The Republicans were right and way out front in calling for new regulations.
The Democrats were wrong in resisting those proposed regulations and defending the fiasco of Freddie & Fannie.
Richard Baker (R) - Louisiana Predicted the Housing Gate fiasco
Maxine Water (D) - Praise Frank Raines - trying to fix something that was not broke - Outstanding leadership, get your money for nothing and your houses are free. Everything worked just fine, even exceed housing goals. The focus should be on the regulator in such a way so as to not impede affordability of their housing mission, sighting desk top underwriting to 100% funded loans.
Gregory Meeks (D) - Pissed off at OFHEO - Office of Federal Housing Enterprise Oversight. Takes it out on the Regulators, questions their competence, asked why anyone should trust them - Excuse to have a forum and talk about Regulation of Freddie Mac and Fannie Mae.
Ed Royce (R) - Asked for a new regulatory structure for Freddie Mac, Fannie Mae, and home loan banks. Wanted regulatory powers similar to the OCC & Federal Reserve.
Lacy Clay (D) - Called the hearings regarding Frank Raines a Lynching. Stated that nothing was wrong and called findings inconsistent & a rush to judgment.
Christopher Shays (R) - Pointed out that both Fannie Mae and Freddie Mac would not fall under Sarbaines-Oxley and they were playing by their own rules, and called out those present who were on the payroll of Fannie Mae and Freddie Mac. He warned about the severity of the problems. Questioned Frank Raines about the Portfolio set-asides of Fannie Mae and Freddie Mac because it was not in line with other banks.
Artur Davis (D) - Expressed his concern over the investigators' judgments & motives about the management of the institution [Fannie Mae and Freddie Mac]
Barney Frank (D) - Stated that there was nothing wrong. And that there were no safety and soundness problems, and that the report did not serve the public well by bringing up these issues.
Don Manzullo (R) - Called out Frank Rains & Jamie Gorlic on the Bonus Scheme, where the targets were made by meeting the payout goals to the penny. They understood the rules but chose not to follow them, if they had there would have been no bonuses.
Franklin Raines - testified that home loans are never riskless and that capital held in reserve should be under 2%!
Financial Institutions bought the loan packages because they were government insured and backed! They did so not knowing that the Democrats let Freddie and Fannie cheat so these bad loan packages spread throughout the financial institutions like a cancer!
The result is that the Cash Cows, Freddie Mac and Fannie Mae, were protected by Democrats when they killed legislation and lied to cover up problems with these institutions. The Republicans and McCain tried repeatedly to increase regulations to control this runaway train and keep it from derailing the economy.
Bill Clinton - Stated that the responsibility Democrats bear is that they resisted any efforts by Republicans, the congress or even himself while president put in place any standards to tighten up on Fannie and/or Freddie.
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