McCain ad blames Democrats on Fannie and Freddie

Democrat Party is one of the biggest problem with the financial institution,like the main CEO.Barrack Obama has a piece of the pie too like the saying 'bake your own cake and eat it yourself.'

It’s easy to blame the collapse of the two largest mortgage lending giants, Fannie Mae and Freddie Mac, on the consumer for chasing the American Dream and taking on more house than they could afford.

The Treasury Department has demanded the current CEO’s step down. Certainly those at the wheel have to bear some responsibility. But the pillaging was already in their rear view mirrors. Three of the main characters in this fiasco have strong ties to Barack Obama’s presidential campaign.

As Fannie Mae’s CEO (1999 to 2003), Franklin Raines pulled in over $90 Million, mostly in bonuses. He was sued by the SEC and OFHEO to recover $50 Million in bonuses due to Enron-like accounting practices overstating their earnings by $10.6 Billion. Franklin took “early retirement”, paid a hefty fine and forfeited stock options valued at $15.6 Million. He has provided advice to Obama on housing policy.

Jamie Gorelick was vice-chairperson at Fannie. In 1998, she received a bonus of $779,625 amidst a scandal where signatures were falsified on accounting transactions to meet earning targets. She is a leading candidate for Attorney General if Obama is elected president.

Jim Johnson was Raines’ predecessor at Fannie. He resigned from Obama’s VP selection committee after revelations he accepted a sweetheart loan from Countrywide Financial while Fannie’s CEO. He remains a close advisor to Obama.

As taxpayers, we are now liable for failures in a $5.2 Trillion loan portfolio to include $780 Billion in high-risk “Alt-A” and sub-prime loans. These are Friends of Barack we can ill afford!

In contrast, John McCain warned of the coming mortgage crisis as he pressed in 2005 for regulatory reform of Fannie Mae and Freddie Mac.

And Massachusetts, you’re not off the hook either. Your Representative Barney Frank (D-MA) is Fannie Mae’s patron saint and fought these reform attempts tooth and nail. In 2003, Frank rejected Bush administration and Congressional Republican efforts for the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis. Under the plan a new agency would have been created within the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are the two largest players in the mortgage lending industry. "These two entities, Fannie Mae and Freddie Mac, are not facing any kind of financial crisis," Frank said. He added, "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing." He remains blind to the whole fiasco.

Hmmmm....we don't seem to hear a whole lot from the Clintons in terms of wholehearted support of Obama. Quite the opposite.

They know that if Obama somehow pulls this out and pulls one over the eyes of the voter then Hillary's chances are slim to none to reach the White House. No way does she beat an incumbent Democratic president in 2012.

They also know that Obama is a big bag of wind. As Hillary said, The Messiah gave a nice speech in 2004 and that was about it. No bipartisanship legislation. Always voting "Present" on important issues whether in Illinois state senate or the US Senate.

Where are all the Obama kool aid drinkers on this article. This is the guy who is more prepared to lead our economic crisis hmmm. The Democrats are responsible for this problem so now they are going to save the DAY. Oh yeah blame the republicans because they had the whitehouse.

What is amazing to me is the fact that McCain's campaign received $169K from Fannie and Freddie LOBBYISTS. Obama's campain from Fannie & Freddie LOBBYISTS received $16K. Obama did receive more from the EMPLOYEES of Fannie & Freddie. Now to me it would seem that getting funds from the LOBBYISTS is worse than from the EMPLOYEES. Does that make any sense?

Hey Scranton Joe
Do you have explanations for Bear Sterns, JP Morgan, Lehman Brothers, Merryl Lynch, AIG and Washington Mutual as well? You seem to have left these companies out. Well, Thank God that McCain suspended his campaign and swooped down on Washington to push through that bill and save us all (sarcasm for those partisans who don't get it.) What about out our already ballooning deficit and the highest unemployment we've have in 8 years? Yes, you can tie Obama and the democrats to anything if you looked hard enough but innuendo and distractions do not help the economic crisis that deregulation and republican "trickle down" economic policies have brought us.
Wake up.

Republicans dominated congress for more than 10 years, and Bush has been president for almost 8 years, but the GOP still finds a way to point the finger and lay blame... unbelievable!

Congressional republicans have obstructed every bit if meaningful legislation in the last 2 years, and anything that does pass gets VETOES by Bush!

The GOP is always trying to blame Democrats, but they never take responsibility for their own failures!

John McCain "the regulator," yeah right!

What about RICK DAVIS????!!!!
Unlike Raines, who has absolutely
No role in Obamas campaign, Rick Davis is Mccain's CURRENT
Campaign manager!! And Davis was receiving $15,000 monthly payments up until a month ago! Nice try- no one who can read believes your desperate lies, it's over
Obama 08!!

Obama is gaining ground in the battleground states, as you all sit by and blame him for the crisis.

Rick Davis and Graham were the two who lobbied and cashed in on this crisis. They work for McCain.

McCain of 2008 supports deregulation and lobbying. He is 180 degrees different then the McCain you remember from 2000. Who is drinking the kool-aid now?

I think america Faces a very glim future and I'm not sure Either candidate can revitalize our country.

www.exchangelifenow.com

McBush is trying to blame the DEMs for Fannie and Freddie????

Mccain's campaign manager, Rick Davis, who previously served as president of the Homeownership Alliance, a Washington-based advocacy group whose founding members included Fannie Mae and Freddie Mac and which "defended the two companies against increased regulation.......

McCain "suspended" his campaign to get the GOP to support he bailout plan....that diddnt work.....DEMs supported the measure 2 to 1 over the republicans in congress.......

Look, the conservative business view is to let failing companies fail.....thats the philosophy....and they are right,,,,but not when these companies control millions of peoples fates.....the govt. should bailout the companies, fire the CEO's and replace them, provide internet based transparency, buy peoples homes and refinance them, and provide a way for the american people to get money back if the bailout succeeds

In reality, the financial troubles we are in are because both the republicans and democrats. Why won't you partisan hacks get it through your head that we have two factions of one business party in this country. Dems and Reps cater to and care most about the rich elite, not middle and working class people.

This is a lie.

The Republicans controlled congress from 2000-2006. The democrats couldn't have passed reforms if they wanted to. If you look at the record from when Democrats *did* control congress they tried to pass at least 3 bills to stop the housing crisis. The Republicans filibustered.

The ultimate responsibility for this falls on the federal reserve and deregulators. The federal reserve dropped the interest rates way too much to prevent the economic crisis after the tech boom. We're really just facing the postponement of that crisis. Plus interest. When republicans deregulated they let unscrupulous speculators profit off an already precarious situation.

The Repubs don't have much to hang their hats on these days, so they spend all their time blaming others. A once proud party of small government, states' rights, and fiscal responsibility has been taken over by Delay's, Roves, Abrahoffs', religious crazies, and others losers bent on winning elections with lies and distortions. Governing has been put on the back burner.

Why would America REWARD complete Republican failure ?

We wont.

Pretty rediculous considering McCain's own advisor was still taking money from Freddie Mac up until a month ago or so. What a load of crap!

Finally, and add that brings up the true reason for the economic situation. Come with me here and let us take a trip through time...

Ok, Jimmy Carter and the democrats passed the Sub-Prime Mortgage loans in the 70's to help low-income familys get houses. It was called the (CRA) Community Reinvestment Act (google it) which wasn't a bad idea if done right. It helped alittle but in 1995 Bill Clinton expanded the CRA by placing more requirements on it that forced banks to offer $1 Trillion in "Sub-Prime" loans or face penalties (Goverment Sponsored Security).

Bear Stearns, Fannie Mae would guarantee mortgages then sale that debt to Banks and investors. So, the more mortgages issued the more money Fannie Mae makes. They would tell the banks to issue the "guaranteed" loans with 'no money down' 'no credit' or even 'bad credit', as long as they paid the interest.

So, home owners started to grow and so did the price of housing. BIG PROBLEM!! Between 2004-2005 interest rates shot up and so did gas prices so paychecks got squeezed. Borrowers stopped paying so banks stopped lending and the sub-prime market collapsed in 2007. Foreclosures piled up, no buyers, only sellers. Home prices started falling and even more borrowers stopped paying and Fannie Mae "guarantees' became worthless because they kept over stating their assests.

Banks collapsed due to worthless Government Sponsored Securities issued by Fannie Mae. So, here we are today.... (continued as soon as I type it all out, just follow my posts)

What is amazing to me is the fact that McCain's campaign received $169K from Fannie and Freddie LOBBYISTS. Obama's campain from Fannie & Freddie LOBBYISTS received $16K. Obama did receive more from the EMPLOYEES of Fannie & Freddie. Now to me it would seem that getting funds from the LOBBYISTS is worse than from the EMPLOYEES. Does that make any sense?
Posted by mrsb

Not a bit.
Those contributions were BUNDLED from the employees. Why do you think the employees gave to the BUNDLE?
In truth, they were "encouraged"

This is a lie.

The Republicans controlled congress from 2000-2006. The democrats couldn't have passed reforms if they wanted to. If you look at the record from when Democrats *did* control congress they tried to pass at least 3 bills to stop the housing crisis. The Republicans filibustered.

Excuse me? Do you think that the Dems as Senate minority didn't Filibuster to kill bills?
WOW!!!

Ah, the Republican way: blame Democrats and do nothing.

(continued from previous post)
Why is the Community Reinvestment Act to Blame? Before CRA expansion home prices increase with inflation but, after the CRA, home prices became unhinged from inflation. CRA caused home prices to rise too fast which caused this 'bubble' everyone was talking about.

Did this have to happen? NO! Someone tried to stop it in 2003 and you will never guess who....The Bush Administration wanted "...regulatory overhaul of the housing finance industry which would create a new agency withen the Treasury Department to assume supervision of Fannie Mae and Freddie Mac, the government-sponsored companies that are two largest players in the mortgage lending industry." But, the Democrats stopped it, siting "...it would diminish their ability to finance loans for lower-income families."

Someone else tried to stop it in 2005 and you will never guess who...John McCain ...LOL!!! He co-sponsored a bill called "The Housing Enterprise Regulatory Act of 2005" (google it please www.govtrack.us Bill S-190). The bill would regulate Fannie Mae and Freddie Mac yet once again, the Democrats blocked it. It came back in 2007 but still no luck, because Fannie Mae had Friends in the Senate....

Chriss Dodd (D-CT) and Barack Obama (D-IL) covered Fannie Mae's backside and you will never believe who Obama selected to help choose his VP running mate, Jim Johnson - [CEO of Fannie Mae (1991-1998) etc...] who quit Obama's campign in June 2008 after he came under-fire. And you will never guess who Obama gets economic advice from, Franklin Raines - [Carter Administration (1977-1979 when CRA was first enacted) Vice Chairman Fannie Mae (1991-1996 when CRA was first expanded) CEO of Fannie Mae (1999-2004)] who resigned due to accounting irregularities.

Obama recieved FOUR-TIMES more money from Fannie Mae per year than any other senator over the last 20 years (49 Times less than John McCain). And you will never guess who worked at a law firm (Miner, Barnhill & Galland) that sued banks for not issueing enough Sub-Prime loans....Yes, Barack Obama.

Finally, and add that brings up the true reason for the economic situation. Come with me here and let us take a trip through time...

Ok, Jimmy Carter and the democrats passed the Sub-Prime Mortgage loans in the 70's to help low-income familys get houses. It was called the (CRA) Community Reinvestment Act (google it) which wasn't a bad idea if done right. It helped alittle but in 1995 Bill Clinton expanded the CRA by placing more requirements on it that forced banks to offer $1 Trillion in "Sub-Prime" loans or face penalties (Goverment Sponsored Security).

Bear Stearns, Fannie Mae would guarantee mortgages then sale that debt to Banks and investors. So, the more mortgages issued the more money Fannie Mae makes. They would tell the banks to issue the "guaranteed" loans with 'no money down' 'no credit' or even 'bad credit', as long as they paid the interest.

So, home owners started to grow and so did the price of housing. BIG PROBLEM!! Between 2004-2005 interest rates shot up and so did gas prices so paychecks got squeezed. Borrowers stopped paying so banks stopped lending and the sub-prime market collapsed in 2007. Foreclosures piled up, no buyers, only sellers. Home prices started falling and even more borrowers stopped paying and Fannie Mae "guarantees' became worthless because they kept over stating their assests.

Banks collapsed due to worthless Government Sponsored Securities issued by Fannie Mae. So, here we are today.... (continued as soon as I type it all out, just follow my posts)

I'm not a republican or Democrat, and It just seems to me that the Mc Cain ads just continue to play the blame, if it a problem they blame Obama. It doesn't matter what is wrong but it's all Obama's fault.

It is as if the the news says theres this problem, and next thing you know. It's Obama fault. Now I know Obama is not perfect, but everything is not his fault.

I beleive that a sign of a good man or women is a person who is willing to be reasonable, and stand up and say we or I mad a mistake.

McCain has made many Mistakes including one recent one with the VP choice.
But it turns me off that McCain uses every bad thing that happens in our country to blame Obama.

Lets stop with the blame game and come up with solutions, after all it not what happens but how you handle it that matters despite who started the problem.

PROGRESS IS WHAT WE NEED!

"The Republicans killed this," said Rep. Barney Frank, (D-Mass.). "Because somebody hurt their feelings, they decided to punish the country."

But what about Nixon's role? And Johnson?

Personally I am sure there are fingerprints all over this disaster that can be traced back a long time, and attributed to many people. Inaction or the wrong action, or misplaced trust.

But the Bush administration was following the Regan idea of deregulation, no matter who you try to blame, the plain facts point to a failure of regulation, and that was on purpose, that was an ideology that the Repulicans have been following for a long time, including when they have been in control the past 8 years.

At a certain point we have to look at the results of that ideaology and realize it didn't work. The problem needs to be fixed, and if you want to argue about blame it's very hard to ignore the "personal reponsibility" argument and the "no government is good government" approach.

This is a joke, right? Now McSame says he was in favor of regulation? The guy who always said he favors DEREGULATION? Where is the real John McPain?

McCains ad uses video of Clinton blaming Dems, how is that McCain doing the blaming here as so many suggest.....had Bush Sr. said the Repubs were to blame, think we'd see an Obama ad?

Wait a minute... In the ad the voice says “Democrats blocked the reforms” with a graphic dated 9/14/08. Then “Loans soared” with a graphic dated 9/30/99.

A bit of revisionist history????

This ad is filled with typical McCain lies and distortion hoping to confuse the electorate. Freddie Mac and Fannie Mae have never had more than a few percent of their holdings in subprime mortgages and they never originated these mortgages. In contrast, Why aren't we getting Straight Talk answers about McCain's campaign manager, lobbyist Rick Davis. Davis has a serious conflict of interest since his company in which he still maintains an ownership interest has received millions in fees from Fannie And Freddie.up until last month. McCain is a blatant hypocrite who continuing slippage in the polls will make him increasingly deceitful.

chris you cant talk sense to the senseless

Sorry SUMP, nobody is buying that you are independent.. As for the blame game,
they all do it...Republicans, Democrats, McCain, and yes the annoited one, Obama.

But when an entire party has used "BLAME BUSH" as their entire platform for the past 6 years, they lose the right of indignation.

There is plenty of blame to go around, Republicans and Democrats alike.. But Pelosi, Reid, Frank, and Dodd are right at the top of the list.

Andy2

What the politicians are trying to hide from you is that this failure was not a result of lack of government regulation. The federal government created this mess by meddling into the free-market economy. They forced banks to create homeloans for people who didn't have collateral and couldn't pay them back! Now, that very same government wants to spend our money to fix it!

WOW, It has come to my attention that most, if all republicans are NOT PROPERLY INFORMED. They would fight to say that green is actually pink. It's amazing !!!! The last 8 years have been a total blunder. The "W"orst president in american history (proven fact) and his cronies have destroyed, manipulated, produced false fear, used religion as a seperater,LIED,ETC. to the american people. If this was a business they would have been fired along time ago. How in your right mind can you support this JOKE ??!!?? Why would anybody want another 4 years of this american idol, soap opera, gossip magazine BOLOGNA. It's downright amazing and more than that SHAMEFUL to the wellbeing of anyone with any amount of intelligence.Look in the mirror ...people !!!!!!!!!!!

No More,

I am a TRUE independent, but I can almost say to some certainity that you are voting for mccain, I haven't made up my mind yet. THIS IS A OBSERVATION!!!

But if we want to place the blame on someone, let place it where it needs to be, with BUSH. Your telling me that you don't beleive we are worst off then we were 8 years ago! Our economy is tanking, but bush said just a few months ago all was well. Recession, Banks falling like flies on a zap light, the wars, thousand dead and you call that progress. If this is progress, then I don't want to progress anymore. IT SAD!!!!!

My thought here were not implying that I blaming everything on McCain and the Repubs or Dems. As I mentioned in my comment, Obama is not perfect either. My thoughts were that McCain Camp always blames everything on Obama.

Now, Obama camp does blame McCain for alot of things, but not everything that goes wrong. Case in Point, the bail-out didn't go through because the Majority of the REPUBS did vote for it, almost 2 to 1 compared to dems. But no more than 5 mins after the vote didn't pass, there was a statement from the McCain Camp blaming guess who. WOW! It just made me feel, did they even look at the vote. Granted the dem did support it either, but the MAJORITY OF THE REPUBS didn't.

So that's whats my beef with McCain's camp.

sump

if john mccain wants to talk about fanie mae and fredie mac, he should first sack rick davies.

Do you have explanations for Bear Sterns, JP Morgan, Lehman Brothers, Merryl Lynch, AIG and Washington Mutual as well ?
All fall-outs from the Freddie Mac and Fannie Mae scam

Anybody notice that McCain signed on as co-sponser in 2006..... after the bill already died. What's up with that?

Lets not forget that Senator Dodd and Obama are number 1 and 2 for recieving campaign money from Fannie Mae (over $125K) and Obama was leading ACORN to force banks in Illinois to provide loans form this program to the least who could pay. The problem is that this was a program created by a Democrat (Roosevelt) and the Democrats resisted any oversight. It only takes some research that the Democrats are to blame for this melt down but what do you expect when government gets involved. With the current meltdown and If government continues to grow, you can expect a recovery by 2033..

If Obama cares so deeply about lifting up the underprivileged, why is his aunt in Boston, and half brother in Kenya living in poverty? Be careful who you vote for!