Politics As Usual
Shining a Light on Power and Policy
Tom Shine covers congressional politics for ABC News.
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"WE ALWAYS WON" and "WE TOOK NO PRISONERS"
July 14, 2008 9:05 AM
Whether it's bridges falling down, leaking levees, or overextended financial institutions, you can always count on one thing. There were plenty of warnings of impending doom but Congress heeded the lobbyist, took their money and for the most part ignored the warnings.
In this morning's WASHINGTON POST, David Hilzenrath says 2000 Clinton Administration undersecretary of treasury, Gary Gensler, called on CONGRESS to give regulators more power "TO SET CAPITAL REQUIREMENTS FOR FANNIE MAE and FREDDIE MAC." But, according to the article, FREDDIE MAC fought back and spokeswoman Sharon McHale countered, "WE THINK THAT THE STATEMENTS EVIDENCE A CONTEMPT FOR THE NATION's HOUSING and MORTGAGE MARKETS." The article says Democrat CHUCK SCHUMER opposed one bill that would have beefed up the regulators, claiming a "HOSTILE REGULATOR COULD CHOKE THE COMPANIES."
Hilzenrath says several years ago, a top lobbyist for Freddie Mac held more than 75 FUNDRAISERS for members of the HOUSE FINANCIAL SERVICES COMMITTEE in an 18-month period and raised nearly $3 MILLION. The article goes on to say that in 2006, FREDDIE had to pay a record $3.8 MILLION FINE for violating federal election laws. An internal 2004 memo written by FANNIE MAE executive Daniel H. Mudd said in the political arena, "WE ALWAYS WON" and "WE TOOK NO PRISONERS."
But there were a few members of Congress who had some guts. Hilzenrath says REPUBLICAN RICHARD H. BAKER, as chairman of a powerful subcommittee that had jurisdiction over FANNIE and FREDDIE, tried repeatedly to make them more accountable and got threats from FANNIE's lawyers for his trouble.
And one republican saw the writing on the wall way back in 1991. According to NYT reporter Julie Creswell, Iowa's JIM LEACH, who warned that the mortgage finance giants were insulated from the real world, said, "FANNIE MAE and FREDDIE MAC are beginning to seem like an ARROGANT, TWO-HEADED MONOPOLY, controlling 90 PERCENT OF THE MARKET."
That was back in 1991.
July 14, 2008 | Permalink | User Comments (10)
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Lobbyists and greed have always been on the side of the mortgage companies. Even when they use underhanded policys to loan money and people loose their homes because of naitivity, they stil go on and get Federal help. So goes America!!!
Posted by: militarymom | Jul 14, 2008 9:20:06 AM
well maybe if the current administration took the time to look into predatory lenders and frauds that was going on instead of caring about big oil and the war in iraq this could of been prevented once again thanks bush and company for the worst 7 years
Posted by: angie | Jul 14, 2008 9:36:58 AM
Maybe it's time we let the money-grubbing investors who whine about regulation, bail themselves out of this. I'm sure if G.W. and his buddies weren't involved, Uncle Sam would let them fail.
I see he's still looking to help his buddies with the oil leases too!
Get off it George!
Posted by: DAVID NH | Jul 14, 2008 10:41:34 AM
More examples of the Clinton administration trying to head off problems at the pass that should have been avoided. Decider Bush and his absolute power GOP Congress threw the gates open to the greedheads and now we are suffering one crisis after another.
Bush's GOP has looted our nation's treasury for the fatcats. And now he signs an exec. order permitting off shore oil drilling. The way to cure one crisis is always to fatten the wallets of his corporate pals!! How convenient. He has no conscience.
Posted by: hopesprings52 | Jul 14, 2008 10:56:18 AM
Thank we have a limit on the years a president can serve. Bush has done the most harm of any president I can remember in my 60 years. He has robbed from the people and is leaving with that big,s#$%@ty grin on his face calling us all "SUCKAS"...
Posted by: newvoter | Jul 14, 2008 11:50:59 AM
The rich get richer. It always seem when any bail outs are done the average american family is not effected that much financially. I guess because they are so far down that it takes a while for the results to trickle their way.
Posted by: DEMOCRAT FOR THE WHITE HOUSE | Jul 14, 2008 12:14:54 PM
and a broken clock is right twice a day. Playing Monday morning quarterback does no good -- where was the "public outrage" when these issues were being raised ... nowhere, because people were happy to sit back in their rapidly value-escalating homes and take out equity/2nd mortgages. Where was "public outrage" when no-interest down, flex APRs and virtually no credit checks required became common? Nowhere, because people were moving up, investing in property, looking at their own interests. People/consumers are just as much to blame as the lobbyists/regulators/politicians. And so are journalists who probably noted any of the earlier actions in a paragraph spread the day the vote occurred, instead of actually reporting any discussion leading up to votes/decision-making. If everyone did their part (i.e., government led, regulators regulated risk and actions, lobbyists pushed for business interests, and people were informed and active in the process to hold the others accountable) the system would work -- when people/citizens are absent, you can't come back in the room and say everyone else did a rotten job.
Posted by: Drew | Jul 14, 2008 12:42:40 PM
It is all in our heads.....
Just in our heads....
lets not forget this, as our taxes bail out the rich and let the middle class and poor fall. Just in our heads....
I am sooo glad I can honestly say I never voted for a Bush or anyone associated with them.
Posted by: becky | Jul 14, 2008 12:48:26 PM
BECKY
i agree i never voted for bush either and this year i will not be voting for mccain mccain will destroy this country even futher just think 25 years of senate the last 7 years agreeing with bush 95 percent of time like the old saying goes YOU CANT TEACH AN OLD DOG NEW TRICKS like the same vote mccain!!!!!! he will not change and he will not bring change
Posted by: angie | Jul 14, 2008 1:24:12 PM
Honestly, you people are just a bunch of synical, pessimists...JUST KIDDING! I am TOTALLY with Becky.
Posted by: irma | Jul 23, 2008 6:07:35 PM
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