Barney Frank–Hang Him High–Just Kidding–Put Barney Frank In Jail for 30 Years For Malfeasance–Fair Enough!

Posted on April 8, 2009. Filed under: Blogroll, Economics, Investments, Links, Politics, Quotations, Rants, Raves, Taxes, Technology, Uncategorized, Video | Tags: , , , , , , , , , |

 

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The American people are tired of listening to Barney Frank blaming everyone but himself and the Democratic Party when it comes to the subprime-mortgage crisis and the role played by Fannie Mae and Freddie Mac in creating this situation.

If both the Republicans and Democrats had insisted on tougher regulation of mortgage lending five years ago, much of the bubble in real estate could have been avoided and may be even the current recession.

Instead the Democratic Party attacked the regulators of Fannie Mae and Freddie Mac for doing their jobs and defended Fannie Mae and Freddie Mac.

Unfortunately for Barney Frank  and the Democratic Party, some of this was caught on video and is now on YouTube.

The American people do not want to lynch anybody, but it is high time Barney Frank be censured for his role in the whole affair and kicked off of the committee he now chairs.

Mr. Frank, you sir are a disgrace.

Have you no shame?

Apparently not:

Barney Frank v Harvard Student

Bill O’Reily vs Barney Frank TOTAL SMACKDOWN ANNIHILATION!

Who is Responsible? (Meltdown): Fannie Mae – Freddie Mac – Wall Street – Bill Clinton – George Bush?

Timeline shows Bush, McCain warning Dems of financial and housing crisis; meltdown

Explosive Video, Fannie Mae CEO calling Obama and the Dems the “Family” and “Conscience” of Fannie Mae

Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis2

Obama and Democrats are Responsible: Fannie Mae/Freddie Mac

Government Takes Over Fannie Mae, Freddie Mac

Steve Forbes on Fannie Mae, Freddie Mac, and the Subprime Crisis

Jim Rogers Speaks the Truth about Fannie Mae and Freddie Mac

Charlie Rose – Fannie Mae & Freddie Mac

THE NEWSHOUR WITH JIM LEHRER | Paul Solman’s Moral Hazard Pt. 1 | PBS

 

THE NEWSHOUR WITH JIM LEHRER | Paul Solman’s Moral Hazard Pt. 2 | PBS

 

The Mortgage Meltdown

 

 

Financial Derivatives: What are They? – Housing Bubble Collapse – Unregulated Insurance

 

 

Credit Default Swaps explained clearly in five minutes

 

Credit Default Swaps

 

LOL

Bird and Fortune – Financial Adviser

 

Barney Frank

Barney Frank

 

 

Background Articles and Videos 

 

Credit default swap (CDS)

Harvard Student Takes on Barney Frank Over His Role In The Economic Melt-Down With Video

Posted by Peg On April – 7 – 2009

“…Here are some more facts about President warnings and attempts to avoid the housing collapse caused, in large part, by Freddie and Fannie.
President Bush’s efforts over the years, not once, but several from The White House:

2001 April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”

2002 May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)

2003 September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact “legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises” and set prudent and appropriate minimum capital adequacy requirements. 2004 February: The President’s FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: “The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator.” (2005 Budget Analytic Perspectives, pg. 83)

2005 April: Treasury Secretary John Snow repeats his call for GSE reform, saying “Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system.” (Secretary John W. Snow, “Testimony Before The U.S. House Financial Services Committee,” 4/13/05)

2007 August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying “first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options.” (President George W. Bush, Press Conference, The White House, 8/9/07)

2008 February: Assistant Secretary David Nason reiterates the urgency of reforms, says “A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully.” (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)

March: President Bush calls on Congress to take action and “move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages.” (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08) …”

http://www.chandlerswatch.com/2009/04/07/harvard-student-takes-on-barney-frank-over-his-role-in-the-economic-melt-down-with-video/

The Real Culprits In This Meltdown

By INVESTOR’S BUSINESS DAILY | Posted Monday, September 15, 2008

Big Government: Barack Obama and Democrats blame the historic financial turmoil on the market. But if it’s dysfunctional, Democrats during the Clinton years are a prime reason for it.

“…The untold story in this whole national crisis is that President Clinton put on steroids the Community Reinvestment Act*, a well-intended Carter-era law designed to encourage minority homeownership. And in so doing, he helped create the market for the risky subprime loans that he and Democrats now decry as not only greedy but “predatory.”

Yes, the market was fueled by greed and overleveraging in the secondary market for subprimes, vis-a-vis mortgaged-backed securities traded on Wall Street. But the seed was planted in the ’90s by Clinton and his social engineers. They were the political catalyst behind this slow-motion financial train wreck.

And it was the Clinton administration that mismanaged the quasi-governmental agencies that over the decades have come to manage the real estate market in America.

As soon as Clinton crony Franklin Delano Raines took the helm in 1999 at Fannie Mae, for example, he used it as his personal piggy bank, looting it for a total of almost $100 million in compensation by the time he left in early 2005 under an ethical cloud.

Other Clinton cronies, including Janet Reno aide Jamie Gorelick, padded their pockets to the tune of another $75 million.

Raines was accused of overstating earnings and shifting losses so he and other senior executives could earn big bonuses.

In the end, Fannie had to pay a record $400 million civil fine for SEC and other violations, while also agreeing as part of a settlement to make changes in its accounting procedures and ways of managing risk. …”

http://www.ibdeditorial.com/IBDArticles.aspx?id=306370789279709

what caused the melt down Investors business daily 5 part series.


What caused this loan crisis, Investors business daily 5 part series.
‘Crony’ Capitalism Is Root Cause Of Fannie And Freddie Troubles

By TERRY JONES
INVESTOR’S BUSINESS DAILY | Posted Monday, September 22, 2008 4:30 PM PT

“…Barack Obama has repeatedly blasted “Bush-McCain” economic policies as the cause, as if the two were joined at the hip.

Funny, because over the past 8 years, those who tried to fix Fannie Mae and Freddie Mac — the trigger for today’s widespread global financial meltdown — were stymied repeatedly by congressional Democrats.

This wasn’t an accident. Though some key Republicans deserve blame as well, it was a concerted Democratic effort that made reform of Fannie and Freddie impossible.

The reason for this is simple: Fannie and Freddie became massive providers both of reliable votes among grateful low-income homeowners, and of massive giving to the Democratic Party by grateful investment bankers, both at the two government-sponsored enterprises and on Wall Street.

The result: A huge taxpayer rescue that at last estimate is approaching $700 billion but may go even higher.

It all started, innocently enough, in 1994 with President Clinton’s rewrite of the Carter-era Community Reinvestment Act.

Ostensibly intended to help deserving minority families afford homes — a noble idea — it instead led to a reckless surge in mortgage lending that has pushed our financial system to the brink of chaos. …”

http://forums.audiworld.com/showthread.php?p=11460754

The Last Two Years

By Randall Hoven

 “…What Congress would not investigate was anything about Fannie Mae and Freddie Mac.  In fact, they fought against such investigations and cast aspersions against anyone who would even doubt the soundness of those institutions.  Here is what Barney Frank said:

These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis.  The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.
You can also see on YouTube how Democrats treated the regulators trying to reign in Fannie and Freddie.
But now we know what happened.  Fannie and Freddie were run corruptly and ineptly and went bankrupt.  Their $1.5 trillion portfolios had to be rescued by the government this year.  Franklin Raines, the Clinton-appointed CEO of Fannie Mae who was vigorously defended by Congressional Democrats, was sued by government regulators for cooking the books to the tune of $10 billion to increase his own bonuses to the tune of tens of millions.  He settled his suit for an estimated $25 million.
On the other hand, here is what the New York Times had to say in 2003 . 
The Bush administration is rightly pushing for the Treasury Department to regulate the two giants, along with the network of federal home loan banks. Freddie Mac and Fannie Mae provide financing to lenders by creating a secondary market for mortgages. All told, these two institutions’ debt portfolio exceeds more than $1.5 trillion. Their current regulator is ill equipped to keep tabs on Freddie’s and Fannie’s sophisticated hedging strategies and the other financial moves they use to manage their huge investments. 
And here is what John McCain said on the Senate floor: 
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac…  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. …”

Why Barney Frank resisted additional regulation of Fannie Mae

Ethel C. Fenig

“…While Bill O’Reilly absolutely exploded at Rep. Barney Frank (D-MA) on his Fox news show The O’Reilly Factor, screaming at him, “Shouldn’t everybody in the country be angry with you right now?” – while asking Frank  to remove himself as chairman of the House Financial Services Committee, which oversaw Fannie Mae and Freddie Mac, O’Reilly was uncharacteristically reticent about another factor in Frank’s personal life which bear upon these institutions. 
Now that Fannie Mae is at the epicenter of a financial meltdown that threatens the U.S. economy, some are raising new questions about Frank’s relationship with Herb Moses, who was Fannie’s assistant director for product initiatives. Moses worked at the government-sponsored enterprise from 1991 to 1998, while Frank was on the House Banking Committee, which had jurisdiction over Fannie.

Both Frank and Moses assured the Wall Street Journal in 1992 that they took pains to avoid any conflicts of interest. Critics, however, remain skeptical.

And they have every reason to be skeptical; Moses and Frank were lovers who lived together from 1987 until 1998. 
“It’s absolutely a conflict,” said Dan Gainor, vice president of the Business & Media Institute. “He was voting on Fannie Mae at a time when he was involved with a Fannie Mae executive. How is that not germane?

“If this had been his ex-wife and he was Republican, I would bet every penny I have – or at least what’s not in the stock market – that this would be considered germane,” added Gainor, a T. Boone Pickens Fellow. “But everybody wants to avoid it because he’s gay. It’s the quintessential double standard.” 


Double standard?  The standard for the first declared gay Democratic Congressman and a gay lover involved in a financial meltdown under a Republican president’s term is to knock the Republican president, as did the first female Speaker of the House, Rep Nancy Pelosi (D-CA), or to ignore it, as did most of the MSM. 

Although Frank now blames Republicans for the failure of Fannie and Freddie, he spent years blocking GOP lawmakers from imposing tougher regulations on the mortgage giants. In 1991, the year Moses was hired by Fannie, the Boston Globe reported that Frank pushed the agency to loosen regulations on mortgages for two- and three-family homes, even though they were defaulting at twice and five times the rate of single homes, respectively.

Three years later, President Clinton’s Department of Housing and Urban Development tried to impose a new regulation on Fannie, but was thwarted by Frank. 

 
 

 

 
 
 
 
 

Clinton now blames such Democrats for planting the seeds of today’s economic crisis.  

 

“I think the responsibility that the Democrats have may rest more in resisting any efforts by Republicans in the Congress or by me when I was president, to put some standards and tighten up a little on Fannie Mae and Freddie Mac,” Clinton said recently. …”

Barney Frank protests (and sputters and bullies) too much

By Michelle Malkin  

“…Have you seen the video of a Harvard student challenging Barney Frank to take responsibility for his role in the subprime crisis?

Watch.

His defensive bullying and sputtering and ranting about “right-wing attacks” speaks for itself.

So do the FOIA records that Judicial Watch obtained and released yesterday, which I linked yesterday. A reminder for Barney Frank (and ammunition for the next time a brave student wants to take him on again): …”

http://michellemalkin.com/2009/04/07/barney-frank-protests-and-sputters-and-bullies-too-much/

Barney’s Great Adventure

The most outspoken man in the House gets some real power.

by Jeffrey Toobin

“…According to Frank, at the root of the real-estate crisis was a misguided notion that homeownership should be available to all people—what President Bush has called “the ownership society.” “The ‘I told you so’ here is that homeownership is a nice thing but it is not suitable for everybody,” Frank said at Boston College. “There are people in this society who don’t have enough money to be homeowners, and there are people whose lives are not sufficiently integrated for them to take on the responsibility to be a homeowner. And we did too much pushing of people into inappropriate mortgages and into homeownership.” He said that many people would always be renters, and that there was nothing wrong with this. “We need to get back in the business of building rental housing and preserving the housing we have,” he said. …”

 http://www.newyorker.com/reporting/2009/01/12/090112fa_fact_toobin?currentPage=2

New Documents Uncovered by Judicial Watch Show Congress Ignored Corruption at Fannie Mae and Freddie Mac for Years

Contact Information:
Press Office 202-646-5172, ext 305

Washington, DC — April 2, 2009“…Congress Warned on Fannie and Freddie Misdeeds, yet Liberals in Congress Blocked Attempts to Rein in the Government Sponsored Enterprises

Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that as part of its ongoing investigation of the government’s role in the financial crisis it has uncovered new documents. The documents show that members of Congress for years were aware that Fannie Mae and Freddie Mac were playing fast and loose with accounting issues, risk assessment issues and executive compensation issues, even while liberals in Congress continued to block attempts to regulate the two Government Sponsored Enterprises (GSEs).

Judicial Watch obtained the documents from the Federal Housing Finance Agency (FHFA) in response to a Freedom of Information Act (FOIA) request dated December 4, 2008. Judicial Watch requested records related to members of Congress activity regarding the policy of Fannie Mae and Freddie Mac to increase lending to individuals with poor credit risk, as well as correspondence and records about contacts between FHFA and Fannie and Freddie. Among the important documents: …”

http://www.judicialwatch.org/news/2009/apr/new-documents-uncovered-judicial-watch-show-congress-ignored-corruption-fannie-mae-and

American’s Watchtower

Barney Frank and Chuck Schumer’s Role in the Fannie Mae Failure

“…Besides their total ignorance about the troubles that Fannie Mae and Freddie Mac were headed towards is the fact that these two men, and other Democrats, helped to make the problem worse.

In fact, Frank & Co. made matters worse by pushing Fannie Mae and Freddie Mac to take on greater risk. They wanted more loans to people who might not qualify for traditional bank financing. And, as The Wall Street Journal has pointed out, Frank “pressured regulators to ease up on their capital requirements

 These companies were forced to loan money to people who couldn’t afford it in the interest of “being fair.” Rules were relaxed and money was loaned and predictably low income families defaulted on loans that they never had any business getting in the first place and now you and I have to pay for it.

 Another liberal policy and another liberal failure. And now we must all pay for it. But hell, they meant well. …”

http://americaswatchtower.com/2008/09/17/barney-frank-and-chuck-schumers-role-the-fannie-mae-failure/

Joseph Gyourko on Fannie, Freddie, and the Housing Bust

 

Deconstructing the Subprime Crisis

 

Wall Street’s Day of Reckoning: The Fannie & Freddie Bailout

 

Franklin Allen on Lessons from the Subprime Crisis

 

 

Franklin Allen on Past Crises

 

Richard Herring on Mortgage-backed Securities

 

Susan Wachter on Securitizations and Deregulation

 

 

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 Although fairly silent then

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5 Responses to “Barney Frank–Hang Him High–Just Kidding–Put Barney Frank In Jail for 30 Years For Malfeasance–Fair Enough!”

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Wow, I’m amazed that when some Americans have a quibble about the politics of spending they start a tax revolt. Our GLBT families AND children are SUB-American in Federal Law; we suffer NEEDLESSLY in times of crisis, disease, and death due to our legal exclusion from FAMILY LAW.

I’m afraid YOU will have to pay OUR taxes from now on, until WE are equal. [National Equality Tax Revolt 2009]

The Federal Government is out of control in terms of both spending and taxes.

This revolute is national and is getting great traction.

The political class is in denial and are about to be educated.

Every two years the American people get to elect 435 representatives and 33 Senators.

Many will lose their jobs the next election.

[…] Barney Frank–Hang Him High–Just Kidding–Put Barney Frank In Jail for 30 Years For Malfeasance… […]


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