Barney Frank. A Commentary on the Financial Crises of 2008 By Cameron Shorey. Political Career. Graduate of Harvard University in 1962 chief a ssistant in Kevin White’s campaign for Mayor of Boston in 1968 Won seat in Massachusetts State Legislature in 1972
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A Commentary on the Financial Crises of 2008
By Cameron Shorey
2002 – Frank was ranking minority member of committee in charge of monitoring the Federal Reserve and other financial entities including Fannie Mae and Freddie Mac.
However, government backing gave Fannie Mae, Freddie Mac a monopoly on secondary mortgages and government implied a guarantee to keep the firms buoyant
As two chartered, government-sponsored enterprises (GSE), the original mission of Fannie Mae and Freddie Mac was to make mortgages more affordable in the U.S.
Many politicians and economists saw trouble looming in the current structure, but in 2003 Frank assured the world that the GSE’s were “fundamentally sound financially and withstand some of the disastrous scenarios”
With support from congress, especially Barney Frank, Fannie Mae and Freddie Mac among other large firms were able to increase in size and risk with their mortgages creating a housing bubble
Frank supported home ownership and dismissed the claims that there was a housing bubble of any kind
Audio quote (MSNBC):
But didn’t we just hear Frank say that it was his committee that would continue to push for housing?
in 2010 Frank blames the Bush administration for the needed bailout of Fannie Mae by encouraging home ownership…
Yes, we did.
Interview with Larry King
compared to speech on C-SPAN:
In response to the “Great Recession,” the Dodd-Frank Wall Street Reform and Consumer Protection Act is being written in an effort to bring more regulation to the financial environment. Ironically, Barney Frank is one of the authors.
“I think it’s perfectly reasonable for people to be angry, but let’s be clear who put the fix in. The fix was put in by the federal government. If you want to put people in jail, I’ll second what [Rep. Michele Bachmann (R-MN)] said. Start with Barney Frank and Chris Dodd and let’s look at the politicians who created the environment.” - Newt Gingrich