed-securities portfolios, among other changes.
(All of these needed reforms, by the way, have been championed for years by Sen. John Sununu.)
In fact, Frank & Co. made matters worse by pushing Fannie Mae and Freddie Mac to take on greater risk. They wanted more loans to people who might not qualify for traditional bank financing. And, as The Wall Street Journal has pointed out, Frank “pressured regulators to ease up on their capital requirements — which now means taxpayers will have to make up that capital shortfall.”
1 month ago
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1 month ago
Congressman Barney Frank also sat by as mortgage brokers Fannie Mae and Freddie Mac made bad loans even though Frank, as head of the House Banking Committee, certainly knew the score. Instead of demanding responsible business practices from Fannie and Freddie, Frank continued to pound the table to extend even more credit to "low income" families. The mortgage companies were happy to accommodate him, giving big money to folks with little collateral.
1 month ago
Poor leaders like Cox and Frank are just a small part of a corrupt system that is now harming honest Americans. Whoever the next President is must put an end to this.
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