Wind Down Freddie and Fannie? Whoa! Not So Fast - GOP

[8537]

He resisted every effort to reform them while it would have mattered.

He wasn't even in the majority on the committee that mattered...when it mattered. He and the Dems weren't able to prevent the Republicans from getting anything out of committee...

Yet, did anything proposing to reform or abolish FM get out of the Republican-majority committee?

Hint: The answer is "no".

You mean the ones who got thrown out of office?

indeed, many of the Republicans on that committee got thrown out of office.

 

[The T]

They should start by prosecuting Chris Dodd and Barney Frank

Barney Frank, who proposed disbanding them?

The one that said there was nothing wrong.

 

[8537]

So which party is the good-guys and which party are the bad-guys again, I keep getting confused??

In terms of the economic crisis? They both bear some blame, but mainly the quants are to blame.

Because Dodd-Franks passed on reining Fannie and Freddie in?

No - No amount of "reigning in Fannie and Freddie" would do anything to prevent the economic crisis we're currently in, for two reasons:

1. Dodd-Frank was years after the problem started.
2. Fannie and Freddie weren't the origin of the problem, like so many other financial institutions they were simply a (large) casualty of it.

 

[8537]

They should start by prosecuting Chris Dodd and Barney Frank

Barney Frank, who proposed disbanding them?

The one that said there was nothing wrong.

That's what the heads of AIG, Bear, Lehman, WaMu, Fifth-Third etc...said as well.

 

[kyzr]

I thought that Fannie and Freddie were democrat cash-cows based on their donation records. Then when the GOP has a shot to clean the messes up, they don't?!
Must be wayyyy too much money at stake to actually do what you promised.

 

[Revere]

In terms of the economic crisis? They both bear some blame, but mainly the quants are to blame.

Because Dodd-Franks passed on reining Fannie and Freddie in?

No - No amount of "reigning in Fannie and Freddie" would do anything to prevent the economic crisis we're currently in, for two reasons:

1. Dodd-Frank was years after the problem started.
2. Fannie and Freddie weren't the origin of the problem, like so many other financial institutions they were simply a (large) casualty of it.

Yeah, they were. All loan underwriting rules are made there.

[ame]http://www.youtube.com/watch?v=y4A0RuXhnQA[/ame]

Pay attention to the part where Maxine Waters mentions "desktop underwriting."

That's Fannie and Freddie.

 

[8537]

Because Dodd-Franks passed on reining Fannie and Freddie in?

No - No amount of "reigning in Fannie and Freddie" would do anything to prevent the economic crisis we're currently in, for two reasons:

1. Dodd-Frank was years after the problem started.
2. Fannie and Freddie weren't the origin of the problem, like so many other financial institutions they were simply a (large) casualty of it.

Yeah, they were. All loan underwriting rules are made there.

[ame]http://www.youtube.com/watch?v=y4A0RuXhnQA[/ame]

Pay attention to the part where Maxine Waters mentions "desktop underwriting."

That's Fannie and Freddie.

no, that is simply wrong. All underwriting rules for:

1. Loans purchased by FM and FM and...
2. Loans held at depository institutions

must follow underwriting rules of the government. That accounts for about 20% of the subprime market, which FM and FM were dramatically pushed out of during the 2000's.

 

[The T]

He wasn't even in the majority on the committee that mattered...when it mattered. He and the Dems weren't able to prevent the Republicans from getting anything out of committee...

Yet, did anything proposing to reform or abolish FM get out of the Republican-majority committee?

Hint: The answer is "no".

You mean the ones who got thrown out of office?

indeed, many of the Republicans on that committee got thrown out of office.

And a coward Chris (CountryWide) Dodd decided not to run for re-election...

You may dispense with your partisan horseshit.

 

[8537]

You mean the ones who got thrown out of office?

indeed, many of the Republicans on that committee got thrown out of office.

And a coward Chris (CountryWide) Dodd decided not to run for re-election...

You may dispense with your partisan horseshit.

Yes, Dodd decided not to run for re-election. Now what exactly are you drunk-ranting about?

 

[Cuyo]

No - No amount of "reigning in Fannie and Freddie" would do anything to prevent the economic crisis we're currently in, for two reasons:

1. Dodd-Frank was years after the problem started.
2. Fannie and Freddie weren't the origin of the problem, like so many other financial institutions they were simply a (large) casualty of it.

Yeah, they were. All loan underwriting rules are made there.

[ame]http://www.youtube.com/watch?v=y4A0RuXhnQA[/ame]

Pay attention to the part where Maxine Waters mentions "desktop underwriting."

That's Fannie and Freddie.

no, that is simply wrong. All underwriting rules for:

1. Loans purchased by FM and FM and...
2. Loans held at depository institutions

must follow underwriting rules of the government. That accounts for about 20% of the subprime market, which FM and FM were dramatically pushed out of during the 2000's.

The bad loans were overwhelmingly made by private entities that were never regulated in the first place.

Any such collapse spurs a hunt for villains, but the truth is that this was a perfect storm. The government's only failing was not identifying and correcting it sooner.

 

[Oddball]

Banks and mortgage lenders like Countrywide weren't regulated?

I'm sure that's news to Angelo Mozilo, who doled out all sorts of sweetheart mortgages to turds like Chris Dodd.

 

[8537]

Banks and mortgage lenders like Countrywide weren't regulated?

I'm sure that's news to Angelo Mozilo, who doled out all sorts of sweetheart mortgages to turds like Chris Dodd.

Part of Countrywide was under FDIC regulation as a depository institution.

Part of it was not.

 

[Oddball]

And it was regulated, contrary to popular myth.

Of course, regulations don't mean jack when you're buying off those who would be regulating you.

 

[uscitizen]

Fannie and Freddie should never be allowed to buy another residential mortgage again on pain of death.

You knew that the GSE's now control 100% of the mortgage market, right? That's up from 40% precrash.

You knew that right?

To take Fannie and Freddie out back to be shot, as they should, would severely disrupt the already fucked up economy.

Yep killing Fannnie or Freddie would drop housing prices another 25-30%.

Kill em, we need cheaper houses?

 

[8537]

And it was regulated, contrary to popular myth.

Of course, regulations don't mean jack when you're buying off those who would be regulating you.

The nondepository side of Countrywide was not regulated by FM, the FDIC or any other agency responsible for protecting the interests of clients.

They were, of course, regulated by the SEC as an investment institution. But the SEC has no authority to impact Countrywide lending standards.

 

[uscitizen]

Big money industry makes big bucks off of Fannie/Freddie no way the Republicans will kill them.
It was all just talk to get control of the house.
Republicans sound good in talk, but cannot walk the walk worth crap.
Of course this is not limited to just republicans.

 

[Cuyo]

Banks and mortgage lenders like Countrywide weren't regulated?

I'm sure that's news to Angelo Mozilo, who doled out all sorts of sweetheart mortgages to turds like Chris Dodd.

Part of Countrywide was under FDIC regulation as a depository institution.

Part of it was not.

I wasn't aware Countrywide ever was a depository bank. Learn somethin' new every day.

 

[Revere]

And it was regulated, contrary to popular myth.

Of course, regulations don't mean jack when you're buying off those who would be regulating you.

The nondepository side of Countrywide was not regulated by FM, the FDIC or any other agency responsible for protecting the interests of clients.

They were, of course, regulated by the SEC as an investment institution. But the SEC has no authority to impact Countrywide lending standards.

They didn't need to. The Fed was demanding Countrywide make loans to people who could not pay and comply with provisions of the CRA.

 

[whitehall]

What does it take for Americans to understand that congress has mismanaged Fannie to a criminal degree? The Fannie board of directors ware appointed not for their experience in the mortage industry but for their political affiliation. Look them up. The Fannie CEO's lavish yearly bonuses were tied to Fannie making a profit so he allegedly cooked the books to show a fake profit while Fannie was dying. Frank Raines walked away with 90 Million in bonus money for three years work. The democrat in charge of the bankinbg committee said that he allowed Fannie to collapse because of "ideological blinders". The first thing republicans need to do when they gain the congressional majority on the 6th of January is to investigate the corruption thet led to Fannie Mae's collapse.

 

[Cuyo]

And it was regulated, contrary to popular myth.

Of course, regulations don't mean jack when you're buying off those who would be regulating you.

The nondepository side of Countrywide was not regulated by FM, the FDIC or any other agency responsible for protecting the interests of clients.

They were, of course, regulated by the SEC as an investment institution. But the SEC has no authority to impact Countrywide lending standards.

They didn't need to. The Fed was demanding Countrywide make loans to people who could not pay and comply with provisions of the CRA.

No, dingus. The CRA also applies to depository institutions only.