Anonymous asked in Politics & GovernmentPolitics · 1 decade ago

I saw a link of somebody here claiming Dems stopped Fannie-Freddie reform, but the dates were all in 2001-2003?

How did Dems block anything then? They were in the minority then and every bill they presented was fillibustered?

The Republicans had the majority and speaker chair in Congress (Trent Lott if that tells you anything) until 2007!!!

How on Earth could Democrats have blocked bank reform?


"Johnny" - you mean the REPUBLICAN written Gramm/Leach/Bliley bil, right?

Update 2:

I know "reform" didn't happen - but I've never seen any proof it was because of Democrats.

Newt Gingrich was also a FF lobbyist at that time, and personally fought more oversite, as that would have been more REGULATION which Republicans area against? Remember?

We've STILL got Republicans here claiming there was TOO MUCH regulation of banks, not too little.

You guys need to get your story straight! And NO, nobody made the banks make loans - that is another FOX TV red herring - the banks created the sub-prime market BY THEMSELVES!!!

Update 3:

Noreen - thanks for the good info.

But your quotes talk about the creation of a new agency and "moderanizing" but nothing about decreasing risk. In fact it's talking about the government GUARANTEEING MORE BAD LOANS, thus encouraging FF or other banks to make even MORE RISKY LOANS.

That coupled with the fact that Bush passed laws during the same time allowing bundling and reselling of toxic assets in a dangerous manner, make the claim that Bush and/or Republicans were advocating anything that would have prevented the housing crisis extremely tenuous at best.

About like I expected.

5 Answers

  • 1 decade ago
    Favorite Answer

    That would be from me.

    "In 2003, while the ranking Democrat on the Financial Services Committee, Frank opposed a Bush administration proposal for transferring oversight of Fannie Mae and Freddie Mac from Congress and the Department of Housing and Urban Development to a new agency that would be created within the Treasury Department. The proposal reflected the administration's belief that Congress "neither has the tools, nor the stature" for adequate oversight. Congress blocked the proposal"

    "In August of 2007, President Bush calls upon Congress to push through 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.”

    In December of 2007, President Bush warns Congress to pass legislation reforming GSEs, saying “These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I’ve called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon.”

    In March of 2008, President Bush calls on Congress to “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.”

    In April of 2008, President Bush urges Congress to “modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes.”

    On May 3rd of 2008, Bush pleads with Congress to make legislation before Fanny and Freddie start to collapse. In his radio address, Bush says, “Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.”

    On May 19th of 2008, Bush pleads with Congress again with his radio address saying, “The government ought to be helping credit-worthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator.”

    On May 31st of 2008, Bush makes yet another radio address saying, “Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans.”

    In June of 2008, Bush told Congress, “We need to pass legislation to reform Fannie Mae and Freddie Mac.”

    In July of 2008, Congress finally passed a reform bill addressing Fannie Mae and Freddie Mac only after it became clear that the institutions were failing"

    and good grief there is more in the third link!

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  • 1 decade ago

    The republicans didn't have a super majority like the dems do now. Any bill brought before the Senate could have been filibustered by the dems and there was nothing that the republicans could do about it. The dems were warned many times even by president Bush but Barney Frank and the rest of the dems just played it off even going as far as praising Fanny and Freddie and extolling virtues on the directors of each.

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  • Bethy
    Lv 7
    1 decade ago

    This is late 2004 when dems had 48 in the senate and 233 in the house

    Youtube thumbnail

    In the 108 Congress, Barney Frank (D-MA), said : " Freddie Mac and Fannie Mae are not facing any kind of financial crisis."

    In 2005, the Federal Housing Enterprise Regulatory Reform Act, sponsored by Senator Chuck Hagel (R-NE) and co-sponsored by Senators Elizabeth Dole (R-NC), John McCain (R-AZ) and John Sununu (R-NH), would have increased government oversight of loans given by Fannie Mae and Freddie Mac. It died in the Senate Banking, Housing, and Urban Affairs Committee.

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  • Google "Grahm-Leach-Bliley" and the repeal of the Glass-Steagall Act. You may learn something.

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  • Scott
    Lv 6
    1 decade ago

    It was toward the END of 2004.

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