Bush knew about the mortgage fraud at Fannie Mae as far back as 2003

[Major Hogwash]

The story is just now coming out in the news that Fannie Mae insiders warned Bush of the illegal practices that were being done at Fannie Mae, yet he did nothing to stop it.

The New York Times article is referenced here ----
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x5014980

[salvorhardin]

1. This is one area where the Bush administration tried to do the right thing

They might not have disclosed all they knew, but they did try to to get reform through. Of course, if they had disclosed all they knew, then maybe we could have avoided some of this mess.

For Immediate Release
Office of the Press Secretary
October 9, 2008

Setting the Record Straight: Six Years of Unheeded Warnings for GSE Reform
The Washington Times Fails To Research The Administration's Efforts To Reform Fannie Mae And Freddie Mac

Today, the Washington Times incorrectly accused the White House of ignoring warnings of trouble ahead for government-sponsored enterprises (GSEs) and neglecting to "adopt any reform until this summer," when it was too late. "Neither the White House nor Congress heeded the warnings, Fannie and Freddie retained strong bipartisan support during the 1990s and early part of this decade." (Editorial, "Hear, See And Speak No Evil About Fannie And Freddie," The Washington Times, 10/9/08)

Over the past six years, the President and his Administration have not only warned of the systemic consequences of failure to reform GSEs but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. In fact, it was Congress that flatly rejected President Bush's call more than five years ago to reform the GSEs. Over the years, the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems with the GSEs.

...

2003
September: Then-House Financial Services Committee Ranking Member Barney Frank (D-MA) strongly disagrees with the Administration's assessment, saying "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." (Stephen Labaton, "New Agency Proposed To Oversee Freddie Mac And Fannie Mae," The New York Times, 9/11/03)

http://georgewbush-whitehouse.archives.gov/news/releases/2008/10/20081009-10.html

[Syrinx]

3. I thought that was supposed to be "AIDS in Africa"

Any supposed "good" that Bush did was paved with hidden motives.

And you're posting a Bush press release criticizing the Washington Times. My head is spinning, trying to parse that.

[Name removed]

5. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Syrinx]

6. Yes I am that "pathetic" according to you baggers

To use "criticism" from the Washington Times of Bush to "prove" he wasn't a total criminal, right-wing tool is pathetic. And "supporting" documents from the office of Ari Fleiser, or whoever succeeded him? Next, will we see excerpts from the Washington "Examiner?"

Bush policies were responsible for the economic meltdown that we are living through. Are you okay with that?

The Bush family is American Enemy Number One, as far as I am concerned. And I would not mind a bit if you went back to your bunker under Jim Robinson's house and never came out again.

[Name removed]

8. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Syrinx]

9. "If I wrote what I really felt, I would be banned"

Exactly. You are a bagger.

[SpiralHawk]

7. The Baggers (R) give Obama credit for bin Laden?

Bwaaa ha ha ha ha. Where did you imagine that?

[Major Nikon]

17. Shrub deserves no credit

Apparently you're under the impression that the Shrub administration was championing GSE reform while everyone else was stymieing it. And where do you get this idea? Well, from Shrub himself, who claims the Moonie times didn't give him a fair shake. :eyes:

The reality was exactly the reverse. Shrub didn't invent the idea of GSE reform. In the 2003-2004 time frame numerous reform bills written by both sides of the isle were being floated in congress. Bush's proposal was only one of many, and his was dead on arrival. Why? Because Shrub wanted to abolish the OFHEO and absorb those functions within the Treasury department. All other proposals that didn't include that provision were railroaded by Shrub's administration. And why do you think Shrub was trying to abolish an agency that had the exclusive duty of regulating the two GSEs in question? Because doing so would make it far easier for Shrub to allow the industry to write it's own regulations, as he was doing everywhere else.

[salvorhardin]

19. "Apparently you're under the impression..."

Ya know, it really helps when having a conversation if you don't just assume you know what the other person thinks or believes.

[Major Nikon]

20. Apparently you felt the burning desire to join the conversation

...while having nothing useful to add to the discussion.

:eyes:

[malaise]

4. The Republicans were in charge of the House in 2003

Why would anything Barney Frank said have mattered then?

[Kolesar]

2. The issue is that the banks created fake documents for "the foreclosue courts"

The loans were prepared badly and documents were missing. The banks hired "mortgage service companies" to create and notarize fake documents.

[melm00se]

10. yes

Bush did know and what did he attempt to do?

New Agency Proposed to Oversee Freddie Mac and Fannie Mae

the proposal was wrapped up in the Federal Housing Enterprise Regulatory Reform Act of 2005 (S190 and HR1461)

on the surface it appears that the Bush Administration was hypocritical in calling for reform and then yet opposing HR1461.

The reason the Bush administration opposed HR1461 was:

H.R. 1461 fails to include key elements that are essential to protect the safety and soundness of the housing finance system and the broader financial system at large. As a result, the Administration opposes the bill.

Read more at the American Presidency Project: George W. Bush: Statement of Administration Policy: H.R. 1461 - Federal Housing Finance Reform Act of 2005 http://www.presidency.ucsb.edu/ws/index.php?pid=24851#ixzz1ZuPX6eXn

Yes, in many (if not most) aspects, Bush was a piss poor president but in this case he was (as we look back) spot-on in his administrations analysis of the Fannie and Freddie situation.

I guess this will earn me the label of "bagger" by Syrinx but the way I see it, while IndyPragmatist's OP source (written 5 years after the event and subject to revisionism) is anathema to most progressives, it is backed up by sources reporting proximal to the event by third parties, thus IndyPragmatist is owed an apology for being branded with the scarlet "B".

[Octafish]

11. Gosh. It's like organized crime took over the government.

Who knew?

I mean, besides the BFEE?

[Major Hogwash]

16. It's sort of amazing to me that Bush and his entire cabinet haven't been rounded up yet.

They're still walking around free as a jaybird.
Makes no sense to me.

[Octafish]

22. Game Over: How Bush Bankrupted Fannie and Freddie

Did you see this, posted in 2008 by gjohnsit at Daily Kos?

Game Over: How Bush Bankrupted Fannie and Freddie

EXCERPT...

Considering the massive size of this scandal, how did Fannie and Freddie manage to avoid being heavily regulated or even nationalized? They spent $170 million lobbying Congress and another $19.3 million in direct campaign contributions. In other words, they legally bribed the people who were supposed to be regulating them.

Lots o' links to details there.

PS: No matter how much anyone begged me to look forward, rounding up the criminals who lied America into war would be at the top of my administration's To-Do List. Seems we and our party have different priorities, Major Hogwash. Someone else who's noticed is Gov. Don Siegelman.

[deaniac21]

12. If Barney Frank had been president this would have been

fixed immediately.

[joeybee12]

13. KNR

[Proud Liberal Dem]

14. Just in time for the 2004 elections

Oh, wait.........:eyes: It was absolutely nauseating the number of stories that were apparently covered up during the 2004 election because news outlets didn't want to "influence" the election results (without apparently even realizing the irony of what they were saying). I wonder what else will come to light about what was going that we all should've known about prior to his "re-election" in 2004.

As to the actual story, the incompetence and/or lack of concern that he exhibited on a regular basis about everything was stunning. It's scary what else he knew about but didn't do anything about that we're now paying for. :shrug: :puke:

[nadinbrzezinski]

15. How surprised should I feign to be?

[robdogbucky]

18. And like so many other things (S&L debacle, etc.) both sides participate.....

Odd Couple Of Norquist, Hamsher Call For Investigation, Rahm's Resignation
Dec 23 2009, 4:12 PM ET


Grover Norquist and Jane Hamsher are not often on the same side of anything, beyond both usually being in the Western Hemisphere. Norquist is a leading voice of fiscal conservatism as head of the anti-tax group Americans for Tax Reform; Hamsher is a leading voice of the digital left, whose blog Firedoglake has taken on influence in speaking up for progressives during the health care debate and in pressuring lawmakers through its activist arm, FDL Action.

But the two have united to level serious allegations at White House Chief of Staff Rahm Emanuel and demand his resignation.

Hamsher and Norquist coauthored a letter to Attorney General Eric Holder today calling for a Department of Justice investigation of Emanuel for his role on the board of Freddie Mac, alleging that the White House, since Emanuel arrived there, has blocked an investigation of the government-sponsored mortgage lender.

Emanuel served on Freddie Mac's board in 2000-2001, when he quit to run (successfully) for Congress. He has also recently sparked the ire of liberals like Hamsher after it was reported that he pushed for Senate Democratic leaders to compromise with Sen. Joe Lieberman (I-CT) on health care reform and jettison an expansion of Medicare from the Senate bill.

See their letter below:
http://www.theatlantic.com/business/archive/2009/12/odd-couple-of-norquist-hamsher-call-for-investigation-rahms-resignation/32543/






Dear Attorney General Holder:

We write to demand an immediate investigation into the activities of White House Chief of Staff Rahm Emanuel. We believe there is an abundant public record which establishes that the actions of the White House have blocked any investigation into his activities while on the board of Freddie Mac from 2000-2001, and facilitated the cover up of potentially malfeasance until the 10-year statute of limitations has run out.

The purpose of this letter is to connect the dots to establish both the conduct of Mr. Emanuel and those working with him to thwart inquiry, and to support your acting speedily so that the statute of limitations does not run out before the Justice Department is able to empanel a grand jury.

The New York Times reports that the administration is negotiating to double the commitments to Fannie and Freddie for a total of $800 billion by December 31, in order to avoid the congressional approval that would be needed after that date. But there currently is no Inspector General exercising independent oversight of these entities. Acting Inspector General Ed Kelly was stripped of his authority earlier this year by the Justice Department, relying on a loophole in a bill Mr. Emanuel cosponsored and pushed through Congress shortly before he left for the White House. This effectively ended Mr. Kelly's investigation into what happened at Fannie and Freddie...


...We both come from differing political ideologies. One of us is the conservative head of a transparency foundation, and the other is the publisher of a liberal political blog. But we make common cause today out of grave concern for the future of our country in the wake of corruption-riddled bailouts. These bailouts continue to rob Main Street to benefit Wall Street, and because that, we together demand the resignation of Mr. Emanuel, a man who has steadfastly worked to obstruct both oversight and inquiry into the matter. Rahm Emanuel's conflicts of interest render him far too compromised to serve as gatekeeper to the President of the United States.

We will lay out the details further below, and are available at your earliest convenience to meet with you directly.

Sincerely,


Jane Hamsher Grover Norquist

Firedoglake.com Americans for Tax Reform

http://www.theatlantic.com/business/archive/2009/12/odd-couple-of-norquist-hamsher-call-for-investigation-rahms-resignation/32543/

[Dawson Leery]

21. At the time, the GOP controlled the House and Senate as well as the Whitehouse.

The GOP turned a blind eye as they needed something to revive the economy in time for the 2004 election AS WELL as line the pockets of their donors.