Are Obama and Democrats guilty in financial meltdown?
D W asked the question:
September 11, 2003
New York Times
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.
The plan is an acknowledgment by the administration that oversight of Fannie Mae and Freddie Mac — which together have issued more than $1.5 trillion in outstanding debt — is broken. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates.
”There is a general recognition that the supervisory system for housing-related government-sponsored enterprises neither has the tools, nor the stature, to deal effectively with the current size, complexity and importance of these enterprises,” Treasury Secretary John W. Snow told the House Financial Services Committee in an appearance with Housing Secretary Mel Martinez, who also backed the plan.
Mr. Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies.
http://query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63&sec=&spon=&pagewanted=print
http://beltwayblips.com/video/timeline_shows_bush_mccain_warning_dems_of_financial/
http://s3.amazonaws.com/propublica/assets/docs/gse_reform_060505.pdf
http://www.youtube.com/watch?v=cMnSp4qEXNM
http://www.whitehouse.gov/news/releases/2008/09/20080919-15.html
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Filed Under Elections |
Tagged With Finance Industry, Mel Martinez, Rising Interest Rates
Comments
10 Responses to “Are Obama and Democrats guilty in financial meltdown?”
Without bothering with the article you posted:
Democrats: Senator Christopher Dodd - yes. Rep. Barney Frank - yes.
All the Democrats who pounded on the regulators when they testified in committee - yes.
Barack Obama? No.
The more you try to pile on his plate that he’s NOT responsible for - the harder it will be to make REAL wrongdoing stick if and when it happens.
For John V. Thanks for posting the video of the regulators being slammed. I couldn’t find it for my post.
No they are not. Keep up with current events. Here’s today’s latest headline on the issue:
AP IMPACT: US diluted loan rules before crash
WASHINGTON – The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents
George Bush was president for the last eight years, right? But of course, he is not responsible for anything. Considering he has no clue of anything, I empathize with this argument.
Yes. It started in 1938 with Fannie Mae.
More recently:
Their is enough blame to go around, I am more interested in what we do from here.
Within a year of his swearing in, Bush had undone Clinton’s in-the-black budget, and recreated the deficit of the Reagan/ Bush Sr. years.
It’s entirely the Republican party’s fault.
The republicans controlled congress the last 6 years of Clinton’s office and the first 6 years of Bush’s office and enjoyed a sitting republican president to boot. That’s a total of 12 years of control.
Now let do the math. Who’s fault is it?
Nope, Sorry!!!
i’m sure the obama compliant media will take up that ball and run
with it!
SHOCKING VIDEO OF DEMOCRATS COVERING UP
Watch this video of how at this hearing with Frank, Dodd, Waters and the rest of the Democrats were chastising the F&F regulator, saying everything was just dandy, didnt need any regulation., which led to the house of cards failing, “Free loans for everyone whether you can pay for it or not”