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: 01-14-2008
Wed, 09-17-2008 - 8:58pm

With Obama's troups trying to make the economy's current meltdown a reason to vote for him, I think it is important to note that at least Mc Cain saw the trouble coming, warned about it and tried to do something.

iVillage Member
Registered: 01-14-2008
Wed, 09-17-2008 - 9:02pm
You want to put some facts behind that claim?
iVillage Member
Registered: 01-14-2008
Wed, 09-17-2008 - 9:04pm

I don't know what Obama was doing back then but he did get $500,000 from Frannie and Freddie in campaign money.

iVillage Member
Registered: 01-05-2008
Wed, 09-17-2008 - 9:44pm
Gee, how soon Republicans forget that they are the party who have condemned the Democrats for wanting to regulate the market.

 

 

Guild Member since 2009

iVillage Member
Registered: 01-14-2008
Thu, 09-18-2008 - 9:56am
Thanks for handling that, we've been dealing with aftermath of Ike here.
iVillage Member
Registered: 09-16-2008
Sat, 09-20-2008 - 9:24am
If both parties felt there was not enough support to 'bring it to the floor' then you can't accuse just one party of 'blocking' the bill. It was never brought up for a full vote - more like the republicans wimped out and dropped the bill. Had they been serious about the bill they would have worked more diligently to get the bill passed. No point crying over spilled milk.

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