Re: “Voters are to blame” (Letters, Dec. 26): “Additional pressure from the Bush administration upon Freddie Mac and Fannie Mae to increase their funding of mortgage loans to lower income groups led to the sub-prime loans.” Totally false.
2001: President Bush, in his budget message, warned there was potential for massive losses by the two.
2003: Bush again warned of danger in the subprime markets, but further said: “Broad systemic damage could result to the financial system.”
2003: President Bush pushed Congress to create a regulatory agency to oversee Fannie and Freddie.
2003: Democrat Barney Frank, House Finance Committee, said: “Fannie and Freddie are not in financial crises” and “We see entities that are fundamentally sound.” He blocked legislation to increase oversight of Fannie and Freddie.
2005: Fed Chairman Alan Greenspan testified that “By enabling these institutions to increase in size, we are placing the total financial system of the future at a substantial risk.” Fannie and Freddie CEOs admitted to “accounting screw-ups.”
2006: John McCain, Republican, co-sponsored a bill to provide oversight and regulation of the two entities. Every single Democrat on the committee voted against the bill, except Obama: He didn’t vote.
Sorry, the “Rs” didn’t cause this one. Looks like the “Ds” did.
J. Gary Post
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