Hey, Dumbo:
Federal Housing Enterprise Regulatory Reform Act of 2005
"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." - John McCain May 25, 2006
Democrats squashed this bill.
The dems squashed a bill in repug controlled houses?
CAN YOU EXPLAIN WHAT DEMS SAID?
Rep. Maxine Waters (D-Calif.): “Through nearly a dozen hearings, where frankly we are trying to
fix something that wasn’t broke, Mr. Chairman, we do not have a crisis at Freddie Mac and in
particular at Fannie Mae under the outstanding leadership of Mr. Frank Raines.”
Rep. Maxine Waters (D., Calif.): “Mr. Chairman, we do not have a crisis at Freddie Mac, and in
particular at Fannie Mae, under the outstanding leadership of Mr. Frank Raines. Everything in
the 1992 act has worked just fine. In fact, the GSEs have exceeded their housing goals.”
Rep. Gregory Meeks (D-NY): In a hearing several years ago about a report on the safety and
soundness of Fannie Mae and Freddie Mac from their regulator, Armando Falcon, Federal Housing
Enterprise Oversight Director, Falcon came under fire. Meeks said; “The GSEs have done a
tremendous job. There has been nothing that was indicated that’s wrong with Fannie Mae, Freddie
Mac has come up on its own,” adding the regulator was trying to give the two a “heart surgeon
[sic] when they really don’t need it.”
Rep. Barney Frank (D., Mass.): “The more people, in my judgment, exaggerate a threat of safety
and soundness, the more people conjure up the possibility of serious financial losses to the
Treasury, which I do not see. I think we see entities [Fannie Mae and Freddie Mac] that are
fundamentally sound financially and withstand some of the disaster scenarios.”
Rep. Barney Frank (D-Mass.): In the same hearing several years ago about a report on the safety
and soundness of Fannie Mae and Freddie Mac from their regulator, Falcon, Frank attacked Falcon:
“I don’t see anything in your report that raises safety and soundness problems.”
Sen. Christopher Dodd (D., Conn.): “I, just briefly will say, Mr. Chairman, obviously, like most
of us here, this is one of the great success stories of all time.”
Sen. Charles Schumer (D., N.Y.): “And my worry is that we’re using the recent safety and
soundness concerns, particularly with Freddie, and with a poor regulator, as a straw man to
curtail Fannie and Freddie’s mission.”
Franklin Raines, former head of Fannie Mae: “These assets are so riskless that their capital for holding them should be under 2%.