Democrats refuse to talk about Fannie, Freddie in Oversight hearing
posted at 11:22 am on October 7, 2008 by Ed Morrissey
Share on Facebook | printer-friendly
Democrats have begun a search for the culprit in the financial collapse in a manner somewhat akin to the OJ Simpson search for Nicole Brown and Ron Goldman’s murderer. The Hill reports that Henry Waxman’s Oversight Committee hearing grilled Lehman Brothers executives over CEO pay and “deregulation”, but never mentioned the names Fannie Mae and Freddie Mac. Republicans found that more than a little strange:
Democrats aimed their harshest attacks at deregulation and CEO pay, using former Lehman Chairman and Chief Executive Officer Richard Fuld as an example during a recess hearing of the House Oversight and Government Reform Committee.
Chairman Henry Waxman (D-Calif.) also released internal documents showing Lehman’s compensation committee recommended $20 million in “special payments” to three departing executives on Sept. 11, four days before the firm filed for bankruptcy.
Republicans, for their part, launched a campaign to pin the financial meltdown on Fannie Mae and Freddie Mac, and attacked Waxman for not holding a hearing to dig into the now-nationalized mortgage giants.
“Any hearing on oversight that does not begin with Fannie and Freddie and [former Fannie Mae CEO] Franklin Raines will be a sham,” said Rep. John Mica (R-Fla.). “This is like investigating a train robbery and only talking to the dining car stewards.”
Christopher Shays ripped the Oversight Committee for its refusal to investigate Congress itself:
“The reason we haven’t scheduled hearings on these two institutions and haven’t requested documents from either is because their demise isn’t someone else’s fault — it’s ours, and we don’t want to own up to it.”
Shays then destroys the notion that Congress got caught unaware by the collapse of Fannie Mae and Freddie Mac. He requests the records of many hearings held over the last six years on this very topic, including a Bush administration effort to overhaul GSE regulation in 2003. The list of hearings demonstrates Congressional culpability in the Fannie and Freddie collapse, and as Shays notes, provides the reason why Waxman has kept the actual proximate cause of the financial crisis out of the hearings that are supposed to investigate the reasons why American taxpayers have to bail out Wall Street.
Note that Waxman wants to save “taxpayer money” by keeping those records out of the committee hearing, instead providing links to the records for those who want to pursue the trail of bread crumbs highlighted by Shays. Too bad Congressional Democrats didn’t have more concern for our money when they blocked tougher rules for Freddie Mac and Fannie Mae and accused OFHEO regulators of being racists for doing their jobs. That was their excuse the last time Congress got pressed to take some responsibility for overseeing the GSEs, and to no one’s great surprise, that’s their reaction this time as well.
You must be logged in to post a comment.
Blowback
Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.
Trackbacks/Pings
Trackback URL
Comments
Comment pages: « Previous 1 2
Mike Volpe,
So, who are voting for?
Star20 on October 7, 2008 at 1:25 PM
Waxman:
Our staff is now
looking intoshredding the documents relating to themTheSitRep on October 7, 2008 at 1:27 PM
Everyone has been told that a part of last week’s “Bailout” was that there would be strong “oversight”.
Here we are seeing an example of that oversight. It’s not oversight but quite the opposite…the suppression of the facts and the avoidance of real oversight.
As the evidence shows, when regulators and Republicans tried to exercise oversight they were castigated and insulted by the likes of Barney Franks and Maxine Waters. People like Raines were able to rape the system with impunity because the fact that their skin colour (which I never even knew until just recently) allowed their critics to be called “racist”.
What assurance is there that the new “oversight” provided for in the most recent bailout will be any different than that which went before?
Blaise on October 7, 2008 at 1:28 PM
Where are all the Republican committee members? Mica and Shays need support in this. Waxman is just giving them lip service. He is saying one thing and doing another while manipulating committee rules to stifle the truth. Upon Waxman noting the lack of a Republican presence at todays hearings Mica’s reply was “If they can’t be heard then why the hell should they show up!” We need to find out the republican members who did not show up and light a fire under their asses. Mica slapping the dais top was nice as if to say enough is enough. Waxman reneged on the rest of Shay’s aloted time after that.
sonnyspats1 on October 7, 2008 at 1:35 PM
What I find most “fascinating” in your commentary and defense of the GSEs is that you never seem to find fault with the relationship they had with their regulators (i.e. Congress).
highhopes on October 7, 2008 at 1:49 PM
This is what aggravates me about my representative Shays. He is a RINO, but then pulls stuff like this out of his butt that are laudable. As far as I can tell, his good points seem to be his lack of corruption & minimal earmarks.
clancy_wiggum on October 7, 2008 at 1:51 PM
I would love to hear McCain come out and say…
If I am elected President, I promise you, the American people, that I will use the full force of my office to investigate, indict and convict those who knowingly compelled and allowed the most recent financial collapse… no matter whether they were CEO, Democrat or Republican.
dominigan on October 7, 2008 at 2:00 PM
Thank You for showing the all important history of the Repuplican attempt to reign in Fanny and Freddy. It should also be noted that Waxman showed his biggest trump card so early in the game, in that he all but dared Mica to try and expose the Dems corruption in this stating that congress was controlled for 12 years by the republicans and only since 2006 by the Dems. While Mr. Waxman is correct in his assesment that ‘truth is a two edged sword’ and cuts both ways in this case it will clearly show that the Dems voted almost if not completely unanimous to block any attempts to correct the loopholes in Fanny and Freddy to stop the bleeding. I wonder if all that money just waiting to be stolen had anything to do with the MSM and why Mark Foley was on the front page for so long in 2006. Macaca indeed! Note to missing Republican committee members: Man up and buck the the fuck up now is time to KICK ASS AND TAKE NAMES ha ha you can always plead the fifth.
sonnyspats1 on October 7, 2008 at 2:02 PM
accessment (sp) never ass-u-me ha ha
sonnyspats1 on October 7, 2008 at 2:04 PM
well Duh! LOL
sonnyspats1 on October 7, 2008 at 2:06 PM
This tees up the ball perfectly for McCain in tonight’s debate. If he’s paying attention, he should announce that he will launch a special Justice Department investigation of Fannie, Freddie and any other entities involved in the sub-prime mess. He might even consider a “911 Commission”-like investigation (though that panel became outrageously partisan).
If McCain doesn’t play this card, we all lose. The government will have free rein in the economy for the next 30 years….if we last that long.
jeanneb on October 7, 2008 at 4:07 PM
I honestly wish the GOP would drop THIS name in the Lehman hearings
William Amos on October 7, 2008 at 4:40 PM
I honestly wish the GOP would drop THIS name in the Lehman hearings
William Amos on October 7, 2008 at 4:40 PM
I can smell fear thru this vid.
I can hear teeth grinding in this vid.
I smell the sweat of cowards in this vid.
And they all smell like the left.
madmonkphotog on October 7, 2008 at 4:54 PM
When will U.S. citizens start marching on Washington and demanding those Congressmen involved in this financial collapse be recalled or impeached?
They have done more to harm the US economy then Bin Laden and al Queda.
albill on October 7, 2008 at 4:54 PM
To: Anyone in political office.
You are either with us, or you are with the people who just broke our financial system. You can run, but you can’t hide. Turn states evidence and help us nail the bastards that caused this, or we will be coming after you.
You decide.
Highest Regards
Star20 on October 7, 2008 at 4:59 PM
I’ve got my pitchfork, do you?
Fuquay Steve on October 7, 2008 at 5:05 PM
“When will U.S. citizens start marching on Washington and demanding those Congressmen involved in this financial collapse be recalled or impeached?”
albill on October 7, 2008
You just let me know the time and place and I’ll be there!
It seems that Americans, just having had their republic ripped from their hands and robbed by their leaders, are willing to do little other than bitch. all the while the perps sit there in plain sight denying the fcts and sneering at those they have just wronged. I never thought our country would go down like this…without a fight.
there was no question that something like 75% of voters was against the welfare handout that our leaders voted to approve anyway.
THERE NEEDS TO BE SEVERE CONSEQUENCES…NO MERCY!
Goodeye_Closed on October 7, 2008 at 5:22 PM
I think the Democrats most certainly will blame the Republicans who were in the majority for years..what else can they do? But it still does not look good for the Democrats. Saying the other guy did not stop you is not much of a defense.
Terrye on October 7, 2008 at 5:44 PM
Hopefully, just the beginning. Thank you Rep. Shays.
oakpack on October 7, 2008 at 5:57 PM
Remember the good old days when democrats were held accountable for things like purposely overdrawing their bank accounts?
They’ve come a long way, baby.
Dorvillian on October 7, 2008 at 6:49 PM
This just a show trial.To show how much the Dems realey care about all the little people.After all in america everbody must have a house no matter who has to pay for it.Remember Obama and his leagions in congress will take from those bad rich people that work 55 to 60 hours a week and give to the people who just don,t have a chance in this realey mean country.
thmcbb on October 7, 2008 at 6:53 PM
I can tell you what is obscenely wrong Mike. When I got my first mortgage on my house I ended up with one of the sub-prime mortgages. I tried to refinance after a few years in order to get a fixed rate. When I walked into closing they gave me another sub-prime mortgage when I SPECIFICALLY told them I wanted a conventional fixed rate mortgage.
I have discovered since that many mortgage companies were operating as brokers and did not keep the mortgage themselves. They made the money on writing the loan. Then they sold the liability to somebody else. These brokers kept their own pockets being lined by writing mortgages that needed to be refinanced every few years. It was a way to create their own market.
I had no choice but to take the mortgage because the lender refused to rewrite it as anything else. They informed me that I would have to pay nearly $1000 in fees in order to get a different loan if I refused that one. I just didn’t have the money to do the mortgage over. I know three other people that had similar things happen to them.
Frankly, I am sickened by the mortgage lenders trying to point the finger at the buyers all the time. It is YOUR responsibility to perform due diligence on the mortgage and refuse to lend the money unless the buyer is solvent and can make payments. You guys are supposed to be the experts that we pay in order to avoid this garbage and you did not do your jobs. You guys just went for the bucks, even when you KNEW you were screwing your customer.
Hawthorne on October 7, 2008 at 6:56 PM
Your tax $$$$ at work!
AIG execs’ retreat after bailout angers lawmakers
WASHINGTON (AP) — Less than a week after the federal government had to bail out American International Group Inc., the company sent executives on a $440,000 retreat to a posh California resort, lawmakers investigating the company’s meltdown said Tuesday.
Bicyea on October 7, 2008 at 8:40 PM
Shays followed up with another home run today during the hearing on AIG. He really slams Raines. Calls Fannie & Freddie the “Toxic Twins” and “We can’t wait until Halloween to unmask these monsters.”:
Skip ahead to around 00:16 if this link doesn’t do so automatically.
TheBigOldDog on October 7, 2008 at 9:42 PM
Investigate Waxman…
eanax on October 7, 2008 at 9:44 PM
You rock, OP!
eanax on October 7, 2008 at 9:44 PM
The Repub Party better start growing a pair because their days are numbered if they don’t get their a$$es in gear and start attacking thoroughly and effectively…
eanax on October 7, 2008 at 9:48 PM
The Daily Beast naming the Fannie Mae And Freddie Mac Enablers. There is a long list this is a little more en depth but nothing really new. Some Blaming the regulators for wanting really tight regulations. Damn those Republicans.
http://www.thedailybeast.com/blogs-and-stories/2008-10-07/the-enablers/
Dr Evil on October 7, 2008 at 10:30 PM
Of course the RATS don’t want to discuss it. It’s never going to get fixed either. They don’t want their Fatty Mae, and Freddie McDaddy cash cows to disappear.
byteshredder on October 7, 2008 at 11:41 PM
As I now understand this provision, whenever anything new blows up or collapses, Congress has agreed to say in unison “Oh, that was just an oversight!!”
The fox is loose in the chicken coop. Until we see the Fannie Mae/Freddie Mack crooks who cooked the books to make their own bonus checks larger in jail, including as a minimum Raines and Jamie Garelick, and until we see the actual start of impeachment hearings for Chris Dodd, Barney Fran, and Barack Obama who worked hard to hide their scheme to force banks to make bad loans and make Fannie Mae/Freddie Mack into huge piggy banks for their own benefit, nothing useful will happen…no matter how much “Bailout” cash is pumped into this sewer.
landlines on October 7, 2008 at 11:58 PM
No. I have something they fear more: my vote.
Back here in MN, Coleman voted for the bailout as did my Congressman John Kline.
I’m looking for alternative candidates.
Amendment X on October 8, 2008 at 10:30 AM
and throw ever one of their asses out of office then.
People had better rise up or its 1992 all over again, then 4 or 8 years of hell.
johnnyU on October 8, 2008 at 10:52 AM
I’m with Fuquay Steve!
It makes me sick when the say the last 8 years of bad economic policies. Well the first 6 years the economy was going through the roof.
When the left realized that, since the Irag war would not be an issue, they would need to tank the economy to get Barry elected.
I believe this was all concocted by Nancy, Harry, and several others (Frank, Todd,…).
elifino on October 9, 2008 at 3:46 AM
The twilight of our republic is no time to be politically correct and try not to offend your freinds in the green room, Ed.
peacenprosperity on October 9, 2008 at 5:26 AM
They have no fear. That’s anticipation you sense, the anticipation of crushing us under their steel toed boots starting in January.
peacenprosperity on October 9, 2008 at 6:59 AM
Comment pages: « Previous 1 2