The Banking Mess

The banking mess got it’s start in 1995 in the Clinton administration with the expansion of the community development act. They introduced legislation forcing banks to ease the lending restrictions so low income people could buy homes with no money down and poor credit thus creating the sub-prime housing debacle.  This had unintended consequences interjecting a poison pill into the banking system and that was the sub-prime loan. When the housing market could no longer sustain itself banks got stuck with trillions of dollars of mortgages that the asset had diminished in value.

The Bush administration sounded the alarm in 2003 along with John McCain about Fannie May and Freddie Mac being insolvent but went unheeded by democrats in congress on the Banking Committee that were being lobbied by Fannie and Freddie. Barny Frank, Chris Dodd both democrats. Among 300 some others mostly democrat and especially on the Banking Committee received millions in PAC money from Fannie May and Freddie Mac to cover up the fact that they were insolvent . Barack Obama received 120 thousand in PAC money from Fannie May only Chris Dodd received more.

Three of the top former CEO’s all democrats, appointed by the Clinton administration to head Fannie May are now working for the Obama campaign. One of them took over 90 million in bonuses from Fannie May in 9 years. In addition congress was lobbied throughout this period buy CEO’s at Fannie May to continue to expand the easing on lending to show more earnings on the books thus to receive bigger and bigger bonuses. I am sure they will all get jobs in the Obama administration if he wins.

To name a few names;

Rep. Barney Frank, Democrat said in 2004 at the congressional sub hearing;

I don’t see anything to under safety and soundness report.

To contact Rep. Frank about this call 202-225-5931 or 617-332-3920 

Rep. Gregory Meeks, Democrat said in 2004 at the congressional sub hearing;

As well at the fact I’m just pissed off cause if it wasn’t for you I don’t think we would be here in the first place. There is nothing to indicate that anything was wrong with fannie may.

To contact Rep. Meeks about this 202-225-3461

Rep. Maxine Waters, Democrat said in 2004 at the congressional sub hearing;

Through nearly a dozen hearings frankly we are trying to fix something that wasn’t broke. Mr Chairman we do not have a crises.

To contact Rep. Waters about this call 202-225-2201

Bill Clinton said later;

I think the that the responsibility that the democrats have is resisting efforts by the republicans to put some standards and tighten up on Fannie may & Freddy mac.

The vote went like this; All the republicans on the Banking Committee voted to tighten up on Fannie may & Freddy mac and all the democrats against. Later went to a full senate vote on party lines where the democrats were successful in a filibuster to not get the 60 votes needed to pass legislation in the senate. So even though republicans had controll of congress at the time it was democrats who stopped action. The most infuriating thing of all is when I hear these same democrats spouting off it was 8 years of Bush got us into this mess. 

This is just a few names of some of the democrats at the hearings who stopped legislation to rein in Fannie may and Freddie mac. To see them in there own words go to www.elinkfind.net and watch the video of 2004 at the congressional sub hearing.

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