Video of Congressional Hearnings In Which Democrats Assure Us Fannie and Freddie Are Doing Great and Attack Regulators!

This video is of a hearing held by Congress to take testimony from Armando Falcon, head of the Office of Federal Housing Enterprise Oversight (OFEO).

In this video you will see Democrats fighting tooth and nail to keep Fannie and Freddie from being reformed before these government-sponsored entities blew up, the fallout from which is now threatening the world's financial structure. Here is the video of the hearings in which Democrats tell us "nothing is wrong," everything is great, there are no problems. They use the hearings as an opportunity to beat up on the would-be regulators, accuse them of wanting to lynch Franklin Raines, and tell us that Fannie and Freddie are operating exactly as they want them to act.

We see Maxine Waters (DEMOCRAT) accuse the regulators of “…trying to fix something that wasn’t broke;” and stating that “under the outstanding leadership of Mr. Frank Raines everything under the 1995 act has worked just fine.” She also praised “desktop underwriting and 100% loans.”

We see Gregory Meeks (DEMOCRAT) tell OFEO’s Falcon “I’m pissed off at OFEO” and “Nothing that’s indicated that’s wrong with Freddie Mac.” He’s attacking the regulators for raising questions about Freddie’s business practices; practices that led to catastrophe just four years later.

We see Arthur Davis (DEMOCRAT) say “…that sounds like some kind of invisible line has been crossed” when regulators dared to raise concerns about Fannie and Freddie.

We see Lacy Clay (DEMOCRAT) claim that “This hearing is about the political lynching of Franklin Raines.”

We see Barney Frank (DEMOCRAT) defending Fannie and Freddie’s accounting practices stating that “I don’t see anything in your report that raises safety and soundness problems.” Frank goes on: “It serves us badly to raise safety and soundness as a general shibboleth when it does not seem to be an issue.

And then we have the testimony of Franklin Raines, CEO of Fannie Mae testifying that the real estate backed assets (mortgages) he holds are “so riskless” that he should be able to leverage his assets 50 to 1. At the time he was borrowing $30 for every $1 of capital. That means that if real estate declined just 3% Fannie Mae is wiped out. That is exactly what happened – and worse - and we are left holding the bag.

Meanwhile Franklin Raines has collected $100 million and is advising Barack Obama.




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The Best Congress Fannie Could Buy

This is a long and complicated story about how Obama backers were behind the mortgage industry meltdown. It hast to start some where, so lets start with a well known Chicago name Penny Pritzker. It starts with a bank failure.

NOTE: the original comments have been edited and extended with quotes from the video.