http://bartonbulletin.wordpress.com/2008/09/17/mccain-co-sponsored-fanniefreddie-reform-in-2005/
McCain Co-Sponsored Fannie/Freddie Reform… In 2005 While the barbs fly back and forth between the McCain and Obama campaigns as to who can better manage the current financial crisis, one indisputable fact is John McCain has actively been seeking reforms that may have prevented the current situation. Congressional records show McCain Co-sponsored S. 190 the Federal Housing Enterprise Act of 2005. On May 25, 2006 McCain made this impassioned plea on the floor of the Senate. Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal. The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac. The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform. For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac–known as Government-sponsored entities or GSEs–and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay. 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. I urge my colleagues to support swift action on this GSE reform legislation. The bill included the following provisions: (1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board. Sets forth operating, administrative, and regulatory provisions of the Agency, including provisions respecting: (1) assessment authority; (2) authority to limit non-mission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting. Where was Obama and what was his position on Freddie/Fannie while McCain was calling for reform? Obama was the beneficiary of hundreds of thousands of dollars from the lobbyists McCain mentions in this speech, making him the #2 recipient of Fannie/Freddie money. On Oct 12, 11:14 am, Hollywood <[EMAIL PROTECTED]> wrote: > mark, > > A letter? Why didn't he sponsor or co-sponsor legislatition to correct > the percieved problems? Isn't that what legislators are supposed to > do? Did he identify the "necessary steps"? NO. > Basically, he said, "boy this could turn out nasty, somebody ought to > maybe think about doing something." > > A letter? Big fucking deal. > > On Oct 12, 6:05 am, mark <[EMAIL PROTECTED]> wrote: > > > > > Sen. John McCain's 2006 demand for regulatory action on Fannie Mae and > > Freddie Mac could have prevented current financial crisis, as HUMAN > > EVENTS learned from the letter shown in full text below. > > > McCain's letter -- signed by nineteen other senators -- said that it > > was "...vitally important that Congress take the necessary steps to > > ensure that [Fannie Mae and Freddie Mac]...operate in a safe and sound > > manner.[and]..More importantly, Congress must ensure that the American > > taxpayer is protected in the event that either...should fail." > > > Sen. Obama did not sign the letter, nor did any other Democrat. > > >http://www.humanevents.com/article.php?id=28973- Hide quoted text - > > - Show quoted text - --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. 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