Thursday, February 05, 2009

Move Along Now

-- In 1995, the Clinton Administration strengthened CRA. The implementing regulations for the CRA were strengthened by focusing the financial regulators' attention on institutions' performance in helping to meet low income needs. Clinton fostered the concept of the subprime loan. In other words, a bank product was created to make loans to those who were not able to repay, and to bundle these into marketable securities.

-- In 2004, chief executive Richard F. Syron received a memo from Freddie Mac's chief risk officer warning him that the firm was financing questionable loans that threatened its financial health.

-- In 2004 at a House committee hearing, Barney Frank said "...safety and soundness is not an issue." Maxine Waters said, "Franklin Raines has done a wonderful job."

-- In 2005, a Republican reform passed the Senate Banking Committee on a party-line vote, only to be blocked by Democrats from passing the full Senate.

Total contributions to Congress was $4,844,572.
Posted by at