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Barney Frank, "What me worry?"

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Elliott

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Today's WSJ Opinion Page,

Taxpayers are now on the hook for as much as $200 billion to rescue Fannie Mae and Freddie Mac, and if you want to know why, look no further than the rapid response to this bailout from House baron Barney Frank. Asked about Treasury's modest bailout condition that the companies reduce the size of their high-risk mortgage-backed securities (MBS) portfolios starting in 2010, Mr. Frank was quoted on Monday as saying, "Good luck on that," and that it would never happen.

There you have the Fannie Mae problem in profile. Mr. Frank wants you to pick up the tab for its failures, while he still vows to block a reform that might prevent the same disaster from happening again. At least the Massachusetts Democrat is consistent. His record is close to perfect as a stalwart opponent of reforming the two companies, going back more than a decade. The first concerted push to rein in Fan and Fred in Congress came as far back as 1992, and Mr. Frank was right there, standing athwart. But things really picked up this decade, and Barney was there at every turn. Let's roll the audiotape:

In 2000, then-Rep. Richard Baker proposed a bill to reform Fannie and Freddie's oversight. Mr. Frank dismissed the idea, saying concerns about the two were "overblown" and that there was "no federal liability there whatsoever." Two years later, Mr. Frank was at it again. "I do not regard Fannie Mae and Freddie Mac as problems," he said in response to another reform push. And then: "I regard them as great assets." Great or not, we'll give Mr. Frank this: Their assets are now Uncle Sam's assets, even if those come along with $5.4 trillion in debt and other liabilities.
Again in June 2003, the favorite of the Beltway press corps assured the public that "there is no federal guarantee" of Fan and Fred obligations
A month later, Freddie Mac's multibillion-dollar accounting scandal broke into the open. But Mr. Frank was sanguine. "I do not think we are facing any kind of a crisis," he said at the time.

http://online.wsj.com/article/SB122091796187012529.html?mod=opinion_main_review_and_outlooks
 

Terrel L. Shields

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I knew he reminded me of someone.
 
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Apparently, Barney would rather be a "pitcher" than a "catcher". He's left the catching up to the taxpayer. (Oh, did I hear correctly, the severance package for one of the Fannie or Freddie ex-chiefs was 9 million dollars?.....get fired and get 9 million)
 

Jan Roseberry

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Elliott - - -

your bug is driving me batty!
 

Elliott

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Oregon
What bug???
 

Green Hornet

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I almost put my finger throught the screen trying to smash it.
 

Caterina Platt

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This Fed takeover is only going to work if there are sweeping reforms to Fannie and Freddie.

I think the takeover was necessary, but it's time to clean house and start fresh.
 

airphoto

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And the first answer is "no loans to people without downpayments and without income!!"
 

RSW

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You mean that bug is not real. I've been trying to kill it all morning.
 
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I kinda remember something about Richard Baker's proposals to reform FNMA and FHLMC. Does anyone know of a source where those proposales could be reviewed?.
 
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