The right would love for you to believe Barney Frank started this economic mess all by his lonesome but I did not find evidence to support that. To be fair, it seems I was wrong for blaming Phil Gramm. I blamed Mr. Gramm because he was the principal author of the Gramm-Leach-Bailey bill, which repealed the Glass-Stegal Act. The Glass-Stegal Act did not permit a commercial bank to become an investment bank. The bill Phil Gramm authored, passed a democrat controlled, house. Later I will list why this article did not list deregulation as a culprit.
Although Barney Frank opposed Fannie & Freddie deregulation and he stated it was doing fine, when it really wasn't, he was not really in a position to stop legislation concerning Fannie and Freddy. I am still researching Mr. Frank's culpability in the housing crisis. He did not make this report or the Time magazine list of the 25, as being one of the culprits in this financial mess. I know about the love connection and the $42,000 in donations over 19 years but that is hardly an indictment. Please; if you have a legitimate source, please provide me with a link.
The Democrats opposed the Federal Housing Enterprise Regulatory Reform Act of 2005. This legislation would have authorized a single independent regulatory body with jurisdiction over Fannie and Freddy. It seems to me the GOP did not mind controlling Fannie and Freddy but they overlooked the rest of Wall Street. This bill never made it out of committee nor did the GOP Senate bring it up for a vote. The parties seem to cancel one another on oversight and responsibility. Barney Frank did oppose this bill when Bill Clinton was still in office.
Plenty of blame to go around was the final analysis.
Time listed Phil Gramm on their top 25 list and Frank Rains was also listed.
This is Factcheck's top 10.
1) The Federal Reserve for slashing interest rates making credit cheap.
2) Home buyers who took advantage of the cheap credit to bid up the price excessively.
3) Congress because they continue to support the mortgage interest deduction (tax incentive to buy the more expensive homes)
3) Real Estate agents who worked for the sellers rather than the buyer for the higher commission.
4) The Clinton Administration because they pushed for less stringent credit and down payment requirements for the working poor and the middle-class.
5) Mortgage brokers who dealt in the predatory loans (subprime).
6) Alan Greenspan for encouraging Americans to take out adjustable mortgages.
7) Wall Street Firms who bundled the Mortgage Backed securities (MBS) and issued bonds using these securities as collateral.
8) The Bush Administration for lack of oversight
9) Using mark-market which had the effect of making the assets less on paper, than in the real market.
10) The country as a whole, thought this balloon would never burst, no matter how high it went or how fast.
As I continue to try and find answers I came across a Barney Frank and Maxine Waters connection to a bank that got bailout money,but the evidence is sketcy..I found this article in the USA Today.
WASHINGTON — As Congress began considering a financial industry rescue plan last fall, Rep. Jean Schmidt called the House ethics committee staff with a question: Did she have to sit out any votes on the package because her husband is a Smith Barney financial adviser
I believe Rep. Cantor also has a connection...Don't you think we need a fact finding commission?
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