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Goverment sponsored Enterprise and Bush...
BushMonkey
Member Posts: 1,406
For many years the President and his Administration have not only warned of the systemic consequences of financial turmoil at a housing government-sponsored enterprise (GSE) but also put forward thoughtful plans to reduce the risk that either Fannie Mae or Freddie Mac would encounter such difficulties. President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities were thwarted by the legislative maneuvering of those who emphatically denied there were problems.
2001
April: The Administration's FY02 budget declares that the size of Fannie Mae and Freddie Mac is "a potential problem," because "financial trouble of a large GSE could cause strong repercussions in financial markets, affecting Federally insured entities and economic activity."
2002
May: The President calls for the disclosure and corporate governance principles contained in his 10-point plan for corporate responsibility to apply to Fannie Mae and Freddie Mac. (OMB Prompt Letter to OFHEO, 5/29/02)
2003
January: Freddie Mac announces it has to restate financial results for the previous three years.
February: The Office of Federal Housing Enterprise Oversight (OFHEO) releases a report explaining that "although investors perceive an implicit Federal guarantee of [GSE] obligations," "the government has provided no explicit legal backing for them." As a consequence, unexpected problems at a GSE could immediately spread into financial sectors beyond the housing market. ("Systemic Risk: Fannie Mae, Freddie Mac and the Role of OFHEO," OFHEO Report, 2/4/03)
September: Fannie Mae discloses SEC investigation and acknowledges OFHEO's review found earnings manipulations.
September: Treasury Secretary John Snow testifies before the House Financial Services Committee to recommend that Congress enact "legislation to create a new Federal agency to regulate and supervise the financial activities of our housing-related government sponsored enterprises" and set prudent and appropriate minimum capital adequacy requirements.
October: Fannie Mae discloses $1.2 billion accounting error.
November: Council of the Economic Advisers (CEA) Chairman Greg Mankiw explains that any "legislation to reform GSE regulation should empower the new regulator with sufficient strength and credibility to reduce systemic risk." To reduce the potential for systemic instability, the regulator would have "broad authority to set both risk-based and minimum capital standards" and "receivership powers necessary to wind down the affairs of a troubled GSE." (N. Gregory Mankiw, Remarks At The Conference Of State Bank Supervisors State Banking Summit And Leadership, 11/6/03)
2004
February: The President's FY05 Budget again highlights the risk posed by the explosive growth of the GSEs and their low levels of required capital, and called for creation of a new, world-class regulator: "The Administration has determined that the safety and soundness regulators of the housing GSEs lack sufficient power and stature to meet their responsibilities, and therefore…should be replaced with a new strengthened regulator." (2005 Budget Analytic Perspectives, pg. 83)
February: CEA Chairman Mankiw cautions Congress to "not take [the financial market's] strength for granted." Again, the call from the Administration was to reduce this risk by "ensuring that the housing GSEs are overseen by an effective regulator." (N. Gregory Mankiw, Op-Ed, "Keeping Fannie And Freddie's House In Order," Financial Times, 2/24/04)
June: Deputy Secretary of Treasury Samuel Bodman spotlights the risk posed by the GSEs and called for reform, saying "We do not have a world-class system of supervision of the housing government sponsored enterprises (GSEs), even though the importance of the housing financial system that the GSEs serve demands the best in supervision to ensure the long-term vitality of that system. Therefore, the Administration has called for a new, first class, regulatory supervisor for the three housing GSEs: Fannie Mae, Freddie Mac, and the Federal Home Loan Banking System." (Samuel Bodman, House Financial Services Subcommittee on Oversight and Investigations Testimony, 6/16/04)
2005
April: Treasury Secretary John Snow repeats his call for GSE reform, saying "Events that have transpired since I testified before this Committee in 2003 reinforce concerns over the systemic risks posed by the GSEs and further highlight the need for real GSE reform to ensure that our housing finance system remains a strong and vibrant source of funding for expanding homeownership opportunities in America… Half-measures will only exacerbate the risks to our financial system." (Secretary John W. Snow, "Testimony Before The U.S. House Financial Services Committee," 4/13/05)
2007
July: Two Bear Stearns hedge funds invested in mortgage securities collapse.
August: President Bush emphatically calls on Congress to pass a reform package for Fannie Mae and Freddie Mac, saying "first things first when it comes to those two institutions. Congress needs to get them reformed, get them streamlined, get them focused, and then I will consider other options." (President George W. Bush, Press Conference, The White House, 8/9/07)
September: RealtyTrac announces foreclosure filings up 243,000 in August – up 115 percent from the year before.
September: Single-family existing home sales decreases 7.5 percent from the previous month – the lowest level in nine years. Median sale price of existing homes fell six percent from the year before.
December: President Bush again warns Congress of the need to pass legislation reforming GSEs, saying "These institutions provide liquidity in the mortgage market that benefits millions of homeowners, and it is vital they operate safely and operate soundly. So I've called on Congress to pass legislation that strengthens independent regulation of the GSEs – and ensures they focus on their important housing mission. The GSE reform bill passed by the House earlier this year is a good start. But the Senate has not acted. And the United States Senate needs to pass this legislation soon." (President George W. Bush, Discusses Housing, The White House, 12/6/07)
2008
January: Bank of America announces it will buy Countrywide.
January: Citigroup announces mortgage portfolio lost $18.1 billion in value.
February: Assistant Secretary David Nason reiterates the urgency of reforms, says "A new regulatory structure for the housing GSEs is essential if these entities are to continue to perform their public mission successfully." (David Nason, Testimony On Reforming GSE Regulation, Senate Committee On Banking, Housing And Urban Affairs, 2/7/08)
March: Bear Stearns announces it will sell itself to JPMorgan Chase.
March: President Bush calls on Congress to take action and "move forward with reforms on Fannie Mae and Freddie Mac. They need to continue to modernize the FHA, as well as allow State housing agencies to issue tax-free bonds to homeowners to refinance their mortgages." (President George W. Bush, Remarks To The Economic Club Of New York, New York, NY, 3/14/08)
April: President Bush urges Congress to pass the much needed legislation and "modernize Fannie Mae and Freddie Mac. [There are] constructive things Congress can do that will encourage the housing market to correct quickly by … helping people stay in their homes." (President George W. Bush, Meeting With Cabinet, the White House, 4/14/08)
May: President Bush issues several pleas to Congress to pass legislation reforming Fannie Mae and Freddie Mac before the situation deteriorates further.
"Americans are concerned about making their mortgage payments and keeping their homes. Yet Congress has failed to pass legislation I have repeatedly requested to modernize the Federal Housing Administration that will help more families stay in their homes, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance sub-prime loans." (President George W. Bush, Radio Address, 5/3/08)
"[T]he government ought to be helping creditworthy people stay in their homes. And one way we can do that – and Congress is making progress on this – is the reform of Fannie Mae and Freddie Mac. That reform will come with a strong, independent regulator." (President George W. Bush, Meeting With The Secretary Of The Treasury, the White House, 5/19/08)
"Congress needs to pass legislation to modernize the Federal Housing Administration, reform Fannie Mae and Freddie Mac to ensure they focus on their housing mission, and allow State housing agencies to issue tax-free bonds to refinance subprime loans." (President George W. Bush, Radio Address, 5/31/08)
June: As foreclosure rates continued to rise in the first quarter, the President once again asks Congress to take the necessary measures to address this challenge, saying "we need to pass legislation to reform Fannie Mae and Freddie Mac." (President George W. Bush, Remarks At Swearing In Ceremony For Secretary Of Housing And Urban Development, Washington, D.C., 6/6/08)
July: Congress heeds the President's call for action and passes reform of Fannie Mae and Freddie Mac as it becomes clear that the institutions are failing.
And this is all the Presidents fault how? Perhaps he should have ruled as a dictator and enforced change?
Comments
Bush says "Give socialism a chance!"
Who would have guessed he was a closet socialist?
Oh well. Follow your dreams. That's what I always say.
this has been the case for almost everything he was accused of , but congress knows people dont care about truth or facts , its the main reason he was never impeached, because why wouild the democrats want the avg american to have access to the truth of many many iussues when they have already been sold and are happy with the lies and misperceptions?
Is Bush an idiot , sometimes , but at least i only dont like him for the actual things he did , and lay none of the other blame on him alone like democrats have for all the rest of americans issues.
Never underestimate the power of stupid people in large groups.
Why!!!
I think you have made it quite obvious. It is clearly all Bush's fault. If he had only sounded the Alarm in 2006. What was he thinking? Calling for Action in 2001, 2002, 2003, 2004, 2005,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
2007, 2008.
Did you see it? Did you? That great big gap, he never said anything. Yep It is his fault. Any Dope can see that. ........
/salute Bushmonkey
Link to that quote? i fail to find it with google.
Don't worry guys. I heard that Obama is going to CHANGE everything.
Touche'
Touche'
So you do not have anything real to say about the subject at hand? or the question asked ? well thank you for your informative comments and have a nice day.
Its just the fact that you know nothing about the financial issues at hand. And now you're trying to make it conform to your delusional left/right hegelian dialectic misunderstanding of all things. Don't worry, you are not alone. The general rule of thumb is: if you see someone posting about something here, then they are illiterate and their moronic opinions don't count. But if you must, go on, continue with the mindless chatter that makes you feel like you have a clue wtf is going on.
Well please enlighten me further from the depths of your wisdom, that i may know of the error of my ways.
You refer perhaps to the Trilateral commision,Council on Foriegn Relations and the Federal Reserve?
Hey I have to be honest. I am consistently moronic and I do go on with mindless chatter. There is a purpose. I have to enter the depths of stupidity to reach the illiterate morons whose opinions do not count so they can feel wtf it is like to have a clue.
I appologise. That was uncalled for. Just frustrated from hearing people around me crying about something they should have seen coming.
A few things people may want to consider;
1. A massive bank robery of epic proportion is underway.
2. Your future is being held for ransom right now by these bank robbers.
3. This is only the begining.
1. has been going on for nearly a century. 10 trillion dollars and counting.
2. If I was in debt I might feel threatened but I am not. Banks are in debt, I can not pay their ransom. Cause I have nothing left for them to take.
3. I know where you are coming from but the beginning started long ago.
How will you avoid paying the ransom? The FED will create the money per the bank robbers request, thus devaluing the money you make. Every time you get paid, you will pay. Its built in. That the genius of taxing through inflation.
You know, the FED does have the power to go ahead without congressional approval.
That is no problem hadub1, as i can see from your post history i understand more of what you are saying,at first i had considered you to be someone else i had previously antagonized on these forums, but it appears i was in error. When In fact you are one crying in the wilderness.
I posted this to razz the Dems/Libs. They just rub me the wrong way, i am a working man/living by the sweat of my brow, i don't have much sympathy for those sentiments.
i have been aware of the CFR Tricom and Fed Reseve for quite some time, not much one man can do,until the Sleepy heads wake up. If they ever do.
As for the bank robbery, well all that matters to me is survival, and i have it on good authority it is assured.
All i have to do is have faith that all things work for good to those who are called and have faith in the lord Jesus Christ.
I have said to often over the last few years "Enjoy it now, these are the good times" meh most just shrug, never believing anything bad is coming their way. I know differently and have prepared accordingly,another reason i will survive.
So /salute hadub keep fighting that good fight, have faith and prepare yourself for what is coming
And remember " In a Nation of sheep, one brave man forms a Majority"
How will you avoid paying the ransom? The FED will create the money per the bank robbers request, thus devaluing the money you make. Every time you get paid, you will pay. Its built in. That the genius of taxing through inflation.
You know, the FED does have the power to go ahead without congressional approval.
Yeah I understand the tax system. But you have to have earned income to get taxed. Maybe own a home. Drive a car or a purchase tax. Those are things I avoid like the plague.
But you are right eventually someone will pay. It just won't be me is all.
The Fed needs to find a harbour and step off before the crowds help them on their way.
President Bush publicly called for GSE reform 17 times in 2008 alone before Congress acted. Unfortunately, these warnings went unheeded, as the President's repeated attempts to reform the supervision of these entities
NO less than 17 times
Mr BushMonkey, truly a Great Post.todays market increase shows confidence in the market.and a major devaluation in the government stock !! I truly believe They have no clue what to do....Above their pay grade.
Trade in material assumptions for spiritual facts and make permanent progress.
Bush Monkey always has some of the most informed political post on these forums.
Bush Monkey always has some of the most informed political post on these forums.
High praise, i am humbled, Thank you Frodus, Vemoi
I don't see how people can still support Obama when he is only running for president right now because of these corrupt companies and organizations. He would have never won the nomination without them, and He is only looking out for thier best interests, not the American people. His people caused this mess, yet they think we should hand the country over to him to fix it? Why would they want to fix it, they are maing a killing off this?
www.youtube.com/watch
i would like to start a conspiracy theory.
since it is fact that an encumbent president nominee ie. the republicans, have less of a chance of winning an election if there is an economic downturn during the leadup to the nov. 4th. than it too, must be fact, givng the nature of politics and humans lust for power, that democrats knew the implosion they were going to cause by disregarding the warning signs issued to them leading up to this crisis.
so now all i need is:
a youtube video and catchy music with quotes from Bushmonkeys thorough facts.
-I will subtlety invade your psyche-