Funny you should mention oversight....
Bush in
2001....
The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
Bush in
2002.....
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
2003
Setting the Record Straight: Six Years of Unheeded Warnings for GSE Reform
So Bush called for a 3rd party regulator and the Democrats responded....Well,
72 House Democrats responded via a letter criticizing Bush's calls for third party regulator for Fannie and Freddie...
"We urge you to reconsider your Administration’s criticisms of the housing-related government sponsored enterprises (the GSEs) and instead work with Congress to strengthen the mission and oversight of the GSEs.
We write as members of the House of Representatives who continually press the GSEs to do more in affordable housing.
We have been concerned that the Administration’s legislative proposal regarding the GSEs would weaken affordable housing performance by the GSEs, by emphasizing only safety and soundness.
While the GSEs’ affordable housing mission is not in any way incompatible with their safety and soundness, an exclusive focus on safety and soundness is likely to come, in practice, at the expense of affordable housing.
In
2004 Bush ordered Fannie and Freddie regulator ( OFHEO ) to start its investigation into Fannie and Freddie's curious accounting practices. That led to the FIRST SEC investigation of the GSEs and the largest fine paid by a publicly traded company in American History. In 2006 Fannie Mae was fined 400 Million dollars.
There were even Congressional hearings where the Democrats do what they do best....lie
One more time...
2001
April: The Administration’s FY02 budget declares that the size of Fannie Mae and Freddie Mac is “a potential problem,” because “financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity.”
2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
And the Democrats response....
Barney Frank....
''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis. The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
One more time.....
1997 Freddie Mac made history by launching the first publicly available securitization of Sub-prime loans, issuing $384.6 million of such securities.
Robert Rubin 1998...
"Since 1993, the number of home mortgage loans to African Americans increased by 58%, to Hispanics by 62% and to low- and moderate-income borrowers by 38%, well above the overall market increase.
"Since 1992, nonprofit community organizations estimate that the private sector
has pledged over $1 trillion in loans and investment under CRA.
Bush was the one issuing the warnings about the two most corrupt Financial entities involved in the Sub-prime crisis. Fannie and Freddie. Run by Democrats and protected by Democrat they purchased Trillions in sub-prime loans, packaged them up and sold them off as " AAA " rated MBSs.
They were Countrywide's primary consumer and they were being run like ENRON on steroids. In 2004 a SEC investigation into Fannie Mae's corrupt accounting led to the LARGEST fine from a publicly traded company n American History. A 2011 SEC investigation found that Fannie and Freddie hid Billions in worthless debt
