February 18, 2009

Pay Per View

Put this on Pay Per View. I would watch it. Got the link from Paul.

Just imagine if the tables were reversed. Frank and Waters are seated at the witness table instead of perched on the hearing room dais. The questioning would go something like this:

Chairman Frank, on July 14, 2008, you made the following pronouncements about Fannie Mae and Freddie Mac, the two huge government-sponsored enterprises that are the key players in mortgage finance:

“Fannie and Freddie are fundamentally sound.”

“They are not in danger of going under.”

“Looking at the financials, they’re solid.”

You followed that analysis with a forecast. Referring to legislation before your committee to allow the Treasury to lend to and buy unlimited shares in the GSEs, you said: “We’re doing three separate things that make it much less likely -- very, very unlikely -- that we’ll have this kind of a housing crisis six months or a year from now.”

Less than two months later, Fannie and Freddie were wards of the state.

Just answer the questions, Mr. Chairman.

GSE Enabler

As the ranking member of the House Financial Services Committee -- before you became chairman in 2007 -- you consistently opposed stricter regulation of Fannie Mae and Freddie Mac. I would just note that you received $42,350 from Fannie’s and Freddie’s political action committees and employees from 1989 to 2008.

In 2004, you received a report from the GSE regulator showing that Fannie and Freddie had manipulated their earnings, enriching their senior executives in the process. Yet you and your fellow committee members, primarily Democrats, looked the other way.

Even worse, you shot the messenger, Armando Falcon, director of the Office of Federal Housing Enterprise Oversight, who found accounting irregularities at both companies.

‘Innovation’ Lending

This is what you said to Falcon at a committee hearing:

“I don’t see anything in your report that raises safeness and soundness problems.”

Your distinguished colleague, Maxine Waters, was right there to back you up.

“We do not have a crisis at Freddie Mac, and particularly at Fannie Mae, under the outstanding leadership of Franklin Raines,” she said.

She went on.

“What we need to do today is to focus on the regulator, and this must be done in a manner so as not to impede their affordable housing mission.” That mission, as you noted, has seen “innovation flourish from desk-top underwriting to 100 percent loans.”

We all know how that worked out. Fannie had to restate earnings back to 2001, erasing $6.3 billion in previously reported profits.

Doing Penance

Former CEO Franklin Raines kept the lion’s share of the $91 million bounty he received for his six years of service at the company. (Raines had to cough up $24.7 million last year to settle a claim that he inflated earnings.)

Questioned by former congressman Chris Shays, Republican of Connecticut, about Fannie’s teensy 3 percent capital cushion, Raines said of the multi- and single-family loans the company holds: “These assets are so riskless that capital for holding them should be under 2 percent.”

Finally, Mr. Chairman, you used your influence as chairman of the House Financial Services Committee to secure $12 million for a troubled home-state bank under the TARP program. Treasury had stipulated that the banks be healthy.

It’s disingenuous to be critical of legislation you passed and a program you implemented when you’re the one bending the rules.

Mr. Chairman, we thank you for your candor in appearing before us today.

And now we have Barney, Maxine, and the rest of the Dimocrats blaming this on Bush and the Republicans. The Dimocrats fucked this up and we expect them to fix it? I don't know about you, but it is getting long overdue to descend on Washington with pitchforks. Barney, Maxine, Chuck "the schmuck" Schumer, and Chris Dodd need to be tarred and feathered and run out of town on a rail.

Here's more. From Dr. Ray.

All of you who voted for "change" in 2006 and in 2008, this is what you voted for. Hope you're happy.

Posted by denny at February 18, 2009 06:29 PM  

When I was a semi-young investor I thought it prudent to at least attend one shareholder meeting in my education. Having worked hard at construction and being frugal and cautious the lure of investing in FannieMae seemed all upside, a government secured agency, yet the possible upside of a private company. Met Mr.Raines at the 25th floor of some building in Seattle. Glad that in my youth I had met drug dealers and loan sharks, all the bells and whistles went off, I lost a little money but learned a big lesson, trust your instincts, Raines should be in jail.

Posted by: Mark on February 18, 2009 06:59 PM

That pillow biting faggot needs to be shot in the head.

Posted by: kerrcarto on February 18, 2009 09:05 PM

As I said a few days ago.

Well gotta go sharpen my pitchforks and get the torches ready.

Posted by: kerrcarto on February 18, 2009 09:08 PM

Kerrcarto: Why? Ain't nothing vital in that end of the creature.

Posted by: PeggyU on February 18, 2009 09:08 PM

12 scariest words in the english language: I am from the Government and I am here to help you.
i believe that Ronald Reagan said this.

Posted by: 13yankeebravo on February 18, 2009 09:43 PM

"Pandit volunteered to take a salary of $1 and no bonus until Citigroup is profitable again."

This quote caught my eye. Maybe our representatives should consider taking $1 salaries until the current financial disturbance is over. Just to show their solidarity with the common man and the common CEO.

Posted by: deadcenter on February 18, 2009 10:36 PM

"denny, forgive them. They don't know what they're doing."

Well, maybe I'm stretching that parable a tad!

Posted by: Toejam on February 19, 2009 02:30 AM

It's all on the record, but nobody gives a damn. There were a few voices -- including McCain -- warning of potential catastrophe. But every time someone tried to stave off disaster, the Democrats (Frank was particularly vocal) screamed that they were trying to deprive the poor of housing. And now these scum are running the show. It's like a sick joke. How have we fallen to this level of suicidal depravity?

Posted by: TalkinHorse on February 19, 2009 05:05 AM

There is now a class of people in the US who are above the law.

The result of which are surprising?

It's only going to get worse.

Posted by: pdwalker on February 19, 2009 06:46 AM

Every time I see/hear that despicable, vile thing named Frank, I'm sure my blood pressure goes up a few points. For that person to be in charge of anything more important than lawn clipping removal detail, let alone one of the most important committees in Congress, is simply astounding.

Posted by: Sandy G. on February 19, 2009 09:22 AM

The whole damn Black Caucus should be in jail for fighting the Republicans trying to fix the problem over the last six years or longer. Hell, in 2000 after Bush got elected he tried to warn congress and Chris Dodd filibustered the Republicans in the Senate and Barney Fag along with the Black Caucus fought tooth and nail in the House. Now they have an rookie empty suit acting like he knows everything. Somebody start the march and I'll join in.

Posted by: gene on February 19, 2009 10:04 AM

Dennis, you are so right friggin' on with this one. It drives me nuts, constantly hearing about Bush inheriting a surplus and then "His" administration getting us into this financial mess.

Maybe "we" deserve these mfcs's because we the voters are so stupid.....Linked

Posted by: Wollf on February 19, 2009 11:12 AM

Sad Reality.....

The truth is most of those of us who voted lukewarmly for McCain & against Socialist Obama were well aware of just who was really responsible for this mess.

It is just as true those who voted enthusiastically for Obama were not aware of this problem , who caused it or for that matter even gave a damn, nor do they really care to this day. As far as they are concerned , the time to care about politics is over & back to American Idol.

There is a very good reason for the mess this country is now in, it is the ignorance & stupidity of the voting public who elected Obama.The next four years are going to be catastrophic for this country, When the next election comes .....these same fool` s will line up & vote for Obama again or the democrat who replaced him.

Posted by: dudley1 on February 19, 2009 11:28 AM

I don't know Dudley1. Just read the headline on Drudge. Seems Wallstreet is calling the current administration out on it's announcement to change borrowers terms etc. This doesn't bode well for the Messiah and his apostles. I'm thinking longevity (in terms of his time in office, not life expectancy so as not to be confuse with the nutcases) of this administration may not make it 4 years. What's the charge levied against a POTUS that is unqualified for the job he was elected to. It's not Impeachment I'm sure, but there has to be a term for it.

Posted by: Ray on February 19, 2009 01:07 PM

Yeah, it's all on the record, but the libtard media isn't going to drive it and the wimpy repubics aren't going to argue it. So there you go.

Posted by: Lee on February 19, 2009 09:26 PM


Well, 47% of American`s who actually voted said no to Obama, how many of the alleged 53% who made him President were alive legitimate voter`s is another story .......do you really think Obama will pay any attention to wallstreet or Drudge? Wishful thinking, the only thing which register`s with people like Obama is to be voted out of office , have the Congress & Senate turn Republican or to be impeached . I do not see any of the above happening soon. all we can do is watch & wait for opportunity to strike at the polls & make the most of it.

Just remember how long conservatives had to wait to recover power from the Roosevelt Presidency & it`s Democratic heirs who kept his policies going for so long.. I do not think it will take that long this time as Obama is too arrogant to play the long card. Keep the faith.

Posted by: dudley1 on February 22, 2009 02:31 PM
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