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The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Watch Barney Frank bully a college student and lie through his teeth about his role in the mortgage crisis.

Posted by iusbvision on April 7, 2009

Our friend Michelle Malkin has a post today about a college student who challenges Frank on his role in the mortgage crisis. The student was not as well prepared as he should have been, but it is interesting to watch Frank become unhinged and launch into a litany of lies about his history on the matter.

In the video link by Malkin, Frank says that it was the Bush Administration that was resisting re-regulation and policing of the mortgage industry. As we have proved with evidence, this was just not the case.

Go see Michelle Malkin’s post HERE and be sure to watch the video.

Also, Malkin quotes Judicial Watch who just received new documents from the Fannie Mae and Freddie Mac regulator that amount to yet another mountain of evidence of barney Frank’s corruption and guilt in this matter:

…the FOIA records that Judicial Watch obtained and released yesterday, which I linked yesterday. A reminder for Barney Frank (and ammunition for the next time a brave student wants to take him on again):

Judicial Watch obtained the documents from the Federal Housing Finance Agency (FHFA) in response to a Freedom of Information Act (FOIA) request dated December 4, 2008. Judicial Watch requested records related to members of Congress activity regarding the policy of Fannie Mae and Freddie Mac to increase lending to individuals with poor credit risk, as well as correspondence and records about contacts between FHFA and Fannie and Freddie. Among the important documents:

FHFA letter, dated March 26, 2007, from the director of the Office of Housing Enterprise Oversight (OHFEO), James B. Lockhart, to U.S. Senators Elizabeth Dole, Chuck Hagel, Mel Martinez and John Sununu: “This is a very serious issue. Freddie Mac’s inadequate systems and controls make it a significant supervisory concern. Furthermore, its lack of timely public disclosures deny market participants the essential financial information made available by all other publicly traded companies so that investors may make informed judgments.” The letter also mentions, “…Fannie Mae still has not filed financial statements for 2005 and 2006 and thus, they are not timely filers either.”

FHFA letter, dated December 3, 2004, to Congressman Barney Frank: “On November 15, 2004 Fannie Mae filed a Form 12b-25 with the Securities and Exchange Commission (SEC). Fannie Mae indicated that its external auditors could not complete their reviews of its financial statements and noted the possibility of up to a $9 billion loss dating back to 2001. As a result, OHFEO has determined it will not provide a monthly capital classification at this time.”

Letter dated June 16, 2006, from OHFEO Director Lockhart to Senator Chuck Hagel: “…In January 1999, Chairman and CEO Franklin Raines approved a recommendation made by the Chief Financial Officer (CFO) (Tom Howard) and the Controller (Leanne Spencer) to defer recognition of $200 million in amortization expense. This deferral, along with other accounting decisions made at that time relating to provisions for loan losses and the recognition of low-income housing tax credits, allowed management to meet the EPS threshold for maximum bonuses.”
Overall, these documents show that Congress was made aware of the massive problems at Fannie Mae and Freddie Mac over the last six years. Yet liberals, led by Congressman Barney Frank, repeatedly blocked attempts to rein in Fannie Mae and Freddie Mac.

For example, during a hearing on September 10, 2003, before the House Committee on Financial Services considering a Bush administration proposal to further regulate Fannie and Freddie, Rep. Frank stated: “I want to begin by saying that I am glad to consider the legislation, but I do not think we are facing any kind of a crisis. That is, in my view, the two government sponsored enterprises we are talking about here, Fannie Mae and Freddie Mac, are not in a crisis. We have recently had an accounting problem with Freddie Mac that has led to people being dismissed, as appears to be appropriate. I do not think at this point there is a problem with a threat to the Treasury.

Senators Hagel, Dole and Sununu (all Republicans) are mentioned in OFHEO’s correspondence because those three Senators worked the hardest, year after year to try and fix this problem since 2001 and Democrats like Barney Frank and Chris Dodd were successful at getting such reforms blocked because Fannie Mae and Freddie Mac were spending hundreds of millions in partisan activities and lobbying of which Democrats were the greatest beneficiaries.

2 Responses to “Watch Barney Frank bully a college student and lie through his teeth about his role in the mortgage crisis.”

  1. Dave Flow said

    I call FOWL! watch the video, when the timer reaches 4:50 till 5:15 Franks: “I don’t see anything in this report that raises safety and soundness problems.”

  2. Might seem like old news but it needs to be brought up over and over and over each time the Democrats try to blame Republicans for anything.

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