Monday, September 15, 2008

Is this all they could get?

There is plenty of blame to go around for the mortgage crisis. But the White House, the Treasury, the SEC, the Fed, and the CEA, all tried--unsuccessfully--to reduce Freddie and Fannie's ability to gamble with tax payer money. However these reform efforts were thwarted by a small group of Senators who actively opposed reform and, in fact, weakened existing regulation. The conflict of interest was so apparent that it even got noticed by the Washington Post:

Blessed with the advantages of a government agency and a private company at the same time, Fannie Mae and Freddie Mac used their windfall profits to co-opt the politicians who were supposed to control them. The companies fought successfully against increased regulation by cultivating their friends and hounding their enemies.

Top Recipients of Fannie Mae and Freddie Mac Campaign Contributions, 1989-2008

Name


Office

Party/State

Total

1. Dodd, Christopher


S

D-CT

$133,900

2. Kerry, John


S

D-MA

$111,000

3. Obama, Barack


S

D-IL

$105,849

4. Clinton, Hillary


S

D-NY

$75,550


Of those on the above list, guess which one has the temerity to blame Republicans for the lax regulation?

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