Democrats fought McCain’s efforts to address pending finaincial crisis

The following was sent out by the California Republican Party. I figured that I woud pass it on to my readers, unfiltered.
Democrats Attack McCain Even Though They Blocked Reform Efforts He Sought To Help Fix The Financial Markets

Obama’s Congressional Allies Have Been Attacking Sen. John McCain For Engaging In Negotiations On Legislation To Stabilize Financial Markets:

“In Interviews After The Meeting, Obama Pointed A Finger At His Rival For The Faltering Talks…” (Michael D. Shear and Jonathan Weisman, “Debate Still In Limbo As Democrats Blame McCain For Interrupting Process,” The Washington Post, 9/26/08)

Obama Suggested The Negotiations Were Damaged By Presidential Politics. “Obama suggested the talks were damaged by politics. ‘When you start injecting presidential politics into delicate negotiations you can actually create more problems rather than less,’ Obama said on CNN.” (Alison Vekshin and James Rowley, “House Republicans Undercut Bush On Rescue, Slow Talks,” Bloomberg News, 9/26/08)

But McCain Has Led Efforts To Reform Financial Markets:

The Washington Post: “[W]hen It Comes To Regulating Financial Institutions And Corporate Misconduct, Mr. McCain’s Record Is More In Keeping With His Current Rhetoric.” (Editorial, “‘Always For Less Regulation?'” The Washington Post, 9/19/08)

John McCain Urged Action More Than Two Years Ago, Co-Sponsoring Legislation To Reform Fannie Mae And Freddie Mac Warning: “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.” McCain: “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.” (Office Of U.S. Senator John McCain, “McCain Statement On Co-Sponsorship Of The Federal Housing Enterprise Regulatory Reform Act Of 2005,” Press Release, 5/26/06)

In 2002, McCain Called For Greater Oversight Of Financial Markets Following Accounting Scandals. “In the aftermath of the Enron collapse and other accounting scandals, he was a leader, with Sen. Carl M. Levin (D-Mich.), in pushing to require that companies treat stock options granted to employees as expenses on their balance sheets. ‘I have long opposed unnecessary regulation of business activity, mindful that the heavy hand of government can discourage innovation,’ he wrote in a July 2002 op-ed in the New York Times. ‘But in the current climate only a restoration of the system of checks and balances that once protected the American investor — and that has seriously deteriorated over the past 10 years — can restore the confidence that makes financial markets work.'” (Editorial, “‘Always For Less Regulation?'” The Washington Post, 9/19/08)

McCain Led The Charge To Remove Former SEC Chairman Harvey Pitt. “Mr. McCain was an early voice calling for the resignation of Securities and Exchange Commission Chairman Harvey Pitt, charging that he ‘seems to prefer industry self-policing to necessary lawmaking. Government’s demands for corporate accountability are only credible if government executives are held accountable as well.'” (Editorial, “‘Always For Less Regulation?'” The Washington Post, 9/19/08)

And Obama Ally Rep. Barney Frank (D-MA) Blocked Multiple Attempts At Reforming Fannie Mae And Freddie Mac Spanning Back To 1992:

“[Frank’s] Record Is Close To Perfect As A Stalwart Opponent Of Reforming The Two Companies, Going Back More Than A Decade. The First Concerted Push To Rein In Fan And Fred In Congress Came As Far Back As 1992, And Mr. Frank Was Right There, Standing Athwart. But Things Really Picked Up This Decade, And Barney Was There At Every Turn.” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“Two Years Later, Mr. Frank Was At It Again. ‘I Do Not Regard Fannie Mae And Freddie Mac As Problems,’ He Said In Response To Another Reform Push. And Then: ‘I Regard Them As Great Assets.'” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“A Month Later, Freddie Mac’s Multibillion-Dollar Accounting Scandal Broke Into The Open. But Mr. Frank Was Sanguine. ‘I Do Not Think We Are Facing Any Kind Of A Crisis,’ He Said At The Time.” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“Three Months Later He Repeated The Claim That Fannie And Freddie Posed No ‘Threat To The Treasury.’ Even Suggesting That Heresy, He Added, Could Become ‘A Self-Fulfilling Prophecy.'” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

“In April 2004, Fannie Announced A Multibillion-Dollar Financial ‘Misstatement’ Of Its Own. Mr. Frank Was Back For The Defense. Fannie And Freddie Posed No Risk To Taxpayers, He Said, Adding That ‘I Think Wall Street Will Get Over It’ If The Two Collapsed.” (Editorial, “Fannie Mae’s Patron Saint,” The Wall Street Journal, 9/10/08)

Obama Ally Sen. Chris Dodd (D-CT) Led Efforts To Block Reform Of Fannie Mae And Freddie Mac, After Receiving A Sweetheart Deal On Loans For His Own Houses:

Obama Joined Sen. Dodd – Both Top Recipients Of Fannie And Freddie Contributions – In Opposing Reform Measures And Weakening Existing Regulations. “During this period, Sen. Richard Shelby led a small group of legislators favoring reform, including fellow Republican Sens. John Sununu, Chuck Hagel and Elizabeth Dole. Meanwhile, Dodd — who along with Democratic Sens. John Kerry, Barack Obama and Hillary Clinton were the top four recipients of Fannie and Freddie campaign contributions from 1988 to 2008 — actively opposed such measures and further weakened existing regulation.” (Al Hubbard and Noam Neusner, Op-Ed, “Where Was Sen. Dodd?” The Washington Post, 9/12/08)

Dodd Called On The Regulator For Fannie Mae And Freddie Mac To Lift Portfolio Caps. “Both Schumer and Christopher J. Dodd, D-Conn., the chairman of the Senate Banking, Housing and Urban Affairs Committee, have called on Fannie Mae and Freddie Mac’s regulator to lift the portfolio caps. They argue that allowing the two firms to buy more mortgages, at least temporarily, would inject much needed liquidity into the market and calm the financial markets.” (Michael R. Crittenden, “Schumer Will Seek To Lift Cap On Mortgage Portfolios Of Fannie Mae, Freddie Mac,” Congressional Quarterly Today, 8/16/07)

In 2003, Dodd, Chairman Of The Senate Banking Committee, Received Preferential Loans From Countrywide Financial On His Two Homes Which Saved Him $75,000. “Senators Christopher Dodd, Democrat from Connecticut and chairman of the Banking Committee, and Kent Conrad, Democrat from North Dakota, chairman of the Budget Committee and a member of the Finance Committee, refinanced properties through Countrywide’s ‘V.I.P.’ program in 2003 and 2004, according to company documents and emails and a former employee familiar with the loans. … Senator Dodd received two loans in 2003 through Countrywide’s V.I.P. program. He borrowed $506,000 to refinance his Washington townhouse, and $275,042 to refinance a home in East Haddam, Connecticut. Countrywide wai ved three-eighths of a point, or about $2,000, on the first loan, and one-fourth of a point, about $700, on the second, according to internal documents. Both loans were for 30 years, with the first five years at a fixed rate. The interest rate on the loans, originally pegged at 4.875%, was reduced to 4.25% on the Washington home and 4.5% on the Connecticut property by the time the loans were funded. The lower rates save the senator about $58,000 on his Washington residence over the life of the loan, and $17,000 on the Connecticut home.” (Daniel Golden, “Countrywide’s Many ‘Friends,'” Portfolio, 6/12/08)

Obama Ally Sen. Chuck Schumer (D-NY) Has Been A “Leading Voice For [Financial] Deregulation,” Led Efforts To Block Reform Of Fannie Mae And Freddie Mac, And Was Instrumental In The Collapse Of Bank IndyMac:

Until The Current Financial Crisis, Sen. Chuck Schumer (D-NY) “Had Been A Leading Voice For Deregulation,” Supporting Repeal Of Great-Depression Era Regulations, Re-Examining Corporate Oversight Laws, And Opposing Reducing Taxpayer Risks Associated With Fannie Mae And Freddie Mac. “Until the current credit crisis, Mr. Schumer had been a leading voice for deregulation: He ha s championed the repeal of a Great Depression-era law that prohibited commercial banks from underwriting securities; he has written an opinion piece calling for the Sarbanes-Oxley Act to be ‘re-examined,’ and he has opposed a bill that sought to reduce taxpayer risk in the event of a housing market slowdown by requiring Freddie Mac and Fannie Mae to sell their entire investment portfolios of about $1.5 trillion worth of mortgage assets.” (Joseph Goldstein, “Pro-Deregulation Schumer Scores Bush For Lack of Regulation,” The New York Sun, 9/22/08)

Schumer Called On The Regulator For Fannie Mae And Freddie Mac To Lift Portfolio Caps. “Both Schumer and Christopher J. Dodd, D-Conn., the chairman of the Senate Banking, Housing and Urban Affairs Committee, have called on Fannie Mae and Freddie Mac’s regulator to lift the portfolio caps. They argue that allowing the two firms to buy more mortgages, at least temporarily, would inject much needed liquidity into the market and calm the financial markets.” (Michael R. Crittenden, “Schumer Will Seek To Lift Cap On Mortgage Portfolios Of Fannie Mae, Freddie Mac,” Congressional Quarterly Today, 8/16/07)

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Conservatives keep trying to put this at the feet of the Democrats, but I am not buying it. The above article points out that Rep. Frank was a leading supporter of Freddy and Fanny as far back as 1992. However, between 1994 and 2004, the Republicans controled at both houses of Congress – meaning the Republicans had 10 years – and four years of unified government – to make changes. No… the Republicans were happy with the status quo, and if they had wanted to make changes they had the chance and passed it up.