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| 5/23 |
| 2008/9/16-23 [Politics/Domestic/Election, Politics/Domestic/President/Bush] UID:51198 Activity:low |
9/16 (Brought up with update)
Interesting old NYTimes article. It seems Bush tried to overhaul
Fannie and Freddie regulation 5 years ago, but was blocked by Dems.
http://csua.org/u/mdc
\_ Thanks, this renewed my faith in McCain
\_ How was it blocked by Dems if the GOP had a majority of both
houses of Congress?
\_ Newer NYTimes article. The house DID pass a reform bill 3 years
ago (with bipartisan support) but it died in the Senate after
Greenspan and the Bush administration opposed it, according to
the former Republican congressman who had pushed for it.
http://csua.org/u/mdd
\_ McCain apparently sponsored the this Bill in the Senate, but
it never made it out of committee. http://csua.org/u/me8
\_ Senator John McCain (R-Ariz.) said: "I'm always for less
regulation" and referred to himself as "fundamentally, a
deregulator."
\_ So what? So am I, but Freddie and Fannie were a
terrible implementation of priviatization and
deregulation. What kind of idiot says to businessmen
"Ok, I'll take all the risk, and you can have all the
profits. We'll have congress watch you." That's
just flat out retarded.
\_ So far, I have never seen a politician come out and
say "I am in favor of bad government" but it is amazing
to watch the GOP go from "government is bad" to
"nationalize everything" in two weeks.
\_ As a free market person I am disappointed in the
actions of the GOP. I don't much care for the
GOP, but WTF are they thinking? My take:
1) Preserve stock equity for their cronies
2) Pander to the public ahead of the election
No honest Republican or fiscal conservative wants
any part of this crap plan they are wasting taxpayer
money on. In fact, who *does* want it other than
Wall Street? Why should the gov't bail out Wall
Street? The gov't is broke. Wall Street has been
raking in massive profits. The US banking system
will be just fine. Reprice the debt, declare a
loss, and move on. Good ideas will still find
capital. There's a lot of money flowing in the
markets around the world.
\_ The entire world is a free market. If the
US government is incompetent, good people
with good ideas will simply move their ideas
to countries where it is profitable for them.
If the US government is unfit to compete, then
it deserves to die. -free market person
\_ The problem is that so much of our economy is
based on nothing -- just moving numbers around
computer systems. Financial markets are supposed
to support real markets, not the other way around.
\_ Nationalization of Freddie and Fannie is a good thing. It should
never been privatized. |
| 5/23 |
|
| csua.org/u/mdc -> query.nytimes.com/gst/fullpage.html?res=9E06E3D6123BF932A2575AC0A9659C8B63&sec=&spon=&pagewanted=print September 11, 2003 New Agency Proposed to Oversee Freddie Mac and Fannie Mae By STEPHEN LABATON 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. A report by outside investigators in July concluded that Freddie Mac manipulated its accounting to mislead investors, and critics have said Fannie Mae does not adequately hedge against rising interest rates. Mr Snow said that Congress should eliminate the power of the president to appoint directors to the companies, a sign that the administration is less concerned about the perks of patronage than it is about the potential political problems associated with any new difficulties arising at the companies. The administration's proposal, which was endorsed in large part today by Fannie Mae and Freddie Mac, would not repeal the significant government subsidies granted to the two companies. And it does not alter the implicit guarantee that Washington will bail the companies out if they run into financial difficulty; that perception enables them to issue debt at significantly lower rates than their competitors. Nor would it remove the companies' exemptions from taxes and antifraud provisions of federal securities laws. The proposal is the opening act in one of the biggest and most significant lobbying battles of the Congressional session. After the hearing, Representative Michael G Oxley, chairman of the Financial Services Committee, and Senator Richard Shelby, chairman of the Senate Banking Committee, announced their intention to draft legislation based on the administration's proposal. Industry executives said Congress could complete action on legislation before leaving for recess in the fall. The Office of Federal Housing Enterprise Oversight, which is part of the Department of Housing and Urban Development, was created by Congress in 1992 after the bailout of the savings and loan industry and concerns about regulation of Fannie Mae and Freddie Mac, which buy mortgages from lenders and repackage them as securities or hold them in their own portfolios. At the time, the companies and their allies beat back efforts for tougher oversight by the Treasury Department, the Federal Deposit Insurance Corporation or the Federal Reserve. Supporters of the companies said efforts to regulate the lenders tightly under those agencies might diminish their ability to finance loans for lower-income families. This year, however, the chances of passing legislation to tighten the oversight are better than in the past. Reflecting the changing political climate, both Fannie Mae and its leading rivals applauded the administration's package. The support from Fannie Mae came after a round of discussions between it and the administration and assurances from the Treasury that it would not seek to change the company's mission. After those assurances, Franklin D Raines, Fannie Mae's chief executive, endorsed the shift of regulatory oversight to the Treasury Department, as well as other elements of the plan. The company opposes some smaller elements of the package, like one that eliminates the authority of the president to appoint 5 of the company's 18 board members. Company executives said that the company preferred having the president select some directors. The company is also likely to lobby against the efforts that give regulators too much authority to approve its products. Its yield fell to 4726 percent from 4835 percent on Tuesday. Fannie Mae, which was previously known as the Federal National Mortgage Association, and Freddie Mac, which was the Federal Home Loan Mortgage Corporation, have been criticized by rivals for exerting too much influence over their regulators. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing. |
| csua.org/u/mdd -> krugman.blogs.nytimes.com/2008/09/10/one-finger-salute/ krugman&posall=TopAd,Position1,Top5,SponLink,SFMiddle,Box1,Box3,Bo ttom3,Right5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9 ,Inv1,Inv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Top5&query=qstring&keywo rds=? on ideologues within the White House as well as Alan Greenspan, former chairman of the Federal Reserve. The critics have forgotten that the House passed a GSE reform bill in 2005 that could well have prevented the current crisis, says Mr Oxley, now vice-chairman of Nasdaq. "All the handwringing and bedwetting is going on without remembering how the House stepped up on this," he says. A potential crisis that was detected early but still allowed to become an actual disaster? A serious problem affecting the nation that was suborned to political considerations? Surely that's never happened on this administration's watch before. Sure the Dems from Clinton on have been complicit to a degree, but it is amazing how the White House has been unchallenged in claiming that Congress dropped the ball on reining in Fannie and Freddie without getting called on the carpet about how Bush and Snow and Greenspan scuttled every chance by regulators and legislators to get F/F to avoid the race to the bottom on bad mortgages. From Phil Gramm and Newt's Congress to the Alan and Hank show, this housing debacle was a full GOP production with just a few below the line credits from Democrats! Surely, the CEOs and other signatories to the financial statements knew of the rising risk, which should have been included in the discussion and analysis section. The fact that this article was published in a foreign newspaper AND has had no echo whatsoever in the US press should suffice to explain why a McCain victory in November is nothing short of inevitable. No amount of truth that may embarrass the Republicans shall find a critical eye, a drive to investigate in the mainstream media and given proper exposure, of course. Those who do not search (or can't search) for themselves are limited to deceptive, distorting and lying ads that are pure character assassination. We all know how unscrupulously good the Republicans are at it. Then, said voters will "decide" on feelings and impressions, bypassing any cortical function for which the human brain has evolved in the first place. A Republican that doesn't think that everything corporate being completely unregulated is good? As in nature, and in our own bodies, regulation and cooperation are far more important than unregulated greed and competition, if we want all to survive. Look at cancer - unregulated, greedy, multiplying beyond control - because the body doesn't check it like it should. That's how corporations and financial markets are, if not regulated. They become a cancer on our economy, sucking the life blood out greedily, killing it. Where can we find more of those, and how can we get them controlling the Republican party? In particular, the Office of Federal Housing Enterprise Oversight, which earlier in the year kept giving Fannie and Freddie more and more rope with which to hang themselves, is headed by a Bush appointee. That office, and the political processes which influence its decisions, should be given much more attention. Name Required E-mail Required (will not be published) Comment Submit Comment Comments are moderated and generally will be posted if they are on-topic and not abusive. krugman&posall=TopAd,Position1,Top5,SponLink,SFMiddle,Box1,Bo x3,Bottom3,Right5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom 8,Bottom9,Inv1,Inv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Position1&q uery=qstring&keywords=? krugman&posall=TopAd,Position1,Top5,SponLink,SFMiddle,Box1,Bo x3,Bottom3,Right5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom 8,Bottom9,Inv1,Inv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=SFMiddle&qu ery=qstring&keywords=? dealbook&posall=Top5,Box3,SponLink,SFMiddle,Right,Bottom3,Rig ht5A,Right6A,Right7A,Right8A,Middle1B,Bottom7,Bottom8,Bottom9,Inv1 ,Inv2,Inv3&pos=Box3&query=qstring&keywords=? Liquidity trap Hitting bottom Marketwatch: Rates on three-month bills, among the most popular assets for investors seeking higher quality, plunged to 006%, the lowest on record. Titanic events in the market A sinking feeling A thought I had today: as I understand it, when the Titanic hit that iceberg, at first the crew didn't think it was so bad. The ship's hull was divided into watertight compartments, and not enough of them had been ripped open to sink the ship. I'm gathering, from my reading here and there, that most people don't know that Herbert Hoover famously declared that the "fundamental business of the country" was sound. Worse than ever The trend is not good Fourteen months into the crisis, our situation does not seem to be improving. when it goes way down, that's showing a flight to safety. krugman&posall=TopAd,Position1,Top5,SponLink,SFMiddle,Box1,Bo x3,Bottom3,Right5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom 8,Bottom9,Inv1,Inv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Box1&query= qstring&keywords=? krugman&posall=Top5,TopAd,Position1,SFMiddle,SponLink,Box1,Bo x3,Bottom3,Right5A,Right6A,Right7A,Right8A,Middle1C,tacoda,SOS,Bot tom7,Bottom8,Bottom9,Inv1,Inv2,Inv3&pos=SponLink&query=qstring&key words=? krugman&posall=TopAd,Position1,Top5,SFMiddle,Box1,Box3,Bottom3,R ight5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9,Inv1,I nv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Bottom7&query=qstring&keywords= ? krugman&posall=TopAd,Position1,Top5,SFMiddle,Box1,Box3,Bottom3,R ight5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9,Inv1,I nv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Bottom8&query=qstring&keywords= ? krugman&posall=TopAd,Position1,Top5,SFMiddle,Box1,Box3,Bottom3,R ight5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9,Inv1,I nv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Bottom9&query=qstring&keywords= ? krugman&posall=TopAd,Position1,Top5,SFMiddle,Box1,Box3,Bottom3,R ight5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9,Inv1,I nv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Inv1&query=qstring&keywords=? krugman&posall=TopAd,Position1,Top5,SFMiddle,Box1,Box3,Bottom3,R ight5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9,Inv1,I nv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Inv2&query=qstring&keywords=? krugman&posall=TopAd,Position1,Top5,SFMiddle,Box1,Box3,Bottom3,R ight5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9,Inv1,I nv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=Inv3&query=qstring&keywords=? krugman&posall=TopAd,Position1,Top5,SFMiddle,Box1,Box3,Bottom3,R ight5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9,Inv1,I nv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=tacoda&query=qstring&keywords=? krugman&posall=TopAd,Position1,Top5,SFMiddle,Box1,Box3,Bottom3,R ight5A,Right6A,Right7A,Right8A,Middle1C,Bottom7,Bottom8,Bottom9,Inv1,I nv2,Inv3,tacoda,SOS,ADX_CLIENTSIDE&pos=SOS&query=qstring&keywords=? |
| csua.org/u/me8 -> www.govtrack.us/congress/record.xpd?id=109-s20060525-16&bill=s109-190#sMonofilemx003Ammx002Fmmx002Fmmx002Fmhomemx002Fmgovtrackmx002Fmdatamx002Fmusmx002Fm109mx002Fmcrmx002Fms20060525-16.xmlElementm0m0m0m "ordered to be reported with an amendment in the nature of a substitute favorably" means! Help The Congressional Record is the official journal of Congress's daily proceedings. Though often a transcript of the debates on the House and Senate floors, like C-SPAN transcripts, the Congressional Record can be significantly modified by Members of Congress after the fact. Entries in the Congressional Record can reflect the edited, prepared versions of statements actually made on the floor, and on very rare occasions can contain seeming entire debates between Members of Congress that never took place. Only floor proceedings are a part of the Record, and so committee meetings are not available this way. The Office of Federal Housing Enterprise Oversight's report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae's former chief executive officer, OFHEO's report shows that over half of Mr Raines' compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator's examination of the company's accounting problems. These are entities that have demonstrated over and over again that they are deeply in need of reform. For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac--known as Government-sponsored entities or GSEs--and the sheer magnitude of these companies and the role they play in the housing market. OFHEO's report this week does nothing to ease these concerns. OFHEO's report solidifies my view that the GSEs need to be reformed without delay. Ordered to be reported with an amendment in the nature of a substitute favorably. Status: Dead 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. I urge my colleagues to support swift action on this GSE reform legislation. us is not affiliated with the US government or any other group. |