Barney Frank — a fading Capitol Hill power broker — will return to Washington stripped of his committee clout and wearing a target on his back as top Republicans vow to probe mortgage giants bailed out by taxpayers on the Newton Democrat’s watch.
“I think there’s a responsibility to get down to the errors in judgment which helped create the current financial crisis,” said U.S. Rep. Ed Royce, a California Republican set to become a leader on the powerful Financial Services Committee chaired by Frank. “The fact that Congress was repeatedly warned by the regulators . . . requires vigorous congressional oversight and investigation, lest we repeat the mistakes of the past.”
As Republicans seize control of the House — and Alabama Republican Rep. Spencer Bachus moves to take over Frank’s coveted banking post — new House Oversight Committee chairman Rep. Darrell Issa (R-Calif.) said he’ll drill deep into the fiscal fiasco that led to the collapse of government-backed lenders Fannie Mae and Freddie Mac.
“Everyone agrees there’s a lot to look at to try to address what happened, (such as) the Dodd-Frank legislation not addressing Fannie and Freddie at all,” Issa spokesman Kurt Bardella said. “There’s certainly going to be a lot of interest collectively to look at the things that got us here.”
Frank oversaw billions in federal bailout cash and is a namesake of the Dodd-Frank financial overhaul, along with outgoing Sen. Chris Dodd (D-Conn.). Frank, who will lose his powerful slot in the GOP takeover, has taken heat for not including Fannie and Freddie in the reform package and was criticized for a potential conflict because his former domestic partner was a Fannie Mae exec. He has since admitted he should have heeded early warnings the lending giants were in trouble.
Just this week, Freddie Mac posted a $4.1 billion third-quarter loss because of the slumping housing market. The taxpayer-funded bailout of the two behemoths could end up costing more than $250 billion.Here is more
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So they aren't going to be focusing on job creation? Figured.
ReplyDeleteAll, this is a big deal. It's too bad that the documnet shredder is working overtime. So I hear. Just remember that the other side of the coin of this story is that at the same time banks were given the green light to increase debt to equity ratios.
ReplyDeleteSo isn't it time to close down the FM twins and let government do its regulation function ithout participating in the system to be regulated?
ReplyDeleteThis just makes me sick to my stomach.
ReplyDeleteThere needs to be a lot of investigations to rid Congress of these crooked leftists!
ReplyDeleteBarney Frank should have been in prison years ago !
ReplyDeleteNothing would make me happier than to see this little maggot fry, but let's face it folks-it ain't gonna happen. The politicians are all corrupt and therefore will all look out for each other in the end.
ReplyDelete9:55 That's where the media is supposed to help us out but they have sold out to the Democrat party too!
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