Bush proposed a New Agency to Oversee Freddie Mac and Fannie Mae
Even George W. Bush knew that Freddie Mac and Fannie Mae were in big trouble and called for more oversight.
It was the Democrats who didn’t think Fannie Mae and Freddie Mac were in trouble. Barney Frank declared that they were not facing any financial crisis.
New Agency Proposed to Oversee Freddie Mac and Fannie Mae
By STEPHEN LABATON
Published: 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.
[snip]
Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
”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.”
September 18th, 2008 at 4:58 pm
I hate to give Bush credit for anything. But in this case he did try to do the right thing. Only to be opposed by the Democrats. Just exactly when did up become down? Strange world we are living in.
September 18th, 2008 at 5:02 pm
Hi pagan….it’s a weird and frightening time. Up is down and left is right.
September 19th, 2008 at 2:04 am
You got to be kidding me. Once again the Dems desire to play Robin Hood has hurt us all.
September 20th, 2008 at 10:57 am
Very upsetting to see the Democrats trying to foil us again, but I am wondering, didn’t the Republicans control both the House and the Senate? Why did they not just pass it anyway?
October 9th, 2008 at 12:01 pm
Why did not a Republican controlled House and Senate not pass Fannie Mae and Freddie Mac reform when the controlled both branches?
Simple answer. The regulation bill never left committee. There were 19 members of the banking committee. 10 Republicans voted for legislation, and 9 Democrats voted against. As 60 percent vote is needed to bring the bill to the floor of the House, it never left committee.
Remember: ALL DEMOCRATS ON THE COMMITTEE VOTED AGAINST ADDITIONAL REGULATION OF FANNIE MAE AND FREDDIE MAC.
And despite the fact that all Republicans voted for this legislation, it still did not have enough support to leave committee.
Are you angry enough yet? You should be. You are all being royally screwed, and lied to, by a group of people that have power and will not give it up.
Want a clue to who is responsible for not looking out for YOUR interests? Here is a clue. Follow the money. Follow the money.
Tip: who received the most in contributions from Fannie Mae and Freddie Mac?
October 21st, 2008 at 1:55 am
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October 22nd, 2008 at 1:14 pm
That’s a crock Jack. Any bill can be voted out of committee with a simple majority vote. Since the majority party has one extra member, they can send anything they want to the floor without the support of the minority party, providing they can keep their guys in line.
The House majority leadership controls the agenda and what comes to the floor for a vote. The only way to “flush” a bill past the majority leadership and out of committee is with a two-thirds House floor vote. The Republicans let this bill expire, not the House Democrats. The minority cannot kill a bill by itself. Republicans would not send a bank regulatory bill up for a vote without bi-partisan support, but they refused to negotiate with the minority. So the Dems refused to play along.
Had the Republican president and the Republican congressional leadership been serious about reform, we would have had a bill.
Vince Reply:
March 5th, 2009 at 5:14 pm
Mike,
THANK YOU ! I have been looking for the straight word on what happened then, as this is the right’s #1 argument as to why the mess is the left’s fault WHILE ‘THEY’ HAD CONTROL OF ALL BRANCHES OF GOVERNMENT. At first I wondered if it was filibustered in the Senate, but they never SAID that. Only that it was “blocked”.
I, like you, know that a simple majority vote is all it takes to move something out of comittee. THEY HAD THE POWER TO DO IT, AND CHOSE ‘NOT’ TO. Why?? BANKS WERE MAKING TOO MUCH MONEY!
That “dems blocked it” GARBAGE has always stuck in my craw! NOW i know what REALLY happend. THANKS.
March 22nd, 2009 at 1:10 pm
Trying to get my feeble brain to wrap itself around the events I am in the process of putting together a time-line so I can know who to be pizzed at. (http://rightamerican.wordpress.com/gse-meltdown-time-line/) From what I can tell, this mess started in November of 1999 and does not bode well for the Dems. I want Barney Frank and Chris Dodd impeached / to resign… I don’t care which.