How the Democrats are liars and blocked John McCain's attempts of reform and regulation at Fannie Mae and Freddie Mac
It is amazing to me that the Democrats are lying about their involvement in the failure of Fannie Mae and Freddie Mac. Yes lying! In the following clip, you can see Maxine Waters, Barney Frank, and other democrats attacking the regulator who exposed the "cooking of the books" by Fannie Mae and Freddie Mac leadership.
You have Barney Frank saying that he doesn't see a problem and no need to see any new regulations.
You have Maxine Water saying that the GSE's are working and that they should continue to give 100 percent loans.
Here is a quote from Rep Gregory Meeks (D-New York) during the hearing.
"They've done a tremendous job. There's been nothing that was indicated that's wrong with Fannie Mae. Freddie Mac has come up on its own. And the question that then presents is the competence that your agency has with reference to deciding and regulating these GSEs [government-sponsored enterprises]. And so I wish I could sit here and say that I am not upset with you but I am very upset because you know what you do is give, maybe giving a reason to, as Mr. Gonazlez said, to give someone a heart surgery when they don't need it."
And you have Republicans raising the flag and saying that there needs to be more regulation. Take a look for yourself.
I think the Democrats were caught in the act.
The Democrats did it to John McCain and the American public again. Senator McCain and others introduced legislation to reform the law and bring more regulation to GSE's, like Fannie Mae and Freddie Mac, and what happens? The Democrats block the legislation and it never gets to the floor.
So who helped block the legislation? Barack Obama and the rest of the Democrats in the Senate.
Oh, who is the second largest receiver of donations from PACs and individuals from Fannie Mae and Freddie Mac? Well Barack Obama is. In the four years in the Senate, he has received $126,349. Only Christopher Dodd, the Chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, who has overseen this whole collapse has taken more money, $165,400.
John McCain, who tried to reform Fannie Mae and Freddie Mac has only received $21,550. All from individuals, nothing from the PACs.
Here is what Senator McCain said in 2006 about Fannie Mae and Freddie Mac.
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.
Let's hold Barack Obama and the Democrats accountable for the pain and suffering they have caused this country over the collapse of our housing market, thanks mainly to the mess at Fannie Mae and Freddie Mac.
Oh wait, President Clinton already did that at the end of the video you just watched.