[quote=investor] Someone mentioned, I think you, that you admire barney frank and dodd. How do you feel about franks promotion of easy mortgage loaning during the 1990’s and 2000’s that has lead directly to our current mess? I admit that bush should not have gone to war in iraq. Can you put aside your political leanings and admit that frank, for reasons of trying to promote black home ownership- a worthwhile goal- screwed up big time and should be kicked out of all power over banking in the US congress?
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I don’t have any recollection of any legislation in the 90’s that lead to the current mess, other than the Gramm–Leach–Bliley Act in 1999, which passed with a veto proof majority. Frank voted against it.
You’ll have to identify specifically his “promotion of easy mortgage loaning during the 1990’s and 2000’s that has lead directly to our current mess”, that can be laid at his feet, and not others, at least equally. Congress screwed up. As did another dozen groups, with even great responsibility. (as an aside, I have to laugh in this era of libertarian craziness, when conservatives blame the financial crisis on the government for not regulating business.)
Despite his support for both fannie and freddie, he attempted early this decade to limit their involvement in sub-prime lending by sponsoring bipartisan legislation with Mike Oxley, which never got a vote in the Senate and was opposed by the administration. Had it passed, it would have kept 10’s of thousands as renters instead of buyers who couldn’t afford their loans.
The whole fannie/freddie is to blame is a long debunked canard. (kinda like acorn and voter fraud) Neither ever made a single subprime loan. When subprime volume skyrocketed, their total loan portfolios shrunk as percentage of the market.
Frank isn’t perfect, far from it. He understand finance much better than most congressmen, but not as well as he should. But no, I don’t think he should be kicked out of all power over banking in congress. I’m not aware of any significant failures he’s had in that position that would warrant that. I’d be glad to rethink that position if you can identify them specifically.
