"If effective regulatory reform legislation ... is not enacted this year, 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," the senators wrote in a letter that proved prescient. Full Story »
Posted by Chris Finnie
A well documented and damning investigative report. Showcases the impotence and unwillingness of Democrats and Republicans to thwart attempts by Freddie Mac and Fannie Mae to kill legislation that would have regulated them and potentially staved off their collapse this fall. Anonymous sources -- the expected bane of any story like this -- are abundant and barely attributed, but the AP appears to have gone to great lengths to confirm and elaborate on the information they provided. Research is thorough, especially in tracing the fate of Chuck Hagel's bill to regulate Fannie Mae and Freddie Mac. Very revealing. I'm amazed that only one reporter is tagged in this story.
This is an in-depth look at how Freddie Mac fought legislation that would have imposed stronger regulation on this failed mortgage company. Gives the reader an excellent window into how money can influence the creation of new laws. It's very detailed and even-handed in its approach, though I agree with Mike LaBonte that the presidential election connect is tangential and distracting.
Anonymous sources and a penchant for tying this story to presidential candidates harm it's credibility. The complicated series of facts and statements is not always easy to follow. The core story is important, however, and I hope to see more transparent reporting on this.
This is another report on the tortured recent history of Freddie Mac and Fannie Mae -- Democrats lining up to protect loans to low and moderate income families, Republicans fighting with Republicans over regulation and a changing of the political orientation of Freddie Mac management. This report has many sources but almost all of them anonymous (for fear of retribution?). Moreover, the writing does little to make this confusing situation clearer. Nevertheless, this report is valuable in disclosing yet another facet of the mess we're in.
Neither political party comes off looking particularly good with regard to Fannie Mae and Freddie Mac. Democrats let their championing of moderate and low income borrowers cloud their view while the go-go and the fiscally responsible wings of the Republican party (not as concerned about the plight of the borrowers)fought with each other. In spite of the mess at the two government chartered companies, analysis of borrowing shows that the two companies played a minor role in the ... More »
The article emphasizes the impropriety of a GSE paying big money to lobby congress in opposition to being regulated. Most of the money went to lobbying and supporting Republicans, but the dems are shown culpable of opposing the regulation. There is no complete explanation of why the congress critters claim to have opposed the regulation. There is no thorough examination of political contributions to all the opponents on both sides of the aisle.
Many years ago, President Eisenhower warned the nation against the corporate money that threatened to "sink the ship of state." This is as good an example as any of exactly what he meant. Well-researched and documented, this shows how the lure of corporate dollars kept the Senate from acting when they saw the seeds of the housing meltdown years ago. Sobering and scary.
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