Hypocrisy on the March!

Wednesday the House passed "sweeping" reform of the financial industry regulation (HR 4173). Barney Frank said, "I disagree vehemently that the American people think that the status quo with the financial industry was a good one."
Here he is bloviating (along with Republicans criticizing):


Too bad Frank and the Democrats blocked regulation back in 2004 before the financial meltdown that has led to the worst economy since the Great Depression. Of course in 2004 they weren't in power and were trying to stop anything the Republicans were doing, from legislation to federal judges.

Here is a video of Democrats criticizing attempts to regulate Freddie and Fannie. Look for these gems:

• 0:50 - Maxine Waters says the Republicans are trying to fix something that isn't broken, and that there is no crisis with Freddy Mac and Fannie Mae.
• 1:30 - Gregory Meeks says "There has been nothing indicating there is anything wrong."
• 5:04 - Barney Frank says there is nothing wrong.
• 5:30 - Maxine Waters says Congress should not block Freddy and Fannie from giving out more zero down (risky subprime) loans.
• 6:15 - Frnak says concern over Freddy and Fannie is a shibboleth, and sees "no issue" with them."
• 7:50 - Frank Raines says the loans Freddy is making are "riskless."

The Republicans want these amendments to HR 4173:

• Phases out taxpayer subsidies of Fannie Mae and Freddie Mac and privatizes the entities over a number of years.
• Sunsets the current conservatorships and places both institutions in receivership if they are not financially viable.
• If they are viable, requires wind down of agencies if their charters are not renewed in three years.
• Requires reductions in the portfolios of the two companies, emphasizes the promotion of housing affordability, and requires SEC registration as well as reverses all tax exemptions.
• Lowers conforming loan limit in high cost areas and prohibits GSEs from buying any loan that is above the area median home price in its area - effectively lowering conforming loan limits in much of the country.

The House Financial Services Committee (chaired by Barney Frank) put out this response about the Republican attempts to regulate Freddie Fannie through ammendments to HR 4173. Keep in mind what the Democrats said and did in 2004 while reading this (I bolded the great parts):

Let’s review the pitiful record of Republicans and the GSE [Government Sponsored Enterprises]. First they ignored the problem for years, having never passed reform legislation for the first 10 years (1995-2005) of Republican rule in the House of Representatives. Second, the only Republican reform bill to ever get a vote in Congress was opposed by a Republican President. Third, President Bush, over the objections of House Democrats, pushed Fannie and Freddie into riskier and riskier mortgages with a philosophy of homeownership at any cost. And finally, President Bush bails them out. When Democrats took over in 2007, Barney Frank worked with the Bush Administration and over the objections of most Republicans in the House passed Fannie and Freddie reform within 5 months of taking over the majority. The only Fannie and Freddie reform bill signed by President Bush was authored by Barney Frank and Chris Dodd. Republicans want you to believe that they are serious about the problems associated with Fannie and Freddie, but it is smoke and mirrors. House Democrats are committed to addressing the Fannie and Freddie issues with substantive, thoughtful reform when Congress convenes next year.

Republicans "ignored" the problems? In 2003 the Bush administration and Congress tried to pass legislation that would have regulated the risks Fannie and Freddie were taking on. They were worried that the two corporations were becoming too big too fast and were headed toward financial problems. Democrats blocked this legislation.

In September 2003, the illustrious Barney Frank said,"These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

The "reform" Frank takes credit for in 2007? Increasing Freddie and Fannie's involvement in the mortgage market and raising the limit of the mortgages they could finance.

Hypocrisy on the March!