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McCain Wrote Letter in May 2006 Signed by 19 Senators to Fix Mortgage Industry

Posted by iusbvision on October 11, 2008

 

Hat Tip Human Events Magazine.

You see the four Senators who were the sponsors Hagel, Sunnunu, Dole and McCain and the other Senators on page 2.

To learn the ins and outs of what has become the largest financial scandal in world history please read the links below.

https://iusbvision.wordpress.com/2008/10/01/clinton-says-that-obama-is-wrong-about-economic-crisis/

https://iusbvision.wordpress.com/2008/09/21/in-plain-english-how-did-the-biggest-financial-scandal-in-history-happen/

https://iusbvision.wordpress.com/2008/09/28/the-video-that-says-it-all-democrats-on-banking-committee-lying-about-status-of-fannie-mae-and-freddie-mac-saying-they-are-fine-and-dont-need-reform/

https://iusbvision.wordpress.com/2008/09/21/bush-administration-warned-congress-over-20-times-reforms-were-needed/

8 Responses to “McCain Wrote Letter in May 2006 Signed by 19 Senators to Fix Mortgage Industry”

  1. Ed Darrell said

    That’s well and good, but it wouldn’t have stopped the current mortgage crisis. Fannie Mae and Freddie Mac don’t originate loans. Nor did they invent the sub-prime market devices used by the banks to get into trouble.

    Would it have been possible for a regulator to get these two agencies out of the backing of sub-prime mortgages? Regulation laws were passed — but the regulator in the Bush administration specifically approved the secondary market purchase of sub-prime loans by both agencies.

    Why wouldn’t an agency jump at the call of John McCain to rein in such stuff? Remember, this is the John McCain who claimed a few days ago to be Mr. Deregulation.

    Credence and credibility must be earned. On this issue, McCain didn’t have it then, doesn’t have it now.

    [Ed,

    Are you absolutely clueless?? The regulator is the OFHEO – they dont report to the administration they report to the finance committees in Congress. Namely Barney Frank and Chris Dodd. Deregulation wasnt the problem and Clinton said so. Yes Fannie Mae and Freddie Mac were the catalyst for all of this.

    You need to stop, read the links below very carefully before you post here again, because you clearly have no idea what you are talking about.

    Clinton:

    In BusinessWeek.com, Maria Bartiromo reports that she asked the former President last week whether he regretted signing that legislation. Mr. Clinton’s reply: “No, because it wasn’t a complete deregulation at all. We still have heavy regulations and insurance on bank deposits, requirements on banks for capital and for disclosure. I thought at the time that it might lead to more stable investments and a reduced pressure on Wall Street to produce quarterly profits that were always bigger than the previous quarter.

    “But I have really thought about this a lot. I don’t see that signing that bill had anything to do with the current crisis. Indeed, one of the things that has helped stabilize the current situation as much as it has is the purchase of Merrill Lynch by Bank of America, which was much smoother than it would have been if I hadn’t signed that bill.”

    Read these links.

    https://iusbvision.wordpress.com/2008/10/01/clinton-says-that-obama-is-wrong-about-economic-crisis/

    https://iusbvision.wordpress.com/2008/09/21/in-plain-english-how-did-the-biggest-financial-scandal-in-history-happen/

    https://iusbvision.wordpress.com/2008/09/28/the-video-that-says-it-all-democrats-on-banking-committee-lying-about-status-of-fannie-mae-and-freddie-mac-saying-they-are-fine-and-dont-need-reform/

    https://iusbvision.wordpress.com/2008/09/21/bush-administration-warned-congress-over-20-times-reforms-were-needed/

    Factcheck.org

    FACTCHECK.ORG: The truth is, however, the Gramm-Leach-Bliley Act had little if anything to do with the current crisis. In fact, economists on both sides of the political spectrum have suggested that the act has probably made the crisis less severe than it might otherwise have been.

    Ed – you have posted here before and this information has been posted a long time now. The evidence is in and it is crystal clear. Why are you so foolish enough to think that you can post these lies and get away with it?? – Editor]

  2. Ed Darrell said

    My point was that Freddie Mac and Fannie Mae did not invent sub-prime mortgages, and in fact have no direct, nor even straightline role in regulating them. You’ve not responded to that in any way.

    Since these agencies had no role in creating, and no substantial power to limit sub-prime mortgages, how anyone can blame the agencies for doing their jobs (buying bundles of mortgages to allow mortgage writers to write more mortgages) is rather beyond me.

    I’ve read your earlier posts. I merely point out the facts. If you can cite the law which denies the facts, cite it. But Bill Clinton’s opinion about the overall bill, news reports, and your own posts, do not change the laws or the Constitution.

    Where in the world did you ever get the idea that Congress supervises an executive branch agency — especially an independent agency? Goverment 101: The president is head of the executive branch; our Constitution sets up separation of powers between the branches, as well as checks and balances. Congress doesn’t regulate. See the Chadha decision, if you’re wondering about the Constitutional basis.

    [Ed – Stop lying and saying that you read the links. If you had you would know all that I am about to tell you.

    Aftr you go and read the links provided, you should start reading at OFHEO.gov. OFHEO reports to Congress for enforcement in its mortgage finance side, not the administration. It is a fact. Deal with it. All you have to do is go read on their site THEY will tell you.

    OFHEO has an affordable housing side that reports to HUD, but again OFHEO has little enforcemnet power, it reports.

    OFHEO is not paid for by the executive branch, Fannie Mae and Freddie Mac pay for them.

    Your point about separation of powers would be true for a real agency, but Fannie Mae, Freddie Mac and OFHEO are a part of the GSE system and are not real constitutional agencies as authorized by Congress under Article I Section VIII.

    Most of the mortgage industry debt is managed by GSE’s which are unique animals in government being part government and part private. That is why GSE’s do not follow the standard separation of powers as they were set up. GSE’s are almost certainly unconstitutional to begin with, so it is no surprise that their monitoring and enforcement are not typical as well.

    The government leaned on banks to make the bad loans, Fannie Mae and Freddie Mac made it feasible buy buying them and taking much of the risk off of the banks and putting it on the taxpayer, but then Fannie and Freddie started selling mortgage based securities based on these bad loans, other financial institutions bought them and as a result they are going bust too. All the evidence with original sources has been posted in our other coverage. If you are just going to come here and spam us your posting priviledges here will be suspended, because it seems to me that you are trying to use us to drive some traffic to your site. You made several posts in a row saying almost the exact same things so I deleted all but one of them. Don’t spam us. – Editor]

  3. iusbvision said

    Ed,

    As we have indicated before, OFHEO has two missions.

    An affordable housing mission that reports to HUD, but has no real enforcement power and a mortgage finance mission that has almost no enforcement power and reports to the finance committee’s in Congress.

    OFHEO is paid for by Fannie Mae and Freddie Mac and is not paid for by the tax payer.

    Your point about separation of powers would be true for a real constitutional agency, but Fannie Mae, Freddie Mac and OFHEO are a part of the GSE system and are not real constitutional agencies as authorized by Congress under Article I Section VIII.

    Most of the mortgage industry debt is managed by GSE’s which are unique animals in government being part government and part private. That is why GSE’s do not follow the standard separation of powers as they were set up. GSE’s are almost certainly unconstitutional to begin with, so it is no surprise that their monitoring and enforcement are not typical as well.

    OFHEO has begged Congress year after year to have itself replaced by REAL banking regulators with REAL enforcement power either under the Federal Reserve or the Treasury Department.

    The OFHEO has testified to this and we have linked to the testimony. Alan Greenspan has testified to this and we have linked to that testimony.

    OFHEO has begged Congress year after year to be replaced by an agency with REAL banking regulator powers and authority. Barney Frank and his crew tried to stop it in the House year after year, but in 2005 Republicans had enough votes to push it through that year. Democrats in the Senate unanimously voted no and blocked in there year after year because Republicans did not have 60 votes to beat the filibuster.

    Here is one example of many of OFHEO asking to be replaced by REAL banking regulators.

    Legislation
    OFHEO has continued to strongly support enactment of legislative reform to strengthen GSE oversight. During the past year, the agency worked with the Bush Administration, Congress and interested parties on legislation that will provide bank regulator-like powers to a new GSE regulator overseeing Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The House of Representatives passed, on a bipartisan basis, GSE regulatory reform legislation (H.R. 1427) in May 2007 [Barney Frank and Finance Committee Democrat members in both houses of Congress opposed it year after year till 2007 – Editor]. It is a balanced bill that will strengthen the nation’s housing finance system by enhancing oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks. It is my hope that the Senate will complete its work on this important legislation soon.
    http://www.ofheo.gov/media/pdf/OFHEOPARNovember2007508.pdf

    Democrats blocked that legislation year after year and we posted the testimony and the youtube VIDEO of members of the Finance Committee’s in Congress showing Democrats like Chris Dodd and Barney Frank and Maxine Waters all saying that Fannie Mae and Freddie Mac and the mortgage industry was in just dandy financial shape.

    Again if you had just bothered to read the links we posted and gave you in the comments you would know all of this. Next time read all the information and watch the video’s FIRST; THEN open the mouth as it were and start posting. The order of those things IS important.

    Ed – now that you have had a chance to relax your posting priviledges are restored. Seven posts in a few minutes time was excessive. – Editor.

  4. Ed Darrell said

    So much error, so little time.

    [Like we said Ed, if you wish to post here, no spam, no repetitive posts and please read the evidence given to you before you comment on it. Even though you lied about the contents of our material on your web site, we have given you a second chance, don’t blow it. – Editor]

  5. iusbvision said

    New York Times Excerpt:

    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.

    ”The current regulator does not have the tools, or the mandate, to adequately regulate these enterprises,” Mr. Oxley said at the hearing. ”We have seen in recent months that mismanagement and questionable accounting practices went largely unnoticed by the Office of Federal Housing Enterprise Oversight,” the independent agency that now regulates the companies.

    ”These irregularities, which have been going on for several years, should have been detected earlier by the regulator,” he added.

    ”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.

  6. iusbvision said

    By the way Ed, the Wall Street Journal, Bloomberg News, Fox News, CNN, the American Enterprise Institute, MSNBC’s Jim Cramer, Larry Kudlow, Investors Business Daily and Human Events Magazine and I am sure I am missing many others have all given a similar analysis on how this all happened as we have.

    The difference is that we beat lots of others to it.
    https://iusbvision.wordpress.com/2008/09/21/in-plain-english-how-did-the-biggest-financial-scandal-in-history-happen/

  7. […] attempt to fix Fannie Mae, Freddie Mac in 2005; Update: Obama can’t get AIG right McCain Wrote Letter in May 2006 Signed by 19 Senators to Fix Mortgage Industry The IUSB Vision Weblo… __________________ I love Hockey Moms! You know the difference between a Hockey Mom and a Pit […]

  8. Ed Darrell said

    By the way Ed, the Wall Street Journal, Bloomberg News, Fox News, CNN, the American Enterprise Institute, MSNBC’s Jim Cramer, Larry Kudlow, Investors Business Daily and Human Events Magazine and I am sure I am missing many others have all given a similar analysis on how this all happened as we have.

    Can you point me to those stories? I’m not finding them.

    [All but the Jim Cramer and Larry Kudlow analysis are linked on this site in our coverage, I saw Cramer and Kudlow speak on television about it. You will have to READ what we wrote and examine the links to find them. – Editor]

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