Posts Tagged ‘financial crisis’

A bit of overlooked legislation….

Monday, October 27th, 2008

I would like to draw your attention to Senate bill S-190, the Federal Housing Enterprise Regulatory Reform Act of 2005, sponsored by Sen. Charles Hagel [R-NE] on January 26, 2005, and co-sponsored by Senators Elizabeth Dole [R-NC], John Sununu [R-NH], and… John McCain [R-AZ].

Simply put, this was a law that would have put further oversight on Fannie Mae and Freddie Mac, which might have averted, and certainly would have lessened the severity of, the financial crisis and the housing crash.

John McCain sponsored it. Bush supported it. Obama voted against it.

I’m just sayin’.

Now and Then, Again

Saturday, September 27th, 2008

I’ve been (rightly) chastised by my mother for not citing sources in my recent post, Now and Then.

So I went back and did an update, with proper attribution and sources. In the process, I found a choice excerpt from the New York Times:

The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.

Under the plan, disclosed at a Congressional hearing today, a new agency would be created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry.

The new agency would have the authority, which now rests with Congress, to set one of the two capital-reserve requirements for the companies. It would exercise authority over any new lines of business. And it would determine whether the two are adequately managing the risks of their ballooning portfolios.

Bush saw it coming. The Republicans introduced this as legislation, and the Democrats blocked it, because it would slow the growth of home ownership and hurt the housing market. The great market the Democrats were protecting was, as we know now, and Bush knew then, a bubble that could not possibly be sustained.