Mc Cain Bill Dems Blocked !!

iVillage Member
Registered: 01-14-2008
Mc Cain Bill Dems Blocked !!
46
Tue, 09-16-2008 - 9:33pm

Mc Cain co-sponsered a bill in 2005 that very well might have prevented the housing disaster that started the downhill slide of the economy.  It was blocked by the Democrats.  Read and learn:


Federal Housing Enterprise Regulatory Reform Act of 2005


Bill Summary


1/26/2005--Introduced. Federal Housing Enterprise Regulatory Reform Act of 2005 - Amends the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to establish: (1) in lieu of the Office of Federal Housing Enterprise Oversight of the Department of Housing and Urban Development (HUD), an independent Federal Housing Enterprise Regulatory Agency which shall have authority over the Federal Home Loan Bank Finance Corporation, the Federal Home Loan Banks, the Federal National Mortgage Association (Fannie Mae), and the Federal Home Loan Mortgage Corporation (Freddie Mac); and (2) the Federal Housing Enterprise Board. Sets forth operating, administrative, and regulatory provisions of the Agency, including provisions respecting: (1) assessment authority; (2) authority to limit nonmission-related assets; (3) minimum and critical capital levels; (4) risk-based capital test; (5) capital classifications and undercapitalized enterprises; (6) enforcement actions and penalties; (7) golden parachutes; and (8) reporting. Amends the Federal Home Loan Bank Act to establish the Federal Home Loan Bank Finance Corporation. Transfers the functions of the Office of Finance of the Federal Home Loan Banks to such Corporation. Excludes the Federal Home Loan Banks from certain securities reporting requirements. Abolishes the Federal Housing Finance Board.


Sen. John McCain : Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.


The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the 6 years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.


The OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.


For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac—known as Government-sponsored entities or GSEs—and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.


I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.


I urge my colleagues to support swift action on this GSE reform legislation.




 


 

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iVillage Member
Registered: 04-03-2003
Tue, 09-16-2008 - 9:46pm

Requiring higher capitalization levels would definately have helped the current problem for financial institutions, maybe even saved some of them.

iVillage Member
Registered: 04-02-2008
Tue, 09-16-2008 - 10:01pm
Yes but at least he tried something, let me tell you I audit and those loans were stinking bad ie term changes with no acknowledgement by borrower, borrowers not signing correct names and fannie and freddie didn't care.
iVillage Member
Registered: 03-25-2007
Tue, 09-16-2008 - 10:14pm
It sounds like it may have helped.

Sopal

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iVillage Member
Registered: 08-20-2008
Tue, 09-16-2008 - 10:50pm
I wonder why McCain never followed up on this type of legislation as the warning signs got brighter and brighter?
iVillage Member
Registered: 06-09-2008
Tue, 09-16-2008 - 10:59pm

Why do you think that the Republican committee chair and/or Frist didn't put this out to the floor?

iVillage Member
Registered: 06-09-2008
Tue, 09-16-2008 - 11:04pm
"I wonder why McCain never followed up on this type of legislation as the warning signs got brighter and brighter?"

iVillage Member
Registered: 09-16-2008
Tue, 09-16-2008 - 11:18pm
Just curious - was Obama on this committee? Why weren't the republicans able to find a middle ground that would move this bill forward if they really felt it was important? Surely middle ground would have been better than no bill at all? Weren't they in control at the time? It is so hard to read between all the politically motivated posts - a lot of them sound like smear campaigns.
iVillage Member
Registered: 03-25-2007
Tue, 09-16-2008 - 11:29pm
The Dems didn't drop the ball at all.

Sopal

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iVillage Member
Registered: 03-25-2007
Tue, 09-16-2008 - 11:32pm
The Republicans were in control of the committee and the Senate,

Sopal

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iVillage Member
Registered: 09-08-2008
Tue, 09-16-2008 - 11:39pm
What has the maverick done since 2005? He cost the taxpayers 3.4BILLION dollars, along with 4 of his friends, so he needs to get crackin' if he plans on doing enough to erase that blunderous scandal. It's just one bill. lol.

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