Re: Fannie and Freddie – Who said what … and when did they say it ?

Excerpted from WSJ: “What They Said About Fan and Fred”,
October  2, 2008

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A special word is in order here for Congress. Today we’re running a collection of greatest Member hits in defense of Fannie Mae and Freddie Mac.

The guilty deserve such attention because those two government-sponsored enterprises did so much to turbocharge the credit mania. By providing subsidized rates of return to global investors, they helped fuel the bubble in housing and mortgage-backed securities that is now haunting so many financial institutions.As the quotes make clear, the Members fought furiously against any attempt to make Fan and Fred less dangerous.

The Bush Administration was on the right side of this debate for eight years, as was the late Clinton Treasury. This was a scandal in plain sight that all but a few ignored.

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Worst of the Worst

Rep. Barnie Frank: I do think I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing. House Financial Services Committee hearing, Sept. 25, 2003

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Worth reading – the complete list of quotes:
http://online.wsj.com/article/SB122290574391296381.html

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