How soon we forget

[No faux zone]

Getting a little tired of hearing how this fanny/freddy crisis is the fault of the Republicans.

Here's some reminders from a few years back.

http://www.youtube.com/watch?v=_MGT_cSi7Rs

[PlumbBill]

That will fall on deaf ears.

[JMS BUILDERS]

nice find J

[Lavrans]

Originally Posted by No faux zone

Getting a little tired of hearing how this fanny/freddy crisis is the fault of the Republicans.

Here's some reminders from a few years back.

http://www.youtube.com/watch?v=_MGT_cSi7Rs

I didn't realize the Fanny/Freddy part of the crisis was supposed to be a Republican responsibility. I assumed that those companies were Democratic pets. If you're asking us to believe the entire financial crisis to be a result of Fanny/Freddy I think you're off base, but F/F was a bureaucratic nightmare that falls largely on the Democratic cronyism.

[OBConstruction]

Originally Posted by No faux zone

Getting a little tired of hearing how this fanny/freddy crisis is the fault of the Republicans.

Here's some reminders from a few years back.

http://www.youtube.com/watch?v=_MGT_cSi7Rs

200 to 250 mortgage lenders were belly up by the time Fannie/Freddie was taken over by the government.

The large non-thrift lenders that had exposure to ALT-A, Non-conforming/jumbo and Sub-prime had absolutely ZERO to do with fannie/freddie.

Examples:

Green Point Mortgage (ALT-A owned by Capitol One)
Aurora loan Services (ALT-A owned by Lehman bros)
BNC (sub-prime owned by Lehman bros)
Option One (Sub-Prime owned by H&R Block)
American Home (ALT-A/Sub Prime owned by a real estate investment trust)

This list is from memory................it goes on and on and on.


Furthermore, these lenders had ZERO to do with the CRA bulls**t the republicans have thrown up. As non-thrifts, they wern't subject to any CRA scrutiny.

These lenders and their risky loans were enabled by complicated, UNREGULATED (by Bush's SEC) financials market and "The Commodities Mordernization Act" (notice all the "Rs" behind the creators):

Commodity Futures Modernization Act of 2000
From Wikipedia, the free encyclopedia
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The Commodity Futures Modernization Act of 2000 or CFMA (H.R. 5660 and S.3283) is United States federal legislation which repealed the Shad-Johnson jurisdictional accord, which had banned single-stock futures in 1982. The legislation also provided certainty that products offered by banking institutions would not be regulated as futures contracts.



This act was incorporated by reference into H.R. 4577, an omnibus spending bill. It was passed by the 106th United States Congress and signed by President Bill Clinton on December 21, 2000; the legislation thus became law as a part of H.R. 4577 - Public Law 106–554, §1(a)(5).

The act has been cited as a public-policy decision significantly contributing to Enron's bankruptcy in 2001 and the much broader liquidity crisis of September 2008 that led to the bankruptcy filing of Lehman Brothers and emergency Federal Reserve Bank loans to American International Group[1] and to the creation of the U.S. Emergency Economic Stabilization fund.

Legislative history
The "Commodity Futures Modernization Act of 2000" (H.R. 5660) was introduced in the House on Dec. 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.[2]

The companion bill (S.3283) was introduced in the Senate on Dec. 15th, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.

And the Grahm leach Bliley act. You know, the legislation that unwound legislation put in place THE LAST time we went this route (1929). Again, notice the "Rs":

The bills were introduced in the U.S. Senate by Phil Gramm (R-Texas) and in the U.S. House of Representatives by Jim Leach (R-Iowa). The third lawmaker associated with the bill was Rep. Thomas J. Bliley, Jr. (R-Va),

The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub.L. 106-102, 113 Stat. 1338, enacted November 12, 1999, is an Act of the United States Congress which repealed part of the Glass-Steagall Act of 1933, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.

The Gramm-Leach-Bliley Act (GLBA) allowed commercial and investment banks to consolidate. For example, Citibank merged with Travelers Group, an insurance company, and in 1998 formed the conglomerate Citigroup, a corporation combining banking and insurance underwriting services under brands including Smith-Barney, Shearson, Primerica and Travelers Insurance Corporation. This combination, announced in 1993 and finalized in 1994, would have violated the Glass-Steagall Act and the Bank Holding Company Act by combining insurance and securities companies, if not for a temporary waiver process [1]. The law was passed to legalize these mergers on a permanent basis. Historically, the combined industry has been known as the financial services industry.