“The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disastrous scenarios. And even if there were a problem, the Federal Government doesn’t bail them out.”
Barney Frank in 2003 in his opposition to regulatory initiatives of the GSEs…
“Then in October of 2003 Frank said ”he worried the Treasury Department “would sacrifice activities that are good for consumers in the name of lowering the companies’ market risks.” When Republicans introduced a bill to Congress in 2005 to regulate Fannie Mae democrats led by Barney Frank and Chris Dodd killed the bill which ultimately led to the collapse of the housing market and eventually sent the country into a recession.”
