In Their Own Words
The Wall Street Journal, seemingly the only media outlet willing to report on Congress’s contributions to the financial mess, compiled a series of direct quotes from Congressional hearings. Some highlights:
House Financial Services Committee hearing, Sept. 25, 2003:
Rep. Frank (D., Mass): I do not want the same kind of focus on safety and soundness that we have in OCC [Office of the Comptroller of the Currency] and OTS [Office of Thrift Supervision]. I want to roll the dice a little bit more in this situation towards subsidized housing. . . .
House Financial Services Committee hearing, Sept. 25, 2003:Rep. Maxine Waters (D., Calif.), Mr. Chairman, we do not have a crisis at Freddie Mac, and in particular at Fannie Mae, under the outstanding leadership of Mr. Frank Raines. Everything in the 1992 act has worked just fine. In fact, the GSEs have exceeded their housing goals. . . .
Rep. Frank: I believe there has been more alarm raised about potential unsafety and unsoundness than, in fact, exists.
Senate Banking Committee, April 6, 2005:Sen. Schumer (D., NY): I’ll lay my marker down right now, Mr. Chairman. I think Fannie and Freddie need some changes, but I don’t think they need dramatic restructuring in terms of their mission, in terms of their role in the secondary mortgage market, et cetera. Change some of the accounting and regulatory issues, yes, but don’t undo Fannie and Freddie.
Senate Banking Committee, June 15, 2006:Sen. Jack Reed (D., R.I.): I think a lot of people are being opportunistic, . . . throwing out the baby with the bathwater, saying, “Let’s dramatically restructure Fannie and Freddie,” when that is not what’s called for as a result of what’s happened here. . . .