Bailout defeated in House

bubba74 · #1 (**permalink**) 09-29-2008, 04:30 PM

House votes down massive bailout measure - Economy in Turmoil - MSNBC.com

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WASHINGTON - The House on Monday defeated a $700 billion emergency rescue package, ignoring urgent pleas from President Bush and bipartisan congressional leaders to quickly bail out the staggering financial industry.

Stocks plummeting on Wall Street even before the 228-205 vote to reject the bill was announced on the House floor.

Why are these guys trying so hard?

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Many of us feel that the national interest requires us to do something which is, in many ways, unpopular," said Rep. Barney Frank, the Financial Services Committee chairman, before the vote. "It is hard to get political credit for avoiding something that has not yet happened."

Media Mum on Barney Frank's Fannie Mae Love Connection

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In 1991, Frank and former Rep. Joe Kennedy, D-Mass., lobbied for Fannie to soften rules on multi-family home mortgages although those dwellings showed a default rate twice that of single-family homes, according to the Nov. 22, 1991, Boston Globe.

Just a month before, Frank had aggressively thwarted reform efforts by the Bush administration. He told The New York Times on Sept. 11, 2003, Fannie Mae and Freddie Mac’s problems were “exaggerated,” a gross miscalculation some five years later with costs estimated to be in the hundreds of billions.

“These two entities – Fannie Mae and Freddie Mac – are not facing any kind of financial crisis,” Frank said to the Times. “The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

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Sen. Chris Dodd, D-Conn., said that failure to act would spread the contagion of frozen credit markets even further. "This is not just about Wall Street," said the Banking Committee chairman.

Morning Bell: Did Ken Lay Get to Write Sarbanes-Oxley? » The Foundry

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Just last week, Senate Banking Chairman Chris Dodd (D-CT), who has taken more money from Fannie and Freddie than any other politician, again defended Fannie and Freddie and advocated for their resurrection.

Now the left has let Dodd author its financial bailout proposal. And again, Dodd is alarmingly eager to funnel taxpayer money to corrupt leftist housing allies. Dodd proposes to direct one fifth of all taxpayer profits from the sale of any assets bought by the Treasury into two trust funds: 65% would go to the Housing Trust Fund and 35% to the Capital Magnet Fund. Both funds are designed to “support a variety of affordable housing initiatives.”

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Enron’s financial lies destroyed more than $63 billion in assets. Freddie and Fannie’s financial lies are going to cost the entire world much, much more. When the Senate went to write new accounting legislation after Enron’s collapse, it did not invite disgraced Enron chief executive Ken Lay to draft the legislation. Why on earth is the Senate letting Chris Dodd, both Freddie and Fannie’s biggest defender and benefactor, write this legislation

Lets start by arresting these two SOB's. I m sure the rest will fall into line quickly.

outofworkjoe · #2 (**permalink**) 09-29-2008, 08:00 PM

I guess I get it now,Pass this and we vote you out.

No more said.

roadrage · #3 (**permalink**) 09-29-2008, 08:31 PM

Amen. NO BAILOUT!

Roadrunner73 · #4 (**permalink**) 09-29-2008, 08:58 PM

If these crooks faced any sort of punishment, I'd go for the bailout; with rules & oversight by nonpoliticans. As usual, the ones who paid their bills, did the rights things, are left holding the bag. The golden parachutes open & the crooked bastards come out in great shape. The clueless, gutless wonders we have in government are the boobie prize for us as a country. As bad as it seems now, look at what awaits us as the next president.

DrDock · #5 (**permalink**) 09-30-2008, 01:39 AM

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Originally Posted by bubba74

House votes down massive bailout measure - Economy in Turmoil - MSNBC.com

Why are these guys trying so hard?

Media Mum on Barney Frank's Fannie Mae Love Connection

Morning Bell: Did Ken Lay Get to Write Sarbanes-Oxley? » The Foundry

Lets start by arresting these two SOB's. I m sure the rest will fall into line quickly.

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Created in the wake of the Crash of 1929, the SEC was conceived by Congress in the Securities Exchange Act of 1933, and came into being in 1934. Its commission is composed of five members, and no more than three can be of the same political party. Commissioners are nominated by the president and confirmed by the Senate for staggered five-year terms. The president designates one to serve as chair.

Former Rep. Christopher Cox, R-Calif., was nominated by President George W. Bush (to serve as commissioner and chair in 2005 after the resignation of Chairman William Donaldson, who had several "ideological" disagreements with other members of the panel. (Donaldson, also a Bush nominee, has since endorsed Sen. Barack Obama, D-Ill.)

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The SEC eliminated the uptick rule on July 6, 2007.[3] The elimination of the rule was preceded by a SEC order, placed on July 28, 2004, to create a one-year pilot temporarily suspending the uptick rule on select securities. The purpose of the suspension was so that the commission could study the effectiveness of the rule. The SEC's Office of Economic Analysis and academic researchers provided the SEC with analysis of the data obtained during the pilot. The consensus was against the uptick rule, with the commission concluding that the uptick rule "modestly reduce[d] liquidity and do[es] not appear necessary to prevent manipulation."[2]

The rule was originally put in place to avoid the perpetration of a financial crime known as a bear raid. However, short sellers themselves viewed the rule as "largely symbolic" and having little actual effect on short selling.[4

]

seems to me GW and his cronies aka: Republicans had alot to do with those appointed and responsible for todays fiasco

Arrest BUSH !

bubba74 · #6 (**permalink**) 09-30-2008, 10:54 AM

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seems to me GW and his cronies aka: Republicans had alot to do with those appointed and responsible for todays fiasco

can you read?

The seeds for this were planted in the 1970's
Clinton expanded it
Bush warned of it in 2002- Dems palyed the race card
McCain tried to pass a bill for over sight in 2005- Dems played the race card.

Testimony: Accounting Irregularities at Fannie Mae (Chairman Christopher Cox, June 16, 2006)

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Christopher Cox, R-Calif.,
On May 23rd, the Commission and the Office of Federal Housing Enterprise Oversight jointly announced settlements with Fannie Mae for accounting fraud. The settlements require the company to pay a penalty of $400 million. This is a meaningful penalty designed to deter future misconduct. Moreover, as a result of the Fair Fund provisions of the Sarbanes-Oxley Act, most of the penalty will likely be used to compensate defrauded investors. Both Director Lockhart and I agree that a penalty of this size represents a meaningful sanction that is necessary to address the egregiousness of Fannie Mae's conduct. Fraudulent financial reporting directly undermines the fairness of our capital markets, and the very purpose of those markets to allocate capital to its best uses.

The Commission's action alleges that Fannie Mae misstated its financial statements from at least 1998 through 2004.

As you well know, the securities issued by Fannie Mae are "exempt securities" under current laws administered by the SEC

Excempt from SEC laws. It is a GSE.

CEI President Testifies on Fannie Mae, Freddie Mac | CEI

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Fannie and Freddie were granted special privileges in their charters. They are exempt from SEC registration (an exemption estimated to save them hundreds of millions annually) and from state and local taxes (another “savings” in the hundreds of millions – and one that is especially troubling here in the District of Columbia). Banking rules allow their securities to be held in unlimited amounts by banks and other deposit-insured institutions (based on the presumption that they are somehow “riskless” securities). They were also granted an explicit line of credit from the Treasury. Most importantly, there is a widespread presumption that in the event of problems, the full faith and credit of the U.S. government will be called upon – that Fannie/Freddie are Too Big To Fail!

The mere fact that the MSM is NOT looking deeper than the surface pretty much means that this Dems mess and they are just trying to pass the buck (as usual). No responsibility, its always someone elses fault. Dodd, Frank, Johnson, Raines all need to be the first picked up by the FBI.